I was recently reading an article online on how Bermo Enterprises manages over 30 Max 10 Family Fashions in the Midwest. The clothing wholesale company has set up stores where every piece of clothing has a maximum price of $10.
It made me realize how the same model could be applied to the wholesale handbag business, just instead of $10, you can use a $40 or $50 price point.
For instance, if you have a selection of brand name designer bags by names such as Coach, Guess, Michael Kors, and Jessica Simpson, you can set up a boutique or online business where every handbag is priced at the same price point.
My wholesale business, CloseoutExplosion.com, offers designer pocketbooks from $14.99 to $29.99 each. As a reseller you could order them from me, and then sell them under one uniform price. Even if this means underpricing an expensive bag such as a Coach, think of how much attention your shop will attract when people hear of your low prices.
Although you might initially give up some of your potential profit, you can quickly gain allot more in volume. While I believe this approach holds plenty of promise for an ambitious retailer, you can always opt to continue selling the handbags for as high as your market will pay for them, giving you what might be a larger profit but at a slower pace.
No comments:
Post a Comment