3 Reasons Why Your Retail Fashion Store Isn't Profitable

Running a retail fashion boutique is a fun and highly rewarding experience that gives you the opportunity to express your creative side through fashion. If you the type of individual who's always on the lookout for the next trend in fashion, then you should consider this line of work. People are always in need of new clothes, so this is somewhat of a recession-proof industry. Unfortunately, though, many newcomers to the retail fashion world take the wrong approach towards their business, resulting in little-to-no profit. In order to run a successful fashion store, you must work on earning more money than you spend; otherwise, you'll continue to remain in the red without a truly sustainable business model.

Reason #1 - Poor Location

Is your retail fashion store tucked away in some dark alley that's hard to find? Sure, you might save a couple bucks on your lease by opening a store here, but it will also make it increasingly difficult for customers to find. The bottom line is that your retail fashion store needs to be located in a prime shopping area that's easy to see and access from a major road. If people can see your store from the road, you can take advantage of this by using a large and prominent sign to help attract them. For the price, leasing a store that's close to a major road or highway is well worth the investment in the long run.

Reason #2 - Pricing Too Low/High

Unless your store's garments are prices just right, you probably won't turn a profit. Pricing your garments too low will likely result in you not making any profit off the transaction. On the other hand, pricing your store's garments too high will discourage customers from buying. So, how do you know what to price the products in your store? Unfortunately, there's really no easy answer to this question, as it will depend on a variety of different factors. The single most important factor, however, is to price them high enough so you are making a profit on each transaction; otherwise, it's not worth your time and energy to sell the item.

Reason #3 - Not Creating an "Edge"

The secret to running a successful and profitable retail fashion store is to give yourself an edge. By this I mean something that makes your store stand out from the competing fashion stores around your area. Let's face it, you probably aren't the only store in town that sells garments and/or accessories. Therefore, you must set yourself apart by having a unique edge. Perhaps you can decorate your store in trendy modern designs, or you can give your store a uniquely brandable name that's easy to remember. These are just a couple of the many ways to create an edge for your retail fashion store.