What a great concept!  When I think of clothing that’s made to measure I think of men’s tailored suits or women’s couture gowns.  I don’t typically think about a functional, beautiful item of clothing for my own personal use.  I do now, however. 

Last year, I was wandering around the West Hollywood/3^rd Street area and came across a beautiful boutique.  I walked in and was taken with all of the beautiful fabrics and designs hanging from the racks.  While there were many dresses, sweaters and tops to choose from, each item hung neatly from a rack and nothing was cramped or crowded.  The sales floor was open and spacious and the accessories were carefully chosen and displayed in tasteful, functional cases.  If you’ve ever studied retail merchandising, you’ll understand why I was so blown away by this store.  If not, let me summarize…the art of retailing is more like a science.  You need to know how best to display your products to their full advantage.  Your customers need to walk into your store and flow easily and naturally through the entire space.  They should be able to see your products in a logical way without having to dig through racks or piles of clothing.  And best of all, they need to be able to see themselves in your products and, if you’re selling accessories as well, how best to accessorize their outfits. 

I wandered through the store and the sales clerk let me take my time before asking me if I had ever been to this store before.  When I replied “No,” she said something like “let me explain our concept to you…” “OK,” I thought…”what’s your concept?”  She informed me that the tops and dresses were available in a variety of fabrics, so if I found one I liked but they didn’t have my size or the fabric I wanted, one could be made for me within a short period.  If you read this blog, you know me… I’m a fan of anyone who is producing locally, so of course I was excited by the idea.  Now I just had to find a dress or two.  I found several, tried them on and found one I really liked.  It was a bit too long, but the sales clerk mentioned that they would have it altered for me.  Great customer service, I thought, but actually the store is called “Masse Made to Measure” so it is actually part of their concept.  Needless to say, I bought the dress.

Here’s the thing, every time I’ve been out shopping for a dress, I always come back to Melissa Masse and Masse Made to Measure.  Why?  Because I’m not someone who can buy a dress off the rack and expect it to fit me perfectly.  I’m petite and find dresses in the Petite section don’t always fit the way they should and dresses in the Regular section are always too long.  Now I get a dress that’s custom fit to my body.  Better yet, I might find a silhouette I like but in a print or color that’s not my taste.  Now I can pick the fabric or color I want.  Yes, I know I’m going to pay a bit more, but I’m more than happy to do so.  I’m supporting a local business that is manufacturing locally and employing skilled workers in the garment industry.  It’s a win-win prospect, if you ask me.

The last time I was in the store, Melissa Masse was there as well.  I was happy to meet her and have a chance to find out more about her and how she came up with the concept for her store.  “When my friends complained that they couldn’t find anything in the stores that they liked, or more importantly, anything that fit them properly, I realized that they couldn’t be the only customers who felt that way.” I couldn’t agree with her more.  

Trying to figure out your next steps in the apparel industry?  Check out our upcoming seminars or come by during Textile Week September 27 – 29 for free seminars, networking and more.  Fashion Business, Inc. is located at the California Market Center 110 East 9^th Street, Suite C786, Los Angeles, CA 90079

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated.  Email:  jill@fashionbizinc.org

The other day I had an interesting conversation with the owner of an apparel company.  The subject of budgets and plans came up.  Or, maybe I should say, I brought up the subject of budgets and plans and asked him how he was planning and budgeting.  His response was “Well, I kind of come up with my budget for the year and forget about it until next year when I have to plan it all over again.”  Talk about lost opportunities!  So I asked him what he used to create a sales plan.  His response was “Well, I kind of have a number in my head and that’s what I use.”  Then I asked him if he communicates this sales plan to his sales and merchandising team.  His response was “Not really.  The design and merchandising team builds the line and the sales team sells it.”  Oh, dear. 

I’ve known this guy for a long time and he does relatively well in his market space.  His sales volume is between 12 – 15 million, so he’s not really in the Big Leagues, but he has a great opportunity here to get much greater control and understanding of his business than I think he realizes.  No business is too small to take advantage of this relatively simple function called “Planning.”

Step one:  Start with a budget.  Be realistic about what you need for your operating costs, salaries, overhead, insurances, rent, materials, etc.  If you have never built a budget like this, take a few hours to meet with your accountant – What!?!?  No Accountant?!?!?  Seriously?  O.K. start the process by working with an accountant to build a financial plan.  You really need this, more than I can tell you in a blog.  In order to truly understand your business all the way down to the gross margin level, you need a financial plan.  You need to know your expenses in order to understand how to cost your products and how to determine your true gross margin after all is said and done. 

