Retail Industry/IN THE RED!

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Question
Hi Stu,

My daughters and I opened a brick and mortar bridal boutique in September 2013 and we were doing well until we depleted our cash flow with a powerful vendor that was overwhelming, and we learned a powerful lesson as new bridal shop owners.  How do we get back in the black with our existing inventory?  We don't have the cash flow to buy 2015 stock.

Please tell your readers how to purchase inventory and not be finagled by sales people.

Answer
Thanks for the question.

Firstly, I recommend you study "cashflow management and budgeting" - this will ensure you do not over-invest in stock.

You basically need to move your existing stock at cut prices to turn your cash back over.

You can always try approaching the vendor and tell them if they want to continue supplying you, they should help you out with exchanges for current stock. It doesn't make sense for them to burn you and lose you as a customer - so make sure they understand that!

You need to have a sale, and fast. You need to advertise this sale on facebook, in your windows, etc.

As for overwhelming vendors, it's your business, don't spend more than you can afford, and don't be afraid to say no. It is that simple,

All the best

Stu

Retail Industry

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Stu Jordan

Expertise

Simply put, I help Retailers make more profit! You will NOT hear me talk about excessive stock control mechanisms, specialized POS software, or sales training. Instead, I am available to answer questions relating to retail fundamentals - the art of buying and selling - and making a healthy profit along the way. Areas of specialty include: - CASHFLOW - how to keep your business in the black (or get it out of the red!) - PRICING - strategies, margin, mark-up, wholesale to retail, etc. - PRODUCTS - what to buy, what to avoid. - PRESENTATION - the science of product placement! - SALES - how to grow these fast, and keep the cash register ringing. - AGED STOCK - a silent profit killer! How to manage this area of your business - SUPPLIERS - leveraging these relationships so you get more from them! - MARGIN EROSION - and how to prevent it. If you have any general or specialized retail issue, I am happy to help you out. Also happy to talk to manufacturer/wholesalers who are looking for advice on breaking their products into the retail market. Follow me on Twitter @retailguru, or check out my blog for other useful advice (free!) retailprosperity.com

Experience

15 years experience in the Retail industry - unlike many experts, I have made my money from my own retail ventures, not from selling my advice! Over ten years of my retail life was as a troubleshooter - my job was to fix the messes! I have worked with a huge variety of retailers to turn their struggling businesses around, and have found there are a number of principles that apply to all types of retail businesses, from luxury boutiques through to 2nd hand stores. I own a successful retail business in New Zealand, which has recently been franchised. My success comes in retail from the same strategies I am happy to share with you. I am also the author of The Retail Prosperity System - a handbook for Retailers who want to make more money from their retail businesses. This outlines the strategies I have developed and used in retail myself.

Organizations
A number of Retail Associations, including NZRA, BNI (you would be amazed how networking can improve your revenues!), EMA, New Zealand Franchise Association

Publications
Author of The Retail Prosperity System, various forums and blogs, including www.retailprosperity.com

Education/Credentials
Studied Law at Otago University, and let's be honest - nothing beats 15 years real experience in the retail world, including building my own successful retail chain from scratch!

Awards and Honors
New Zealand TOP SHOP finalist 2010

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