I need to help my mother keep her business!?

Question

My mother and I started a plus size womens clothing store in a small to medium sized town in Kansas. Its on Main st where lots of other retail businesses are. And tho we cater the clothes to plus size women we carry name brand purses, nice jewelry and scarfs and hats and gloves. And we carry sandals in the summer! lots of things other than plus size clothes. we thought it was a great idea because the only place in our town where you can buy plus size is walmart! Our prices are moderate, we dont even mark things up to there retail value! The first year was ok(it kept the bills paid) the second not so hot! and now we are dreading starting the third year! Please help this is my mothers life long dream! i dont want it to fail! We spend around 25% of our monthly income on adverising..we advertise with three newspapers...two radio stations and send out newsletters! and its still not bringing in the customers!Our target age group is 18-60 we carry every thing for every women thats why my mother and i started the business together...im 20 and shes 42 so we get a wide range of style difference from out age! And i dont think our clothes are frumpy i think we sell very nice things and we are small town so we wouldnt sell a thing that we wouldnt wear ourselves or that is damaged! Our customers that do come in are always saying what a great store we have and we have so many cute things but yet they dont buy!

Answer 1

First I need to apologize that this is such a long reply but so many things you've stated makes me want to bring up a few options. There are no single answers.

Rather than radio advertising to reach a specific market, redirect that budget to targeting larger sized people whether that's at Weight Watchers or the national group NAAFA or similar organizations in your area. You may want to purchase a mailing list and branch out slightly into other zip codes besides your own.

A website might be a good idea but realize that is then targeting female computer users who are plus sized which narrows your market but expands your territory to now offer 24/7 access to your online store and make it available around the globe. The costs are minimal compared to your current rent, utilities, inventory, taxes, etc. Look into it. You can do an Ebay or Prostores.com store very inexpensively... even free for a trial period.

Reducing your costs will increase your profitability. Look at your current expenses and see if you might be overpaying for certain things. Taxes, advertising and professional fees might be good areas of concentration. Make sure your accountant is giving you 100% of the tax benefits you are entitled to for deductible expenses. Do you have other family members you can hire to pass out flyers, mail envelopes, wash the floors??? Are you offering a SEP or other tax deferred retirement plan and medical benefits to employees and owners? Your accountant can help with this questions.

You can get free entrepreneual advice from organizations like SCORE and SBA. (http://www.score.org - http://www.sba.gov)

Have you considered adding a portion of the store to a resale niche? You can boost profits by taking a commission from people looking to sell old clothes as they fluctuate in sizes or want more for less. Try a small area to test the concept. You can always donate unsold merchandise to charity after a few months if the concept doesn't attract people.

Partner with other related businesses. You can pass out coupons or flyers for other businesses and they can pass out coupons or flyers for your store. Hang eye catching fliers at local stores with community bulletin boards. Get permission but the space is usually free.

Are you surveying your current customers to learn why they are not buying? Get a $25 AmEx gift certificate as a prize and ask customers to register to win it. Ask about store experiences, pricing, selection, etc. That'll be the best $25 you invest in your business. Don't give yes or no questions... dig into the customer. You will also develop your newsletter mailing list that way by asking for name/address/phone... and email.

Check out the library for books like "Marketing without Money" by Nicholas E Bade. He's got some good tips online and offline.

Consider accessory sales besides purses, gloves and such... what about cookbooks or titles of interest to plus size customers?

Do you or your Mom have knowledge that you can host seminars? Your library would certainly feature you as a speaker which will boost your credibility in the community? Have you thought about writing a book on whatever subjects???

Are you making it easy for customers to buy from you? Do you take credit cards? Do you post a money back guarantee on your items? Are you offering anything to customers to refer you to others???

When was the last time you examined your business plan??? Do you even HAVE a business plan? You cannot reach any destination (success?) without a roadmap that you constantly check to insure that you're still on track.

Finally, consider adding new vendors and notify your customers of those offerings. Branding sells ... are you getting your brand out there to the right people???

Answer 2

You might have to re-do a market research. Although your products sounds good, I think that you started the business at the wrong palce. I get the feeling that Kansas city does not have a lot of plus size women, which is why you are having problems.

Go to a place known for having a higher percentage of plus size women, I don't think Kansas city is one of them. At least, the last time I was there, I didn't see as many as I do in other parts of the USA. Therefore, you might want to change your location or change your products. If not add some products that will cater to both plus size and regular size women.

Also, if people are saying your products are good, but are not buying, then, there could be a problem with your pricing. Perhaps you are charging too much for your target market to afford. You might have to give incentives to your customers.

Also, you might want to review your advertisements. Perhaps the ads are not effective--you need to get a focus group to research if it is effective or not. Or perhaps you ads are being shown at the wrong time of the day, when it can't reach your target market.You could also start online selling at website like amazon or eBay to help boost your sales and expand your business to people outside of Kansas city.

Answer 3

I bought a small business 1-1/2 years ago when I bought the company it was not making money, this year it made $70,000 and I paid myself $60,000.

Just before I bought the company an accountant said to me “the most important thing about running a small business, any small business, is KEEPING YOUR COST LOW” I remembered that and worked very hard to do just that and it has worked.

Take a hard look at all of your expenses leave no stone unturned, if you have staff, let them go and put in the hours yourself, think about creative ways to advertise for less like leafletting car windows. Every dollar you don’t spend is $10 you don’t need to sell.

That is my general business advise, now my opinion about your specific business.

It seems to me from what you’ve said that you might have too broad a range of merchandise. I’m not in retail but I believe conventional wisdom says “don’t try to compete with Wallmart, you will lose”.

Look back over the last two years what has sold the best, maybe it was accessories for your more mature customers if so focus on that.

Do your best to build the kind of business you want but also try to watch where the business is leading you and follow it’s lead.

Something like 95% of the American economy is small businesses, we all know exactly what you going through, you are so not alone, work hard and watch the money. You’ve made it two years don’t give up now.

I wish you and your mom all the best.

Answer 4

You need to advertise on the web also.
Like EBay or Amazon, if anything you can sell the clothes that come out of season.
Good Luck.

Answer 5

get insurance. burn that bastard to teh ground.