ADVICE NEEDED....Opening Boutique Store****undisclosed canadian location****

[flex1]

Hi all,

For about 6 months I have been actively persuing investors to provide me business loans to open a boutique ***undisclosed canadian location****. I have come up with a pretty substantial line of credit, as well as some solid backing from familymembers totalling to about $150,000, which I feel is a solid start. Me and my investment partner have located a location already and are in the midst of entering a lease agreement scheduled for April 2006/May 2006.

I have about 5 years retail experience under my belt, and know a lot about most of the management and ins and outs of running an actual store (employees, inventory, sales). However the part that I am not completely sure about is the "buying" aspect. I need help on the steps of what is the most cost effective way of using my budget to work for me. How should I effectively allocate my line of credit? I plan on having a beginning inventory of approximately $100,000 give or take for the first season, planned for late summer 2006.

I am fairly focused on what brands I want to carry, and will be focusing a lot more underground streetwear labels that have been obsolete from my planned target market.

However in the short period of time that I have assembled my business plan I have been unable to make any tradeshows as of late and have missed the fall 2006 season. Because of this is there still an effective way of getting stock for my expected opening?

What is the best method payment, shipment etc.? I have knowledge in regards to COD, paid on delivery etc. Is there any other effective methods? I understand that a seasons inventory must be flipped in order to make way for new inventory. Should I allocate the shipment of my incoming stock in stagger, so not to hold an entire season on my line of credit? Eventually I plan on carrying larger inventory, and therefore will require more money to be reinvested. Please explain the process that is needed to turn my $100,000 inventory into more if successful.

I apologize for the rambling, I need as much help as possible and any advice/suggestions is greatly appreciated.

[flex1]

Also does anyone have buyer contacts for Pam, Noah, Wing&Horns, Silas? thanks again

[Jay Allen]

What gross margin are you hoping to achieve on your sales. Also.....how many times per year do you think you can turn your original 100,000 inventory? In simple terms....if you buy something for $1...what are you going to sell it for? Once you figure that out you then need to make assumptions on your sell through rate. If you buy 10 items....how many will you sell at full retail......how many will be marked down....and how much will they be marked down.

These, at the outset, are all ASSUMPTIONS but will give you an idea what a projected gross margin will be. For instance: If you have 100K in inventory and achieve a 50% gross margin that means you sold it for 200K. If it takes you the entire year to do that you only have 100K to pay all of your overhead and salary if you plan on carrying the same level (100K) of inventory. Obviously most retailers turn their inventory more than once per year.

I have a fair amount of buying experience, although not in streetwear and sneakers, so if you need any other questions answered feel free to PM me.

Conceived and executed on the working waterfront of Portland, Maine. [email protected]

[aitsuka]

good luck on your business venture, keep us updated on your progress

-don't hate, appreciate-

[SENDkylHISPASSWORD]

Check out PegLeg NYC

peglegnyc.com

check them out. They don't have any CDN representation. Why is your location undisclosed? Any Hints.

[adsurgo]

yeah i really dont like that style but how pegleg pulls it off is nice. i like some of their designs. get em some good representation. they need it.

[attrition]

Canadians need Pegleg!!

I'm feeling their early 90s vibe.

Beware of NTers asking for selvage

[SENDkylHISPASSWORD]

Quote:

Canadians need Pegleg!!

I'm feeling their early 90s vibe.

--- Original message by attrition on Oct 26, 2005 02:21 PM

Just found out Goodfoot had some, I guess it went quickly. They sell it online now, but only a few Ts and they are all 48 USD shipping and tax included.