5 Main Ways To Make More Money In Your Fashion Business!

So many fashion store owners get caught up in a lot of staff and stock management "activities" and forget this one simple principle. There are only five ways to grow your fashion business:

Fashion retail store success

  1. Get more store traffic (get more).
  2. Have more browsers become paying customers (convert more).
  3. Get customers to buy more items or purchase higher priced ticket items on each visit (spend more).
  4. Get your regular or existing customers come back more often (visit more).
  5. Make more money out of each product line, improve your margins and minimise unnecessary expenses. (make more)

We call these the 5 Profit Centres in a retail store!

Yes, absolutely ‘Stock Management’ is very important to fashion retail store success, but it cannot be the only focus. Here’s how you can MAKE MORE MONEY using the 5 Profit Centres…

Profit Centre #1) Get more people into your store (thats store browsers) – preferably at a lower cost. Even if your conversion to a paying customer remained exactly the same, more store traffic equals more sales. The ‘challenge’ is to find low cost methods to increase store traffic.

Good strategies include advertising, mailbox flyers, fashion shows, referral programs, special events, signage and so on. Look in the ‘new customer marketing’ section in this member’s area for more information and examples.

Profit Centre #2) Get more people to buy. Again, if you improved nothing else but had more store browsers convert to paying customers, you’ll increase the total sales. Good strategies include improvements to store layout, staff training, product placement, signage, pricing and so on.

Profit Centre #3) Get customers to spend more on each visit (this is called the average sale or average cheque). There are literally dozens of strategies to get customers to spend more… up-sells, cross-sells, point-of-sale displays and so on.

Profit Centre #4) Get customers back more often. Utilise our customer marketing services at Kinetic Media & Marketing – we use post, SMS and email to communicate to your customers.

Profit Centre #5) Improve your margins. What’s your gross margin? Your mark-up? Your cost of goods? What’s the relationship between your turnover to staff wages? What are you best selling items? What items have the largest profit margin? How can you sell more of them? What’s the break-down of expenses? Is there a blow-out in one area? How much old stock are you carrying? How well does your store perform again the Australian statistics for retailing?

These are some of the many sub-areas you can look at to improve your margins.

By taking time to improve those 5 Profit Centres, you’ll see an almost INSTANT improvement to your bottom-line store profit!

About the author: I’m Mark Fregnan, founder of Smart Fashion Marketing (Kinetic Media & Marketing) – an Australian consulting business that assists fashion retailers to increase sales and improve business value. Because we have a passion for marketing, our retail business clients enjoy better store and label brand exposure, greater cash-flow and more time off to enjoy the finer things in life!

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