Opening a retail store in California

[danzakcpa]

Hello all, I was wondering if any of you out there have any experience with opening of a new retail clothing store. My specific question, how do you know how much to markup or markdown items and when. Any advice would be helpful on this, as we are trying to understand the ins and outs of opening a retail store, thanks!!!!

Robin

 

[cakebaker]

A long time ago I used to listen to a guy named Bruce Williams on the radio. He gave some advice at the time which I'm sure holds true today: He said if you want to open any type of store, in you case, a clothing store, first get a job working in one. Have you done that yet? Doing that may give you the answers you need, since you could talk to the owner and get the daily ins and outs that way.

 

[acatalina]

Too my understanding. There is a 200%-400% markup on retail in stores to cover rent etc.
Go with the flow. When others are offering 20% do it.
Usually , the week before x-mas it is up to 50% off then after 60-70.
Larger markups where you have to clear out old stock.
Look at what the big ones are doing and follow...

Good luck in your business adventure..
As a rule, you need a years x-tra cash to carry you the 1st year..
It is proven , most business fail within 4. if you make it past, you are doing good.




Anne
Aka( Storm)

http://www.picturetrail.com/acatalina

 

[danzakcpa]

thanks anne, really, 200-400 percent markup on cost? wow!!! we were going to follow the big ones and other boutiques in the area, we also downloaded some local/national benchmark ratios as well. i worked in a retail store for years as well. thanks for your advice.

robin