top of page
Search
Writer's pictureCamilla Gleditsch

BUSINESS INSIGHTS | How To Make More Money As A Small Business Owner

Updated: Jun 11, 2021



One of the biggest worries small retail owners around the globe have is how to make sure their business generates money. You need your business to not only make money, but you need it to make a profit after all your expenses are paid.


So this month, I am sharing some tips on how how to make more money if you are a Clothing business owner.


1. How To Earn Revenue Before Selling Anything - Pre-Sold Credit Cards


During the lockdown, 2 of our clothing business owners developed a top-up card program. They reached out to their followers on Social Media with a limited-time campaign, offering them the chance to buy cards with Euro credit on them. A customer would pay 300 euro, but was given a 400 euro credit that he could spend at a later time. This provided the business with an injection of cash during a time they needed it the most, added value to their consumer by essentially giving them a 100 euro for free and helped ensure traffic to their stores (when they reopened) was at a high level, which gave them a further opportunity to up-sell, these same clients, on new seasonal arrivals, thus making their margins back.



2. How To Drive Maximum Product Value During A Sale - Buy 1 Get 1 Free vs. Heavy Discounts.


There are many different methods to increase your sales. However, it goes without saying that shoppers like getting items for free. A Buy 1 Get 1 Free sales strategy is financially better when compared to a 50 - 80% single item discount strategy. Let me break it down for you.


  • Take Product A that sells for €80 and has a €20 cost. If you sell that for a 50% discount, you’ll end with €20 in profit (€80 * 50% = €40 minus €20 )


  • Now, instead of a 50% discount, the promotion is to buy one of Product A and get another one for free. The sale value is €80 now and the total cost of sales is €40, leaving €40 in profit, doubling the profit compared to the 50% discount promotion.


Shoppers also generally overvalue the benefits of “free” even when compared to higher-quality items at a discounted price. It also creates a sense of urgency, pushing customers to make a purchase. So the next time you are debating how to run a sale promotion, make sure you are clearing out that inventory while profiting!



3. How To Increase Retail Price By 5% & Get Away With It - Improve Product Customer Perception & Perceived Value.


When you talk about perceived value, a lot of different things come to mind. Some people look at perceived value as an emotional element, others a tangible one. In the world of branding and packaging design, all of these intrinsic elements float to the surface and provide customers with new ways of absorbing and thinking about products as well as what they represent; both in value, as well as in emotion.


For example, optimising product packaging and store presentation both on the shelf and in the hand of the consumer is paramount to generating a more premium product experience, allowing the retailer to justify selling a product at a higher price than if the product was presented with no care or effort. So be smart about how you present your products and start to think about what additional things could you do to improve product perception, perceived value and earn more per sale.

4. How to Increase Sales While Holding Less Stock - Install an End-to-End Retail Solution to Meet Real Demand.


Covid has caused many pains for many businesses. It has also opened up the discussion on whether stock is needed as part of running a Menswear business. Aside from Covid, stock always had a dark side-effect, both from a financial stability perspective and an environmental one too. However, there are solutions. Retailers can reduce waste by taking a step away from operating a traditional stock holding business and instead order only what the customer wants when they want it.


Darren Guest, the owner of the Pinstripe Punk brand - a Menswear Brick and Mortar store in Dundalk (Ireland) - uses an End-to-End Retail Solution by RJ MTM that has empowered him to Order-On-Demand and to offer his customers the exact fit, style and design that they like.


When I spoke to him, he further explained, "as a business owner, not having all my cash-flow tied up in stock has made my life much easier, with more room for creative designs & styles on products that have attracted a whole new type of customer to my store. Creating custom garments and tailoring them is ridiculously easy. It's definitely taken my business & brand to the next level".

An easier to run Menswear business, where products are superior, the customers are happier and there is no up-front investment in stock - what an interesting concept...


Hungry to find out how your business can reap these benefits and earn more money?


Click here to see the products that you could be offering very soon!


Cheers,

Comments


bottom of page