Screw Loose Business

Business Idea of the Day: Discount clothing store

July 25th, 2007

Have you ever thought about selling name brand clothes, but don’t have enough to buy the inventory? Here’s an idea: buy cheap, sell at discounts. Here is what you have to do:

• Find the merchandise. You won’t believe the sheer amount of name brand clothes you can find cheap. Many of the major retail outlets such as Target, Macy’s, Nordstrom (just to name a few) periodically liquidate their inventory so they can buy up new stuff. Much of these products are bought by liquidation companies in bulk, who then sell it off to anyone who is interested. It’s not unusual to see shirts that you would usually see in stores for $40, being sold by liquidation companies for $5. Usually these items come in large mixed pallets, so be sure to know whats included in them. Another great place to find overstock and liquidation clothing is Liquidation.com. This is an auction site that caters to B2B, so you can find a wide range of products here from clothing to computers. Just make sure you get the shipping quotes as most of the packages are usually very heavy.
• Find a store. Normally, a discount store would be great in an urban area or shopping center with a decent amount of traffic going back and forth. Find a place you can lease at a reasonable price, and remember to negotiate it as much as you can. The lower the price for space, the more profits in your pocket. Make sure it has good display space in the front, so you can showcase your products and the store to the people outside.
• Marketing. Hold periodic sales store-wide. This is a great way to liquidate your own merchandise (at a reasonable profit), plus pull in more customers who will love to get discounts on already discounted items.

Start up can vary, ranging from $2000-$10,000, depending on how much inventory you wish to initially carry, plus the rent, fixtures, Point-of-Sales equipment etc. Make sure you create a business and budget plan prior to getting started.

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