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are cutting back, but they’re not cutting back on the $9.99 souve- nir. They’re maybe not buying that $29 sweatshirt, but they’ll go to Alaska and pick up $9.99 necklaces with a moose on them all day long.” Whimsical Watches’ Winenger
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also thinks his company has managed to thrive by offering value-priced merchandise. “The biggest thing that I’ve heard from others that market watches is that the trend right now is not to- wards real high-end, luxurious, expensive watches. It’s just not the economic time to be able to
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sell stuff like that. That’s good for our business. Not only is our stuff unique because it is whimsical; it fi ts someone’s budget even in the worst economic times of our life.” VLC’s Hickey agrees with that, saying that people want the quality of name brand watches, but not the higher priced versions. “We sell most brands in the mass market and mid-tier price points,” he says, citing Timex and Casio, among others. Kay Import’s Chung has words
of warning for retailers who take the low price mantra too far. “Cus- tomers are always looking for low price, but its really dangerous if you sell that. Low prices always means low quality,” he says. “People look for cheaper and cheaper stuff. But in six months, the color has been turned. The quality is not good.” He suggests that selling the lowest price and quality merchandise only works if you manage customer expecta- tions. “I put them on sale for 25 cents apiece. They are not meant to last long. They’re meant to be worn a couple times and then be thrown away.” On the whole, these savvy
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wholesalers think there are decent profi ts to be made in the business, even in the current economic climate. “We’ve tripled our busi- ness in the last three years,” says Whimsical Watches’ Winenger. SalesOne International’s Pineta suggests that successful business such as his own are positive ex- amples, saying, “Our business has done pretty well. Customers are looking to us.” And Sterling For- est’s Kumar is also optimistic. “It should be an up season this year,
continued on page 77 is Now INDEPENDENTRETAILER
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