Creating your in-store brand will be an important tool. Strong private label brands can’t be overstated. Consider Sears — the struggling department store that has been closing stores at an alarming rate but, its store brands remain valuable. The company sold their Craftsman brand for roughly $900 million. It hit me one day while shopping at Costco. I trust their brand I will buy their products. How do I create this in my own business? Answer: Private Labels!

Private label is suddenly poised to be a big deal! Perception of quality is evolving. Private labels allow stores to offer their customers lower prices, which can help drive much needed traffic. Even at a lower price, you have a much better margin. Private labels limit a customer’s ability to price shop. Ultimately giving you an advantage on your competitors.

Let’s look at the figures………

Prior to going all private label, I bought from major designers. I am only going to use one in this equation but, I typically bought from 3 designers. Ultimately tripling the numbers.

With brand A I carried 3 lines. Wholesale pricing ranged from the low end of $499 to high end $1500. My minimum for all three lines were 50 pieces per year! This cost me approximately $51,552 per year just for samples! Off the bat I had to sell 50 dresses just to break even.

Then there was the dreaded delivery from this company they would send you $100,000 worth of specials all at once (typically they sent dresses that were for weddings 10 months away while I stressed over the one, I needed for this week)!

I was fed up! I just didn’t want to play the game. My store is small and has always been what I consider to be successful but, I just wanted to quit! I didn’t love it anymore.

I started working on how to make my own label and soon realized that the costs were 4x what the designers wanted in minimums. I couldn’t produce the numbers in sales and then I would have to wholesale to other stores to make this work. That was a whole new project I didn’t want to take on. Then I started researching private labels insert Lux and Love.

Low annual minimums and 4x markup! Meeting my minimums meant buying 8 dresses with an approximate cost of $2720*. At a 4x markup I had to sell 2.66 dresses to break even. If I really needed 50 dresses per year in my store it would cost me $17,500 (17.15 dresses to break even).

I needed to offer my brides something different. I got tired of “I tried this on at another store”.

Now I pay for my dresses up front, when I take a 50% deposit, I have already made a profit and when the balance is paid it is free and clear money!

Lux and Love has been a saving grace for my bridal shop!!!

~Zerlinda

*based on an average dress cost of $340