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Why private label will save your business.

Owning a retail store just isn’t easy! Online sales are increasing mall visits are declining and major retailers are liquidating. The future doesn’t look great for brick and mortar.

But there’s still hope……Private labels!

Creating your in-store brand will be an important tool. Strong private label brands can’t be overstated. Consider Sears — the struggling department store that has been closing stores at an alarming rate but, its s

tore brands remain valuable. The company sold their Craftsman brand for roughly $900 million. It hit me one day while shopping at Costco. I trust their brand I will buy their products. How do I create this in my own business? Answer: Private Labels!

Private label is suddenly poised to be a big deal! Perception of quality is evolving. Private labels allow stores to offer their customers lower prices, which can help drive much needed traffic. Even at a lower price, you have a much better margin. Private labels limit a customer’s ability to price shop. Ultimately giving you an advantage on your competitors.


Let’s look at the figures………

Prior to going all private label, I bought from major designers. I am only going to use one in this equation but, I typically bought from 3 designers. Ultimately tripling the numbers.

With brand A I carried 3 lines. Wholesale pricing ranged from the low end of $499 to high end $1500. My minimum for all three lines were 50 pieces per year! This cost me approximately $51,552 per year just for samples! Off the bat I had to sell 50 dresses just to break even.

Then there was the dreaded delivery from this company they would send you $100,000 worth of specials all at once (typically they sent dresses that were for weddings 10 months away while I stressed over the one, I needed for this week)!

I was fed up! I just didn’t want to play the game. My store is small and has always been what I consider to be successful but, I just wanted to quit! I didn’t love it anymore.

I started working on how to make my own label and soon realized that the costs were 4x what the designers wanted in minimums. I couldn’t produce the numbers in sales and then I would have to wholesale to other stores to make this work. That was a whole new project I didn’t want to take on. Then I started researching private labels insert Lux and Love.

Low annual minimums and 4x markup! Meeting my minimums meant buying 8 dresses with an approximate cost of $2720*. At a 4x markup I had to sell 2.66 dresses to break even. If I really needed 50 dresses per year in my store it would cost me $17,500 (17.15 dresses to break even).

I needed to offer my brides something different. I got tired of “I tried this on at another store”.

Now I pay for my dresses up front, when I take a 50% deposit, I have already made a profit and when the balance is paid it is free and clear money!

Lux and Love has been a saving grace for my bridal shop!!!

*based on an average dress cost of $340


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Hi, thanks for stopping by!

I can't wait to help guide you through private labeling and the assets it will bring to your business.

~Zerlinda

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