Step two:  Build a financial plan based on what you think your company will be able to sell and be realistic!  If you’re a 5 million dollar company this year, don’t expect to hit 20 million next year.  Analyze this year’s sales versus last year’s sales.  Have you added customers or lost customers?  Have you added market share or lost market share?  Now think about what next year’s realistic goal should be.  Are you looking to add product categories?  Will that open new doors for you?  Or are you expecting to do about the same as last year.  Neither of these is the wrong answer, by the way,  you just need to know how to plan.

Step three:  Work with your sales team to create a sales plan.  How can they plan to meet your sales goals?  What do they need to do?  Continue business as usual? Open 10 new accounts each at a dollar volume of 20,000 per account?  Let them know what you’d LIKE to see and have them come back to you with what they see.  Oh, and perhaps you can tie some of their compensation to meeting the sales goals you both establish?  This way, they’re just as invested in the business as you are.

Step four:  Work with the design and merchandising team to develop a merchandising plan that meets the needs of the sales team.  If sales thinks they can sell the heck out of dresses but pants and skirts are trending down and your designers are only designing pants and skirts, maybe you need to stop and review everything before moving forward.  The goal of a merchandising plan is to give the design team an understanding of what types of product, categories and price points they should be building to meet the needs of the customers. 

By tying the merchandising plan to the sales plan and the sales plan to the financial plan, you start to see how the business works toward a common goal – profitability.  Everyone likes to be profitable, no?  Now, when it comes to planning for the next year, you’ll know what your expenses are, you’ll know what your gross margins are and you can start thinking about what the next steps for your business should be.  Raises, anyone?  New office space?  Better computer systems?  At least now you’ll know if you can afford any or all of that. 

Looking for accounting or financial planning help?  Check out the FBI’s list of consultants and financial services. 

I recently had the opportunity to speak with Kelli Nelson of FindFashionRep.com to discuss how she came up with the idea for this terrific website.  FindFashionRep.com provides designers and manufacturers with the information they need to make informed decisions when looking for sales representation.  Using the service is very simple.  Kelli has done all the work to make the process as painless as possible.  A designer or manufacturer logs into the site, answers a few questions about the type of product, the target market, price points, etc.  After selecting a territory a list of suitable reps is provided.  The designer or manufacturer can then view the other lines being offered by each rep to help determine if their products would be a good complement to the existing offering.  It may take several tries to find the right rep, but once the designer or manufacturer selects a rep they will receive contact information, price points and product descriptions of the other lines.

What Kelli has done is take the guess work and the leg work out of finding quality sales representation across the U. S.  It’s hard to imagine how much time and energy it must have taken her to develop this database, let alone the time it takes to keep it up to date.  Sales reps are encouraged to update their line lists, price points and other relevant information on a regular basis in order to make FindFashionRep.com the most comprehensive of its kind. 

New FBI member Kelli Nelson got her start in the fashion industry in 1988, while still in college.  Working as an assistant sales rep to the West Coast sales manager of Z. Cavaricci, Kelli learned the ins and outs of representing a major brand to retailers of all sizes.  She quickly moved up the ranks at Z. Cavaricci, acquiring more responsibility and more skills.  Kelli started her own company, In Harmony, in 1995.  Using the knowledge she acquired at Z. Cavaricci, she built In Harmony into a multi-million dollar business.  The one issue that always nagged at her was how to find the right sales representation for her brand.  “It’s not enough to know a few good sales reps,” Kelli said in our interview “it’s about finding the right rep for your product.”  The trick to finding a great rep is understanding the labels or products they carry and who they are able to sell to.  Unless she flew to a specific sales territory she would spend countless hours on the phone trying to locate good reps through recommendations and referrals that were already closely aligned with her target stores. 

 In 2006, Kelli decided to start compiling an extensive database of independent sales reps in the 12 major U. S. fashion markets.  Her goal was to cover all categories of mens, womens and childrens clothing and accessories across all major U. S. markets. Many hours of work went into developing what is now known as www.FindFashionRep.com

We’re excited to have Kelli on board as a new FBI member.  I encourage you to check out her site and services.  It’s a great idea and long overdue.

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated.  Email:  jill@fashionbizinc.org

Fashion Business, Inc. is asking for your input to help us conduct a study of the apparel, footwear, textile and accessory industries. Specifically, how the recession has affected job opportunities within these industries over the past 12 months.

