Start Up Kids Line

Setting up shop for the first time

June 30th, 2010

I’ve had the same  “how’s business” conversation with numerous people in the last week – and in all of those conversations, we’ve ended up talking about the difference between those boutiques that survived and those that didn’t survive over the last couple of years.  I’ve also realized that I’ve learned from first hand experience why some boutiques do better than others, and I thought if I shared my thoughts, it might help a lot when you are first setting up your sure-to-be-gorgeous boutique.

Location, Location, Location

One of our first retailers to go out of business had an absolutely quaint boutique. It was setup in  a little craftsman’s cottage, and each room had a unique theme, such as stationary, toys, baby clothes, etc. Great layout for the store itself. But, for it to be in a cottage pretty much put it in the middle of a neighborhood. The owner told me when she had decided to close up shop, that her foot traffic had gone from about 30 people a day to four or five people a day. when I paid her my first visit,  I remember being somewhat shocked that shops existed in that area at all.  And I’ve lived in the San Diego area for years!

The trend continued, those shops that were setup in “unique” areas were consistently some of the first to close. Hand-select your location, consider the reputation of the area – hang out and watch how much traffic comes by…”we thought we were in a great spot in this newer strip mall, but we are off in the corner and there is virtually NO traffic.” – from a boutique owner that mostly pulled through but just quit.

Keep it simple

People do not like to walk into an over-crowded boutique. People like to walk into a boutique that they know has hand-selected the best of the best for them already. Too many options and you start to overwhelm the senses, start to lean towards a more “discount store” type of atmosphere. I think that buyers start to think “if I offer more options that will save me”.

I think the opposite is true – offer fewer, absolutely perfect, options, and you’ll create a loyal following.  We had a retailer in a very touristy area of town – as she got more desperate for sales, she kept piling more stuff in her store  (adding to her costs too mind you – the more inventory you carry the more money you have that is just sitting around, not making money for you).

The last time I stopped by, she had added buckets of plastic $5 and under trinket toys  – saying to me “this seems to be all people are willing to pay for in this area”.  She couldn’t see that when people walked in, there was no rhyme or reason to her selection – there was nothing that said “THIS is the superb style you can count on finding here”  – instead it said “we have a little of everything, search around and see if there is anything good”.

Your style

In the end, the selection offered by a boutique comes down a lot to the style preferences of the owner or buyer. As a buyer, you need to know your style, need to know that your customers look to you to tell them what is cool, beautiful, unique, the next “it” product.  They want you to do the work for them. Make sure your boutique has a cohesive look and feel that matches the product selection, and says exactly who you are….trust that you went into this business because you have ideas about what people “are really looking for”, and then offer it to them.

Mind Set
In the end, the attitude of the owner is what makes the biggest difference between survival and giving up. When I was in the thick of doing sales, I got to the point where I could almost tell by the tone of voice when the buyer said “hello” whether it was a good avenue to pursue or not. You would not believe how many sob stories I would get right off the bat. Which isn’t to say that those with the “right” mind set weren’t realistic  – it’s just that they always start with a positive note in their voice and end with an “but there’s no question, we’re making it through this.”  I don’t care how cheezy it sounds, success starts (or ends) with your state-of-mind, your ability to visualize, and how much fight you have in your spirit.

Learn, learn, learn
I have learned so much just by visiting so many boutiques over the last few years. You should do this too – visit baby boutiques that you know have a great reputation, take note of how MUCH product they carry, their price points, how long they’ve been in business, their location. I bet the ones that have been around the longest have a relatively simple selection, are in the “hot shopping districts” in town, and have spent time building a reputation for excellent customer service and top-notch style and trend spotting.

Selling to boutiques

Because I was just starting out, I was more than happy to have our product in all the boutiques that I talked about above…but I really shouldn’t have been. What boutiques your products are spotted in matters a lot to your brand. It also matters a lot to your time and ROI. Focus on getting into established boutiques but don’t ignore the new ones either. Sometimes, a new boutique nails all of the necessary criteria to be the new “it” boutique in town. Just make sure it’s a boutique you’re proud to see your product in.

Entry Filed under: The Startup Phase,The Tools You Need