How to Start a Leggings Business Successfully
So you have thought about it, analyzed and determined that you have an opportunity to start your own leggings business and be successful at it. What to do now? Once you have decided that you may be successful at starting your own leggings business there are a few thing you need to consider right off the start and we are going to cover the basics so that you can ask yourself the right questions, make the right decisions and be successful at your new business venture.
Leggings Inventory is the Most Important Factor
Which legging styles you choose and the price you pay for them are going to be your 2 most important ingredients as to how successful your business will be. Having great and amazing styles that people are really going to want will ensure that your are able to sell your inventory. This is called "Demand" and having fabulous styles that are on trend and scream "must have" for your wardrobe are critical. The next element is ensuring that you get your leggings at a great price with as little "Inventory Risk" as possible. The difference between your selling price and cost of goods are your "Gross Margins" and ultimately determines your profitability. So the two elements that you must keep in mind when starting your leggings business is:
- Acquiring amazing legging styles that people will be eager to buy
- Getting your legging inventory at a great price
The legging styles you choose based on your market is going to be critical and not all markets are the same. Pick and choose carefully and know the market that you are selling to and then get them at a great price.
Managing Your Legging Inventory
There is another critical component to managing your leggings business that can optimize your success and profitability, it is limiting and even eliminating "Inventory Risk". No one can have a perfect track record of picking the best sell-out styles and then order the perfect quantity that limits your exposure to being stuck with "Stale Inventory". What is stale inventory? This is inventory that you cannot easily sell and need to mark down your prices in an attempt to get the liquidate them to purchase additional new inventory. Image if you bought 20 styles with 10 pieces of each. Selling 10 pieces of the same style can be very difficult and nearly impossible if the style is a miss with your market. This can waste a lot of time trying to sell this inventory at a discount to clear it out and bring in the new. In fact, this is how many small and big businesses go "out of business". They go out of business because of inventory mismanagement and this is a very common phenomenon. In fact, during the 4th quarter of 2017, H&M reported excess inventory of $4.8 billion, that is $4,800,000,000 in full numbers, that is a huge amount of fabric that will hit the market and depress prices in many areas globally. Inventory style misses or purchasing too much inventory of styles that are not in demand can be the death knell of any business both big and small. This is something that the Leggings Wholesale Superstore can help you with so that you can virtually eliminate inventory risk.
How Can the Leggings Wholesale Superstore Help me with Inventory Risk?
The Leggings Wholesale Superstore allows you to purchase each and every legging and fashion style in single piece lots so that you can buy as little as 1 piece of each style or as many that we have in inventory and even more if you would like to make a special order. Lets take an example of how this is a critical ingredient in maximizing your success and profitability.
Lets take an example a 30 legging purchase. Keep in mind, you do not know how good any of these new styles will sell or which ones will be the most popular. We will take 3 examples:
- 3 styles of 10 pieces each
- 6 styles of 5 pieces each
- 30 styles of 1 piece each
Trying to sell 10 pieces of only 3 styles could result in a very bad result. If you pick 3 styles that do not sell very well to your customer base then you are in trouble right off the start. You will be scrambling to liquidate your inventory to try some new styles and you will waste time and money trying to get your mix right.
The second example may yield better results but if you pick 2 great selling styles, 1 average and 3 slow pokes then you may have 50% of your initial capital stuck in slow moving stale inventory.
Our final example of 30 different styles of 1 piece each will allow you maximum profit potential and limit the loss you may take on stale inventory. It will also give you a very good idea of what styles are selling. Perhaps you noticed that all of your sugar skull leggings and pink floral leggings sold right away. This is fantastic market intelligence as this may prompt you to purchase 2 in each of the styles that sold right away and allow you to flip your inventory much faster by bringing in styles that you know sell fast. You may then also notice that there are a number of styles that no one is interested in and this will give you very valuable information. If no one is even interested in the styles that are not selling then you know which ones you should or should not bring in. This is critical in developing your inventory without the huge frustration of trying to liquidate bad style decisions. You can now start to image how your own inventory management is going to work and how you are going to be able to limit your risk by being able to purchase in single piece lots. Do not underestimate the critical business principle of inventory management.
There is another element to inventory that is important to converting your inventory investment into profits .... getting your product in a timely manner.
Getting Your Leggings Inventory Quickly - Inventory Turnover
Inventory turnover is the ratio showing how many times inventory is sold and replaced over a period of time. The days in the period is divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand. It is calculated as sales divided by average inventory.
This is quite simple for smaller inventories. So if you sell 5 leggings per week and have 50 leggings then your inventory turnover rate is 10 weeks. This may not be exact as some style in your inventory may be tougher to sell. Now image if it takes 2, 3, 4 or even 5+ weeks to get your inventory? This can have a catastrophic impact on your ability to maximize your inventory and your profits. Even 1 or 2 weeks can have a huge impact on your bottom line. When you order your inventory you want to have it a soon as possible so you can convert fabric to profits.
Again, This is where the Leggings Wholesale Superstore is going to be a huge benefit to you.
The Leggings Wholesale Superstore gets most of its orders out the very same day (if you order before 2:00 PST). 95% of all orders are shipped the same day and we even offer 2 - 3 day USPS priority shipping at a fantastic price. We also offer UPS ground if you prefer at prices that are just a good. We know that when you get your leggings quickly that you can then offer them for sale just as fast.
We will always try our best to make sure your business is as successful as possible. When our customers are successful then we are successful.
The Leggings Wholesale Superstore is Ideal for Small Boutiques and Niche Businesses
If you are already operating your own small boutique or niche orientated business then adding as many styles as possible is going to be a critical component to your success. The Legging Wholesale Superstore allows you to purchase leggings in single lots so that you can add an amazing mix of styles with limited inventory risk. Or perhaps you own and operate a flower shop and you think that selling floral leggings may also be a good idea for your clientele. Leggings are a great way of up-selling your customer base with high quality fabulous legging styles.
Your options are virtually limitless and we are always bringing in new legging styles to ensure that you have options and fresh ideas for your business.
Think More than Just Leggings - Think Leg Fashion
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