Clothing Store Business Plan
Make sure your description of promotion methods in your plan doesn't read like a laundry list of ideas. Readers want to see that strategic thinking has gone into the choice of tactics and that you have focused on methods that will serve you well, be cost-effective, and work in concert with each other. To know what methods may serve you well, look at case studies for other clothing stores, or other types of businesses who reached your intended customer market.
For cost-effectiveness, dig deeper to consider the real cost of the tactic. This includes the cash outlays as well as the management time involved and the effect of any offered discounts on purchases which would have happened anyway.
And to make sure the different tactics work well together, consider the message each sends to your customers about the type of store you are. Sending out coupons sends one kind of message and sponsoring a neighborhood art gallery opening sends another. If conflicting messages reach the same customers, you can expect that neither of the conflicting tactics will work to their potential and that the store's brand may not develop as you'd like it to.
Describing how you will price your products is much more important than actually pricing them in the plan itself. To this end, you must have a sense of the cost of the goods from the prices you will be charged by clothing suppliers as well as the prices that retail clothing store competitors charge for the same or substitute products. Simply saying that you will price everything at a 30% markup, or some other pre-defined percentage, ignores the fact that this may or may not be competitive with your customers' other options.
However, if you always set your prices relative to a specific competitor or competitors, you run the risk of missing out on revenues from being able to raise prices if your brand achieves greater value. Your pricing strategy may change over time and reevaluating quarterly is a valid approach, as changing pricing more often that that can confuse or upset regular customers.
Want more tips? Here's a related article: How to Start a Clothing Store.
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