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Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

It's My Company, Why Did My Board Fire Me?!?!?

Posted by fashionentrepreneurreport On Wednesday, April 14, 2010 0 comments
Entrepreneurs have to stay strong in a competitive environment, but what do you do when you get fired from your own board?  New York Entrepreneur Week April 2010 brought together a panel of experts to provide their experiences with sourcing a board.  

Expert Panelists: 
Rick Kushel, CEO of iLevel Solutions 
Joe Allegra, General Partner at Edison Venture Fund
Gil Beyda, Managing Director of Genacast Capital 

Venture funds invest in companies in hopes to grow success for their future.  Understanding your voting rights and the boards rights on your term sheet is crucial for your success.  Joe Allegra said, "Typically when we invest in companies, we don't want to invest if we don't feel the CEO can take us for 2-4 years".  Entrepreneurs must realize that the roles of being their own employee and CEO can become a conflict.  There has to be a balance between the two roles.

A really great business model and the willpower behind it is completely necessary.  Gil Beyda stated, "A successful start is more or less 1% a good idea, and 99% a good execution".  Your ideas must have validity but at the end of the day investors admit that they fall in love with the entrepreneur.  If they don't feel a connection with you and believe they can work with you, they simple won't commit to you.

"The CEO and the venture fund is a marriage", said Rick Kushel.  The relationship is not just between the CEO and the venture fund but also within the team.  You need to keep the information open between you and your team and understand the make-up from your founder team.  It's also important for the board to openly understand their specific roles.  "We usually like to see the chairman as the CEO, as to make no mistake on who the leader of the company is", said Joe Allegra.

The underlying reason for venture funds is to invest in companies to grow them.  They make honest decision based on the best interest of your company.  There are obvious benefits of having a board, but the key is to control those benefits. 

But, what do you do if you're following these tips and before you know it, your own board has let you go?  Advice from the experts: Realign yourself with the goals of your company.  Transfer the goodwill you've built up between your employees and plant it within your organization. 

- Katie Evans

Do You Manipulate or Do You Inspire?

Posted by fashionentrepreneurreport On Tuesday, April 13, 2010 0 comments
Simon Sinek, author of "Start With Why", joined New York Entrepreneur Week April 2010 to teach entrepreneurs to inspire instead of manipulate.  His model of success reflects the simplicity of asking "Why, How, What".

Why: Sinek says, "We follow those who lead, not for them but for ourselves, we follow those who lead not because we have to but because we want to".  First, start with the WHY to determine what you're trying to accomplish because these are the questions that distinguish long term entrepreneurs and businesses from the ones that fail.

How: This is the strategy that guides principles and actions to form a path that will take in pursuit of your WHY.  This step is literal because your actions should directly reflect your personal beliefs and values.  This stage starts developing your WHY into something tangible.  You will start forming lasting partnerships while finding customers and clients who believe in your mission.

What: This is your vision.  As an entrepreneur, it's your responsibility to inspire others.  To achieve that goal, you need to be able to solve your own problems, build the solution, scale it, and then get it to other people.  

Sinek stresses that everything you do should prove your personal beliefs while directly lining up with your actions.  We live in a tangible world.  If we want to be authentic individuals, we have to actually do what we believe.  This is your best selling strategy.  People will want to join your cause since you will be a walking model of your beliefs.  

It's important for entrepreneurs to keep their passion at the forefront of their business plans.  "Find your passion and the money will follow" says Sinek.  If you're not inspiring others, there's a high change you're manipulating them.  Be transparent: Think, act, and communicate from the inside out. 


- Katie Evans

Calling all European Entrepreneurs!

