Children’s boutique markup

amother

Mon, Aug 26 2019, 9:27 pm

Just wondering if anyone knows the markup of the local children’s boutique? Just very curious since there seems to be a huge selection at the 70% off sales which I’m guessing they loose out from.

amother

Goldenrod

Mon, Aug 26 2019, 9:33 pm

amother [ OP ] wrote:

Just wondering if anyone knows the markup of the local children’s boutique? Just very curious since there seems to be a huge selection at the 70% off sales which I’m guessing they loose out from.

And which locality would that be?

amother

Linen

Mon, Aug 26 2019, 9:39 pm

amother [ OP ] wrote:

Brooklyn/Lakewood/ websites

Are you referring to a specific store?

amother

Blush

Mon, Aug 26 2019, 9:56 pm

amother [ OP ] wrote:

No. They all seem to go upto 70 or even 80% off.

You mean past season sales. Not on new items.
I believ the markup is 30% . They always loose on sales but need to get the merchandise out

amother

Blue

Mon, Aug 26 2019, 10:38 pm

I know one local store that sells Europrean clothing. She once disclosed that they hike up price more than reg in beginning of season for all those richies that can afford it, that way she can go down at end of season to 70-80% off, and break even or not lose so much. She has made her profit for season in beginning, it builds a brand if it's expensive & plain folks feel they got a huge bargain on expensive brand clothing, so they feel lucky too. So it's a win-win.

Another local store, when people complained how come they only go down to 40% off end of season & not like other stores. She claimed that her prices are reasonable to begin with, she's not ripping you off like the other stores so she can't go dpwn so low.

amother

Ecru

Mon, Aug 26 2019, 10:48 pm

1st hand info - the markup is 100% (doubled)
Its mostly the same across the board to keep prices competitive. When stores are more than 50% off they loose money

dankbar

Mon, Aug 26 2019, 11:20 pm

But at full price they definitely lose money, nobody is interested even to glance at the stuff once season is over, so they've got no choice, if they want at least to get something back & push it out

Amelia Bedelia

Tue, Aug 27 2019, 8:02 am

amother [ Ecru ] wrote:

1st hand info - the markup is 100% (doubled)
Its mostly the same across the board to keep prices competitive. When stores are more than 50% off they loose money

My first hand info contradicts yours. 30% markup. Once the store gets marked down to more than 30% off, they lose money.

southernbubby

Tue, Aug 27 2019, 8:28 am

It looks to me like the profit margin depends on the quantity of an item that the store buys. A packet of a style may have 2 of each size or may vary the quantity in sizes that are likely to sell the best.
The leftovers are often the less popular sizes for that style. Because frum people love to buy matching for the kids, the stuff on sale may not be in each size unless that look was either really unpopular or really overbought.
The Kidi Chic Catskills outlet is a super good deal, only open in summer, but may be older, less practical, or less popular styles and colors. The stores that close when the summer ends are likely to be the best place to shop for bargains.

mommy3b2c

Tue, Aug 27 2019, 9:20 am

Amelia Bedelia wrote:

My first hand info contradicts yours. 30% markup. Once the store gets marked down to more than 30% off, they lose money.

I used to sell this stuff. The markup is 100%. Sometimes a bit more. And while technically they are losing money on the item once they go on sale, since they already profited (hopefully) the remaining clothing is sold at steep discounts and anything they get is just cash in their hand. And the clothing loses its value once it’s out of season. Hence the reason for the high markup. Otherwise it would be impossible to make money.

2gether

Tue, Aug 27 2019, 9:22 am

What are these percentages based over? Over the cost of the fabric and design? or do they include overhead, marketing, staff etc.? If its 100% over just the fabric -that makes more sense to me. But 100% over all expenses sounds a bit high, even if they raise it in order to lower it at the end of the season.

cnc

Tue, Aug 27 2019, 9:28 am

Amelia Bedelia wrote:

My first hand info contradicts yours. 30% markup. Once the store gets marked down to more than 30% off, they lose money.

The clothing is 100% markup.
It’s possible they’re still losing money once it’s discounted by 30% but that’s because there are other factors in running a business besides for cost of goods. Overhead, maintenance, labor etc.

amother

Linen

Tue, Aug 27 2019, 9:46 am

2gether wrote:

the boutique would be purchasing the clothes. So 100% represents their mark-up over their purchase price. If a dress they purchase for $25 will be sold for $50.

(if its 100%).

2gether

Tue, Aug 27 2019, 10:02 am

amother [ Linen ] wrote:

the boutique would be purchasing the clothes. So 100% represents their mark-up over their purchase price. If a dress they purchase for $25 will be sold for $50.

(if its 100%).

That's exactly my point, then 100% is the markup but not the profit.
And if they manufacture themselves then its still probably the same ratio.(I.e. not really 100%)

amother

Linen

Tue, Aug 27 2019, 10:33 am

2gether wrote:

That's exactly my point, then 100% is the markup but not the profit.
And if they manufacture themselves then its still probably the same ratio.(I.e. not really 100%)

The question was about markup.

If you want to talk accounting - the gross profit in the clothing business is revenue (sales) less purchase price of clothes (including delivery charges to store), less ending inventory (which at end of season will be none, they will deep discount it, or otherwise discard)

Clothing boutiques aren’t manufacturers.