You went into business selling your cute designer baby clothes. But the boutique owners you've approached are telling you they just don't have the money to spend on any new inventory. How do you re-invent your business model so that your baby clothing business can succeed in an economic recession?
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Selling Baby Clothing to the New Budget-Conscious Parent

So you just went into business selling your cute designer baby clothes and even though it looked great on paper, you are really struggling to make sales. Your per-item cost is way too high and your profit margin is way too low. The boutique owners you've approached are telling you sales are down and they just don't have the money to spend on any new inventory. You are running into a wall. So how do you re-invent your business model so that your baby clothing business can succeed in an economic recession?

First, you need to re-invent your product. In our new financially aware society, consumers are spending less and less. Parents are choosing more affordable clothing options for their little ones. A good idea would be to cater your product to the new budget-conscious parent by lowering the retail price. Of course you need to lower your expenses in order to do this.

Re-evaluate your per-item costs and where you can save money. Would using a new wholesale clothing supplier help bring costs down? Or perhaps offering white garments only may help to save money. White garments tend to cost less than colored garments when purchasing on a wholesale level. Also research your embellishments and how you can save money.

Would heat transfers save money over screen prints? Can you use rhinestones instead of swavorski crystals? Or perhaps you can just use clear crystals instead of colored ones since these tend to cost less. What sacrifices are you willing to make in order to bring costs down for both you and your customer?

Thinking outside the box in tough economic times is always a good idea. You can save on expenses outside of your product, like overhead costs. Opening an internet store, as opposed to an actual retail location, is the best way to save overhead costs. Try utilizing internet websites that allow you to list and sell your garments online for a per-sale fee. Even paying a small monthly fee to set-up an online store through these websites may prove to be well worth it.

Your profit margin for retail customers is much higher than wholesale customers, so it is definitely worth having an online avenue to sell your products. Investing in your own website can be costly and risky in hard economic times, so starting off on a well-established website that caters to your baby clothing business can be a great way to save both you and your customers' money. Just remember to price your clothing competitively since online shoppers are always looking for the best deal.

Parents aren't the only ones who are watching their wallets in these tough economic times. Business owners are as well, especially retail shop owners. These customers are vital to your custom children's clothing business and you can't afford to lose them. You may want to mention to them that you have changed your product so that it is now more affordable for their customers as well as for them. You have budget-conscious parents in mind and therefore wish for your baby clothing to be one of the lower priced items in the store so that the shop owner will have a quick inventory turn-over.

If shop owners are still hesitant, offer a net-30 or net-60 payment plan which allows them 30 or 60 days to pay on the invoice. This gives them enough time to sell the product and pay for it with the proceeds instead of paying in advance. If your wholesale customers still insist that they simply do not have the money to purchase your clothing for their store, offer to work out a consignment deal. This way they do not have to pay you up-front for the product. They only pay you when your product sells so they are out no money, usually on a monthly basis. It is a win-win for everyone since you are, in affect, offering to put money in their pocket at no cost to them. How can they say no to this?

Recessions may lead consumers and business owners alike to spend less, but they don't cause a significant downturn in birth rates. So whether the economy is flourishing or failing, people are still going to have babies. And all babies need clothes. And all parents, no matter how small their budget is, want cute clothes for their precious little ones. So don't let a slow down in the economy slow you down! Just make sure that your business plan is constantly changing with the times so that you can easily find success no matter what financial crisis we may be in.


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