Posted by fashionentrepreneurreport On Monday, March 29, 2010 0 comments

Attend the Programme
Developed by entrepreneurs for entrepreneurs, Astia's Doing it Right programme is about delivering results in every area of your business, from accelerating funding to accessing expertise when you need it. If you want to know what to say to investors and how you say it, who better to ask than an active investor? They'll be there but that is just the beginning. At Doing it Right, you'll cultivate invaluable relationships with key players and get straight talk from leading experts on developing strategies that support high growth.
Sponsored by key corporations including Microsoft, Cisco, Morrison & Foerster, Osborne Clarke, Silicon Valley Bank and BDO LLP, Astia is endorsed by The British Private Equity and Venture Capital Association and presented in collaboration with The Next Women.
The Entrepreneurs' Perspective
"Our involvement in the Astia Doing it Right programme and Investor Forum in London has been fundamental to our business", commented Elinor Olisa, Co-founder of DegreeArt.com, a UK-based online portal for buyers interested in acquiring art from emerging artists. "We recommend Astia without a moment's hesitation. It is a one of a kind programme that is absolutely packed with essential guidance, lessons, networking opportunities and support."
Key Dates
15 April: Application Deadline
4-7 May: Doing it Right London Programme, including London Company Screening Day
24 June: London Investor Forum
About Astia
Astia is a global non-profit organisation built on a community of experts that provides innovative programmes to exceptional women-led start-ups. Headquartered in San Francisco, Astia delivers programmes for entrepreneurs in Silicon Valley, New York, London and, from late 2010, India. Focused on tangible proven results, Astia is well positioned to work with start-ups around the world as they access capital, grow their businesses, and develop the executive leadership of the women on the founding team. For more information visit our homepage, or contact katie@astia.org.

The Next Women is the first award-winning online Women's Business Magazine and Networking Forum, with a focus on start-ups and growing businesses led, founded or invested in by women.  It brings news on business, events, funding and tech from a female angle and interviews and profiles Female Internet Heroes, making them noteable and quotable.

Katie Nittler
COO, Astia
+44 (0) 203.356.9644 ext 2

The Price is Right

Posted by fashionentrepreneurreport On Monday, February 08, 2010 0 comments

Fashion Magazine Pricing 
Lucky’s June issue set a precedent for the magazine – it was the first time the editors dedicated an entire issue to products with retail prices of $100 or less.
  As a shopping magazine, the editors usually showcase the best finds on both ends of the spectrum – splurges and steals – but does an entire issue devoted to frugal fashions signal a sign of the times?
Historically, magazines such as Redbook, Ladies’ Home Journal and Woman’s Day cover clothing, shoes and accessories that are very price conscious; publications such as Lucky., Glamour and Marie Claire usually carry a mix of high and low price points; and publications, like WSJ., Harper’s Bazaar and Vogue focus on luxury items. However, as the economy shows no sign of improvement and consumers are still hesitating to spend their discretionary income on non-essential items, will Elle or InStyle follow in Lucky.’s footsteps and lower its average price points?
Internet Pricing“I find that higher end magazines, like Vogue and Harper’s Bazaar, still focus on luxury goods with high price points, while shopping magazines, like Lucky., feature goods at all price points,” said Ehmonie Hainey, editor in chief at What’s Haute magazine. Conversely, Kathryn Finney, Chief Shopping Officer at The Budget Fashionista, noticed that Harpers Bazaar’s price points have been trending lower for almost two years. Aspirational shopping will never go out of style and with magazines, blogs and e-zines presenting stylish options at affordable price points, it makes it easier for recessionistas to get that oh so desired look. “I think now, more than ever, editors and stylists are being held accountable for the price points of products that they shoot on page,” commented Zoey Washington, co-founder of little biRd style and former fashion editor at Essence.
“Editors at high-end magazines are now covering Wal-Mart, but in speaking with one editor, she’d never even been to a Wal-Mart,” said Finney. However, if retailers like Wal-Mart, T.J. Maxx and Target have the advertising dollars to spend, it only stands to reason that those stores will garner more coverage. “Before I think [price] was always an issue when it came to choosing the products,” noted Washington. “Now the idea of price points is the inspiration behind a story or photo shoot,” she concluded.
That inspiration has extended to online publications as well. Whereas, these outlets were often relegated to covering mainstream brands, or plus size clothing, designers and stylists are now accepting these publications because the editors link directly to the products. “Online magazines seem to focus more on a mix of high and low priced goods and I try to balance out price points when featuring a look, so readers can achieve at least some of the look,” said Hainey. “Also, I have found that designers are willing to send hi-res images or even goods on loan if I want to shoot the items myself,” she stated.
Target Pricing“Lately you see more and more high end labels being accessed by smaller, online publications, but where it really gets interesting is in the blogosphere,” Washington appraised. “Because of the growing influence of prominent fashion blogs and retail-zines, designers are really embracing online outlets because it translates into trackable sales,” she concluded.
Though the tide is definitely changing for coverage in print publications and online publications are gaining in popularity, we haven’t seen the last of traditional coverage or opulence in the pages of Vogue or Bazaar because high fashion has always influenced ready-to-wear. We’ll definitely see more balanced fashion spreads that include high and low end prices and misses and plus sized items. As the economic climate continues to adapt, so too will the people bringing us a little light at the end of this bleak tunnel.
Réal Hamilton-Romeo, Publicist and Writer, and Contributing Nolcha's Consumer Market Editor www.realhamiltonromeo.com 
Images by Bryna Faye Shields