We’d like to know a few things about your business. This study is anonymous – any information you include about your business will be kept confidential and only used for data gathering purposes. We will be happy to provide you with the results of the study, should you so desire. Please indicate this on your response, along with your email address.

1: What is your sales volume today (in dollars)?

2: Over the past 12 months what percentage of your sales volume has increased or decreased?

3: In the past 12 months, have you had any layoffs or reductions in staff? If so, how many people or percentage of your work force.

4: In the past 12 months, have you hired staff for any existing positions?

5: In the past 12 months, have you hired staff for any newly created positions?

Thank you very much for your time today. Your help is greatly appreciated.

Jill Mazur

Independent Apparel and Business Consultant

Email: jill@fashionbizinc.org

Fashion showrooms and sales reps are paid as a result of the quantity they sell.  It’s no wonder they may be a little territorial.  Most showrooms require all the sales made in their assigned territory to come through them…regardless of how or when they were acquired.

For example…let’s say you’ve launched your line yourself…scored some great orders at MAGIC or another trade show and even used your frequent shopping habits at some local boutiques to help land your line on their shelves.  Even better you may know someone..who knows someone who can get your line in some major department stores.

Here’s the deal….When you sign on with a showroom or sales rep they’ll normally request that you hand over all information on sales that have happened in their territory.  And Yes…the commission as well.  Are you still listening?

For most of you who know the excruciating hustle of getting your own sales, handing them off may seem incredibly painful…not to mention terribly unfair.  However, this untimely transfer can in fact work to your advantage.

By handing some key accounts off to your showroom right from the start you can…..

1. Build Your Own Momentum– By already having some orders before you sign on with a showroom you’ve just given them a running start.  Sometimes showrooms end up dropping new lines rather quickly because they just can’t manage to get them off the ground.  They are leery about investing too much time in an untested line because they’re busy paying the bills with some proven staples (You can’t really blame them.)  However by handing off your existing contacts you could be giving your showroom just the motivation they need to keep hope alive.

2. Put Your New Team to Work on the Bottom Line–Your sales rep’s commissions shouldn’t be collected until the order is shipped and preferably the final payment has been collected.  So although you may have landed a fat order– unless the total cycle has been completed it would be premature to count it as money in the bank.  By handing accounts over to your showroom asap they may be able to warn you about stores with bad credit or reputations you may not want to produce for…. or they may be able to use their leverage in the industry to help ensure you collect on time.

3.  Show Your Retailers….How Good It Looks to Be Seamless–Your retailers need to see you and your showroom as a seamless entity.  As soon as your showroom comes into the picture they should be reaching out to your existing customers, soliciting re-orders, building trust, following up on delivery dates and putting their sales magic to work.  Customers hate confusion…do I talk to you? her? both?  Who do I call with a problem?  To reorder?  Set up the relationship between your showroom and customers immediately so they know they’ll be taken care of for whatever they need.

Don’t let your ego get away with you when it comes to handing off your accounts to your showroom.  While their may be instances where you may want to question this hand-off such as teritory or outreach issues– but for the most part you will probably just have to get with the program.  You’re simply handing off the job (and yes the commissions:( to someone else on your team.  If you’re going to do it…do it with a smile.  It can be a good thing…

Although some retailers love the excitement of new lines… many pause when it comes to actually buying them.  Why?  Because investing too much into a new line can make buyers feel a little bit like test dummies as manufacturers try to work out the common kinks associated with a new business.

If you’re trying to sell your line for the first time it’s up to you to alleviate their fears– and land some of those high-profile stores that can help you build your emerging brand.

Retailer Fear #1:  You Won’t Deliver On Time…

On time delivery is a big deal to retailers.  You may think what’s a few days late?  I mean things happen… Your patternmaker got the flu…The fabric got delayed in customs….retailers are human…they should understand right?

Unfortunately most times retailers don’t understand.  If you don’t deliver on time as far as retailers are concerned they’ve lost out on days of sale, especially in a highly seasonal business like swim or outerwear.  Besides, having a trump tight infrastructure to make sure you have everything in place to be within your promised delivery window, also do whatever you can to rectify the situation if it becomes inevitable.  Volunteer a discount, Pay for Express Shipping or Offer to subsidize any necessary markdowns for the season.  Keep in mind you don’t really want to do any of these things…So just be on time!