Entering the International Platform: From the Business Plan and Beyond...

Posted by fashionentrepreneurreport On Monday, February 08, 2010 0 comments



City sketch
































ENHANCED PLATFORM OF THE BUSINESS PLAN


A small business can be so consuming that it is difficult for an owner to stand back and realize what their business really needs and specifically what it needs to take it to the international level.

Upon deciding whether to enter the international market, there are suggested steps to follow in order to be successful. Aside from having a stellar product or service, it is imperative to have the following also in place.


1. Up to date graphics and business presence online and offline
2. 
SEO INSERT HYPERLINK analysis for international entry
3. An executable electronic customer database
4. A Market Entry Strategy- direct sell/use of a international representative
.
By taking the time and finding the appropriate resources to invest in the various facets of the business, an entrepreneur can reap great return and an opportunity for growth. Some businesses may only informational websites that never really receive the finishing touches that would leave a strong impression; or maybe the site is need of facelift. To regain ROI, a primary part of the business plan should focus on bringing website graphics and technology up to date. Return on Investment (ROI) and the cost of advertising are areas where ROI should be outlined.
Some business owners view advertising as a business expense when it should really be considered an investment in your business, especially if you would like to benefit from repeat business. If you have a quality product or service, your customers should return again and again so you can afford to invest even more to attract new customers. As Elizabeth Kalmbac, a Media Buyer of Keely, Scott, and Madison explains, “Head above water doesn’t really do much when there are competitors who spend money on advertising.  Don’t be afraid to call traditional media outlets.  There is opening to local advertisers because there is space to fill.”  She continues “As technology changes, media planning changes.  There are now a million and one places to advertise, find out where your consumers are and establish relevance.”
Amy Minnick of Southern Jewelry News comments on innovative techniques of effective marketing outside of the box. She says, “Years ago, very few had a marketing budget or a marketing plan. But today most retailers realize the critical nature of keeping their name out there” She mentions how a jewelry designer in Chicago teamed up with an upscale steak house to create a specialty martini to pair with a jewelry pendant. Diners purchase the pairing off the menu. It’s a win-win, as the steak house now can claim it has the most expensive martini in town.

Many small businesses cut corners by trying to do everything in-house. As a result, the professional image can be compromised. For example, an unattractive website can actually detract from business if it lacks professionalism, if the content has grammatical errors, or if the site isn’t drawing traffic from search engines. A service business that doesn’t have a live person answering the phones at all times is definitely missing opportunities. Always make clear what your office hours are and then commit to having a live person answer the line during that time. Consumers are often fueled by instant gratification and if a prospective buyer ends up getting your voice mail, there’s a good chance they will move on and call a competitor.
With the advent of online business, the business plan has become more challenging to detail just as the “target” customer has become harder to pinpoint. Especially from a designer’s perspective, the “target” customer may only be one person if it’s haute couture and perhaps a small handful if designs are replicated. Also, you may have a representative that will showcase your line. Your demographic may not be as narrow as you think if your representative exhibits your products across many trade shows and press and media outlets. These are important factors to keep in mind when and if you are trying to readjust the traditional business plan. A small business can be so consuming that it is difficult for an owner to stand back and realize what their business really needs and specifically what it needs to take it to the international level.
David Brown President of Retail Edge Academy says, “The biggest difference between a successful store owner and an unsuccessful one is the ability of the owner to concentrate on the important rather than the urgent. That is, as an owner, to maximize profit, one should focus on the larger picture of business planning, not the mundane tasks that you could have an assistant or intern help with.”
Nowadays, with more entrepreneurs entering the business place, the business plan needs to incorporate more of the creative examples that are occurring in the industry. Embellish your plan as much as possible or have an appendix with like minded stories that help your business strategy. One of my favorite business stories is Big Buddha, an inspirational success story of a handbag designer that started selling handbags from his dorm room. His story shows that with a passion to sell one’s brand, without any professional training or experience in the industry, anything is possible.

City SketchFINANCIAL PLAN
One of the most important components of your business plan will require a clear sense of the financial part of of the business planning.
I can’t emphasize enough how powerful software is, and with the plethora of smart phones around these days, there is no excuse why you should not always know how to calculate your pricing and what your components cost you so that when you need to access your data, you know that it’s always accessible. Especially if going on buying trips overseas or on a buying trip for supplies, it will be an essential tool to access your business information within seconds. Microsoft Excel can create formulas to help you calculate your Gross Margins and your Net Income. (and if you are unfamiliar with how to use the software there are a lot of videos on Youtube that can help).  You can easily create spreadsheets to house all of your data and the tabs within each spreadsheet will enable you to hold a tremendous amount of data which can all be easily accessed on smart phones. Investing in a three-hour class could potentially save you countless hours of wasted time—hours that could be used to generate revenues!
Finally, keep in mind the competitive forces that can affect you bottom line. Some may not be as measurable, but always figure in any additional city or state taxes, duties, and other items that can change your net income. Make sure you have your State Resale number, which exempts State Sales Tax. This can save between 8 and 9% on your cost of goods.

International GlobeINTERNATIONAL BUSINESS TIPS
When considering doing business with parties overseas, you should learn the basics of business development specific to that country. So, whether it is joint venture, partnership, or licensing, be aware of all of the things that will impact whether you set up business trading in another country. Excellent business development skills particular to the region you are looking to import/export to will be essential. That is, find out the different arrangements that can be made within each country with regards to your type of business whether it be in manufacturing or intellectual property. Of course it helps to know the language and to have local contacts, but don’t limit yourself to textbook learning, go and develop local contacts. There are subtle social customs of how business deals are made which can only be experienced first hand and I’d suggest reaching out to any contacts you have and arranging a phone meeting with someone has experience with the particular type of trade you’d like to engage in. Learning key vocabulary words and talking to an experienced trade specialist could have on your business. Also, local chambers of commerce and also national consulates are a great resource for trade issues. Always keep in mind the currency you will be buying or selling in, whether you want that to always be US dollars or not, which would be dependant the expected strength of your preferred currency at the time of payment. In some cases, you may not have a choice, and will be expected to be paid in the local currency, so just be mindful of the risks involved in this sort of arrangement.