Retailer Fear #2:  Your Product Won’t Sell…

Retailers need to know what you’re doing to promote your line…after you’ve sold it to them.  Do you have a full website with pics of your in-store collection?  A online store locator?  How about a publicist?  A dedicated marketing person?  Any press out there already?  Do you have ideas for an in-store event? Make it clear to potential customers that you will be there to help ensure your product sells.  They’ll appreciate your insight into their challenges and your partnership in the sales process.

Retailer Fear #3:  You Don’t Know What You’re Doing…

Serious retailers want to feel secure they’re dealing with another serious business owner.  Are you going to deliver crappy product?  Will it look like the samples?  If there’s an issue will you be fair about resolving it?  Will you be around next season?  In the process of selling your goods…make sure you sell yourself too.  Do you have a design or production background with a more notable company?  Graduate from a prominent design program? Do you have company values or a mission statement?  Do your part to make your customer comfortable with your brand and the people behind it.

By being pro-active and understanding buyers common fears ahead of time, you’ll not only be able to get in the door, but build a foundation for a long-term professional relationship.

There are a lot of trade shows out there…From Magic to Pool to Project to Curve to WSA to ENK to Designers and Agents to Thread…and the list goes on and on and on….

So how in the world would you know what show is right for you?

Take the season before to shop around. Here are a few tips to get you started…..

1.  Research Trade Shows on the Web–To get started finding the show that is right for you visit an industry specific site like infomat.com, which lists most of the fashion related trade shows.  You can also do a simple google search for your specific category (i.e. shoes, lingerie, kids).  Then logon to the shows website to see screen shots of past shows.  Some sites also show lists of past attendees–so check for your competitors.  If they are there… it could be a clue you should be too.

2.  Call the Corporate Office–The office of the show is there to sell booths.  And if you have the money to do a trade show you are their target market.  Give them a call to get more details about the past and upcoming markets.  Ask about past traffic?  Marketing and PR Opportunities?  as well as Participation and booth building fees (if required).

3.  Go Visit–Once you’ve identified some shows that may be right for you go for a visit a season ahead.  Although the traffic may be different depending on the season you can still get a feel of whether the vibe of the show suits your style.  Again take advantage of the show’s sales offices…ask them to give you a tour as well as provide you with a pass to wander around by yourself.

As with anything else make sure you seek out some objective sources whether in person, old newspaper reports or blogs that give you an inside look at the shows you’re considering.  Shows can be very expensive…doing your research in advance will help you feel confident you’re making the right decision for your finances and your brand.

Happy Show Hunting!

The credit industry is known for the classic bait and switch.  They could get you hooked in on a 2.5% rate and 3 bills later that rate could jump to 5%…and even worse you could be locked into a contract.

It’s best to have a working relationship with your credit card processor or bank so everything you need to know isn’t simply written in 2 point font.

One of the most important considerations in choosing a processor, next to their rate competitiveness is the value of their customer service.  Is their someone you can speak to?  What if their is a dispute?  Can someone explain the most economical plans for a business like yours?

Although the value of this relationship can be often overlooked…it’s important to see your credit card processor as the gatekeeper to your money.  If something happens will they be around to help you out?

How do you get in front of buyers without a trade show?

A trade event is a good opportunity because its typically the kick-off of a sales season and gives buyers a one-stop shop to see a lot of lines.

But if you can’t participate in a trade show you can still dedicate your resources to getting in front of buyers–minus the clutter of the crowd.

To do this you will either need to hire an independent sales rep or someone to do your sales in-house.

Some times people do their own sales and that is an option as well..at times a grueling one with everything else a business owner has to do, but an option just the same.

So how does this rep get your line in front of buyers?  Well the right rep for you will have contacts with the stores your want to be in..so they can sell them on your product.

If you’re doing your own sales or dealing with a rep without the contacts you need you’ll basically have to send marketing materials, reach out and make appointments to visit a buyer at their office or store.

Attending the Vegas shows later this month?  What should you be doing now?

Besides working on your samples and dealing with show logistics, focus on your marketing.

Here’s a few tips…

1.  Mail and Email out Reminder Postcards: Make sure you include a knockout image of your product, your booth number and earliest delivery dates.

2.  Call Your Top Prospects: Although you may not have time to call every store on your prospective list, at least reach out to the top 20%.  And if you’re a little squeemish about making calls just know in these days of email and text messaging you’re not the only one. A simple call can make a big difference in helping you stand out from the competition.

3.  Don’t Forget the Press: The consumer and trade press go to the shows as well, and its a great time to get their attention.  See if the show you are attending has a list of past press attendees and send them your media kits to them in advance.