Another key element for international business it to make sure your e-commerce platform is set up for international ordering. Suppose you have received really great press and international media, and all of a sudden you have a customer in France that wants to buy your products. Well, take the extra time upfront to make sure your shopping cart is set up for international shipping and the appropriate tax structure for international shipping. Now days most of this is automated and your webmaster should be able to set this up on the backend.
If you are planning to sell overseas via a trade show or trunk show, one of the most important tenants in doing international business is that relationships are key.  More so than in the United States, so remember to be multi-disciplined in this regard. Also, don’t let not knowing a foreign language deter you. Translators are easily available and highly recommended these days. And can be a great resource for many of the legalities that might arise. And finally, do understand how to get through the red tape of each country with your specific industry. You don’t want a lawsuit that can put the company out of business because you didn’t do your homework. Setting up bank accounts in foreign countries is quite easy now and with online banking becoming the norm, it’s very easy to keep track of such accounts and to create wire transfers.
Here’s a great guide to doing business in India:http://www.stylusinc.com/business/india/cultural_tip1.htm
Rani Khamesra is an online business expert with experience in international trade and buying experience within the luxury jewelry industry. She has worked at Harry Winston as a Planning Analyst and is currently focused on generating awareness within the DIY niche of the wholesale jewelry hardware business. Also, Rani is the President of the Professional Women’s Alliance of New York City. Please follow Rani on her blog http://www.houseofindia.com/store/myblog.php or contact her at rani@houseofindia.com 

Confessions of a Recruiter

Posted by fashionentrepreneurreport On Monday, February 08, 2010 0 comments



Black and white legs








Since the onslaught of the “economic drop”, 24Seven Talent, a leader in the industry for fashion job placement has been inundated with questions and resumés from the community asking for jobs.
   While Nolcha is devoted to the Fashion Entrepreneur, the goal is to build and guide talented fashion professionals throughout their careers, whether they are ready to start their own label or not… therefore with the assistance of 24Seven themselves, below are tips for securing a job in fashion.
To start the job search process on needs a resumé.  This is the first thing anyone will see from you even before your face or your work.  Many fashion competitons and runway exhibitions require them as well, to be considered for acceptance, therefore a proper working resumé is essential no matter the position you desire.
It is important to select key words within the document as a lot of companies utilize an applicant tracking system that searches for key words.
Use action verbs, like "created", "managed", "implemented", designed", "presented" "integrated", "communicated", etc.
Include quantitative achievements, such as "increased sales by 10%", "managed staff of 10 designers overseas", "implemented a new process", etc.
Use resume builder as a tool for lay-out.  Please note that even though you are in a creative industry making your resume bold, larger than average, thick as a lookbook or generally unreadable with tricky fonts will not help your cause.  Be causious choose a font that is no smaller than 10pt and no larger than 12 pt.  Avoid lots of script and please do not choose a separate “Artistic Font” just for your name, it looks tacky and egocentric.
“Resume writing is a numbers game. Every keyword in your resume is a point towards hitting page one on a potential employer's search result.” – says Kathleen O'Grady, Director of Recruiting at 24 Seven ”and choosing the right words, she says, takes more than a few lucky guesses. It requires some homework to make sure the words you use lead you to your ideal job - or at least to the interview table."
When choosing the correct verbiage to summarize your skills, think less like a fashion professional and more like a Search Engine.  Both career sites (like www.monster.com), recruiters and human resources departments of your favorite fashion companies all start by looking for keywords throughout the thousands of resumes they receive, that fit the job they need filled.

pen writingHere are some basic guidelines rating your keywords: 
1. Keywords that most commonly describe the position title and industry segment you're applying for. (ie. Senior Designer, Marketing Director, Entertainment)
2. Experience listed as "preferred" or "required" skills in job descriptions, usually found in the first two sentences (ie. Excellent oral and written communication skills, working knowledge of Action Script 3, Illustrator and Photoshop, etc.)
3. Names of companies or top brands you've worked for.
4. Keywords related to industry trends or business strategy (ie. Recruiting, store launch strategy, customer retention, cost reduction, etc.).
5. Active leadership words (ie. Managed, designed, created, upgraded, oversaw, etc.)
6. Technology, e-commerce, software and hardware. (ie. Illustrator, Photoshop, Tech Paks, Powerpoint, etc.)
7. Personal and Company values (ie. Progressive, forward-thinking, design style descriptors, etc.)
8. Top educational requirements
ClipboardWhat if your career choice is one that requires a portfolio? Your book should be not only the creative expression of you as a talent… but an echo of your resume.  If you stress the fact that you daily use InDesign, the book should not start with free form drawings.
Place your most recent work at the front of the book.  There should be no loose pages of pieces that are not secured, sized oddly or cumbersome when the viewer flips through.  Try to make each period of your work be equally represented, and if it you are looking for your first full time position after university show a variety of successful projects and not just your graduating piece.  For fashion designers, balance the editorial and on-line content with images of things shot with detail so the viewer can see the construction.  For photographers, having an entire book of mediochre tears will hurt you more than showing your best tears and some tests you have produced on your own that really encompass your true talent.  Either way you want to create a story, so the entire book should flow.  It does not need to be in order, with the exception of placing the more recent work first.  Just like your career, a book should be a building block upward, so as your career advances and experience greatens, so should the work you display.
Always have a leave behind for any company to take after an interview.  If they are asking for a portfolio to be shipped without you in person, place your leave behind in the back so they can grab one themselves.  Garner the in person interview?  Take the time to hand them the piece, or if you really want to dazzle and it makes sense for the type of position you are interviewing for…  then customize a specific leave behind for that business (but DO NOT try to redesign something that they are already doing well… that will read as an insult).
The interview stage is tough, and should be prepared for.  Employers no longer have the budget to make a mistake in hiring a candidate that is the wrong fit, so they are taking their time to find out through sometimes several meetings if not only the skills, but the personality will work within their already active environment.
"Candidates need to prepare for a job interview just like they would train for a marathon," says Nicole Tebo, Recruiting Director at 24 Seven's Los Angeles office. "Too often people figure they can just wing it and that's a gross miscalculation in today's market where the competition is stiff."
The key ways to prepare are to research the company you are interviewing with, if you can physically go into one of their stores/businesses.  Purchase something they work on, and or play around with their website, do so… and do it for more than 5 minutes.  Size up their shelves, click through every web tab, read every magazine they publish…
State your benefits in tangible items.  This should go back to your resume, but really reinforce the success you have created for other companies What's your potential value to the company? What would you do, if hired, to immediately have an impact on the business? What examples can you offer about ways you have increased business for past employers?
And again, although this is the fashion business dress appropriately.  If you are interviewing for a job with Ralph Lauren, you do not need to swaddle yourself in your own designs and militantly talk about the fact that “this is all you will wear”.  Keep in mind that you want the company to remember you and your skills, not your wacky purple suit, or shaggy vintage fur.  Your style should be exuded through your portfolio, not your wardrobe.  Now this is not to say that a boring navy suit is demanded even in the fashion industry… just put your best foot forward, make an error on the side business vs. casual, make certain that any “private” areas are appropriately covered (and by that we do not mean sheer fabric or spandex) and splurge on drycleaning and a lint roller.
Secret whisperSimple human gestures will also work in your favor… look people in the eye when speaking to them and not down at the desk or your hands.  Shake peoples hand appropriately and not meekly, remember the names of those that are going to interview you.  Take a deep breath, relax and let them see the real you.  Do not complain… about anything… not how long it took you to get there in traffic, how long you had to wait to be seen, how far the office is from your favorite lunch spot, how rude the other people in the waiting room were… nothing!
 Be prepared to answer some of these key questions…
  • Why should we hire you?
  • Why do you want to work here?
  • What are your greatest weaknesses? Strengths?
  • Describe a problem situation and how you solved?
  • What accomplishment are you most proud of?
  • Tell me about yourself?
  • Where do you see yourself five years from now?
  • Do you have any questions for us?
When it comes to the “Do you have any questions for us?” do come up with a question.  Select some in advance (that do not have to do with salary, that topic will arise later when the company is interested in hiring you, but do research how much the position you are interviewing for usually pays and look at the salaries of employees at competing firms), really listen to what is being discussed in your interview and from the previously selected questions based on your research, ask something valid to THE SPECIFIC COMPANY with which you are interviewing.
Your talent may be steps above the rest, now is the time to learn to sell yourself so the world can start to recognize your skills.
For more specific tips and preparations, please visit 24Seven’s detailed website or go directly to http://www.24seventalent.com/confessions/ .
 
-Lynn Furge is the Creative Director of Nolcha: Fashion Business Services; a leading operator of educational, event outlets, and business-to-business services devoted to fashion entrepreneurs and related retail businesses. Her expertise lie in the luxury and creative markets.

The On-Shore Advantage

Posted by fashionentrepreneurreport On Thursday, September 24, 2009 0 comments



manufacturing_plant
Prices in terms of manufacturing are so varied that a designer new to the entire production process could make the wrong choice which in turn could delay delivery or even bankrupt a label before its first run is finished. 
Turn around time is becoming more and more important as retailers are buying closer to delivery dates and asking for more immediates (four week delivery). Unfortunately, many offshore contractors don't mention their minimums or will avoid the topic until one has gone through all of the steps of making prototypes and samples. The strategy is effective. Even if the offshore contractor hasn't charged anything for prototyping and sample making (a designer most likely have to pay shipping though), the designer is less likely to switch courses mid-stream and go with the higher production run even if they are not certain you can sell it.  
This puts a young business at financial risk usually because the label has promised to deliver by a given date and doesn’t have time to start all over again with someone else. Whichever contractor is picked, get firm minimums at the outset. Get it in writing.
C & A Apparel Service in Santa Ana California has noticed a change in the expectations of designer entrepreneurs and this has created unnecessary conflicts. Some designers have priced packages from offshore contractors of which certain services have been rolled into the package pricing, so designers aren't aware that these services aren't free.
With onshore packages, these costs are itemized separately which can be advantageous if you want to use another company for given services; say pattern making. For example, a basic knit top in Asia might cost a $5.50 flat rate. In the US, the costs of services for each step in the process are transparent with patterns, grading, marking, cutting, sewing and finishing (to include packaging) listed clearly. To arrive at package pricing, a bit of addition is required. While C & A Apparel Service does not claim they can beat the prices of Asian contractors overseas, their minimums and shipping charges are much lower and the turn around time is much faster.  
C & A says the companies they have worked with that are most successful aren't the ones with the most money. They feel the best companies are ones with budgets, those who itemize costing for every step in the process. Being that apparel is still a relatively low cost business to get into (much less expensive than other classes of manufacturing), it seems that many people have the money to at least launch a line.
The problem with people who have more money than average is that they want to off load responsibility too, meaning they expect the contractor to do everything for them (from sourcing to production management) with the designer focusing on being a "marketing machine". According to C & A this will never work in the long term. Worse is when a designer expects everything to happen -from sourcing to delivery- inside of two months.  
With respect to product development for new designers, they say their expectations are often too unrealistic considering their position in the market -often zero. Designers will shoot for the best fabrics, the most expensive ones and that they are too particular at the outset. C & A Services and many other manufacturers feel designers spend too much for fabric when the appeal of their line and their opportunities are compared.   
Of course quality is of the utmost importance, should not be used to deter the line because the cost is so great.  It is better to use high quality and less pieces for a first collection, therefore the adjustments to the run will be smaller and the delivery time will be quicker.  Line development is an evolutionary process.
Nobody starts out being the best from the outset. Sure, you have an idea of where you want to be but you grow in that direction. No baby is born as a fully formed independent adult. 
 – Kathleen Fasanella

The Place of the High Price

Posted by fashionentrepreneurreport On Saturday, September 19, 2009 0 comments



As designers continue to push ready-to-wear for new styles and silhouettes, they must compete with another growing trend—the price cut. 
In the upcoming fall and spring seasons, high end designers seek to appeal to the consumer fixation on lower prices and bargains while maintaining creativity and innovation in their collections.  For decades it has been acceptable to spend hundreds (and thousands) of dollars for ready-to-wear pieces especially for designs in high-quality fabrics from the top fashion houses.  And while some say the light at the end of the tunnel is approaching for the recession, designers and shoppers alike fear that as prices lower, so must quality. 
Stefano Gabbana and Domenico Dolce continue to emphasize creativity into each of their collections, and while the Italian house didn’t exactly receive the brunt end of the decline in industry sales, they recognize the need to conform to a changing economy.  In an attempt to cut prices, Dolce & Gabbana has employed alternative stitching techniques to reduce manufacturing costs as well as incorporating fewer fabrics in their selection.  According to an interview with Dolce & Gabbana,  a pair of five-pocket jeans for spring will sell for $450 (for spring 2009 they cost $695); a dress will cost $1,469, down for $2,295; a leather bomber jacket will be priced at $1,499, compared with $2,296, and a stretch silk tulle corset dress will go to $3,589 from last year’s $5,200.  The result: it is possible to incorporate lower-cost methods while maintaining high-impact fashion.     
Even with significant price cuts, paying thousands for a dress is still too high for the vast majority of shoppers.  To adjust to the needs of the economy, high-end designers are pairing with retail companies to make lines that appeal to all budgets.  After winning the top design award at this year’s CFDA, Laura and Kate Mulleavy of Rodarte will collaborate with Target to create a mix of feminine and modern pieces.  According to a Target spokesperson, they will incorporate “a rich mix of patterns and fabrications and everything from sequins and bows to faux fur”.  The collection, kicking off December 22, will run from $9.99 for some knee-highs to $79.99 for a leopard print jacket. Meow!
The launch of online sample sales has caught the eye of shoppers from coast to coast.  Online websites like Gilt Groupe, Beyond the Rack, Ideeli, and Rue La La hold daily sales each week with clothing from high-end designers like Badgley Mischka and Valentino to contemporary Splendid and Alice & Olivia.  Now shoppers can virtually duke it out for clothing and accessories from top designers as opposed to shoving elbows between racks.  Sounds appealing to even the savviest of shoppers!   
-Lauren Alfaro 

Fashionweek Invoice: What to Expect

Posted by fashionentrepreneurreport On Thursday, September 17, 2009 0 comments



runway_walkEver wonder why the average cost to show during Fashionweek is well over $50,000?  We asked 10 runway producers in 4 Major Cities (New York, LA, Chicago, Miami) the cost of the following items. 

The result? What you need to know when trying to do it yourself… Nolcha’s Fashion Business Average Invoice 2009.



runwayshow_invoice

Creating a Fashion Pricing Model

Posted by fashionentrepreneurreport On Sunday, September 13, 2009 0 comments



dress made of moneyThe best way to predict the future is to invent it!  In these tough economic times, business owners need to look at their financial strategy to address the profit structure of the company. 
The question a company needs to answer is how to pull off the desired growth that the new financial strategies can bring to a growing business.
To understand the natural interdependencies and logic behind the financial model and market dynamics, creative businesses need to start the building blocks at the inception (if not possible at least the beginning of the fiscal year) to drive profit from their goods/services.
Fashion Designer and fashion retail based businesses often become pre-occupied with the product innovations and unique offerings they have for customers, especially in a single owner business where all the logistics are decided by one person who usually gets a crash course in the pricing/POS system/accounting/supply chain part of their company.
The goal is for the business owner to develop a Profit Strategy and Innovative Tool Kit that can crunch numbers while they are in the studio creating new designs or off on buying trips to stock their sales floor.
Construct a “Road Map” laying out how to realize the Profit Margins by offering various pricing strategies from Regular Pricing, Sale Pricing, Volume Pricing etc.  Things to include in your Pricing Model:
• Gross Margin Requirements
• Unit Pricing
• Unit Margin
• Time to Break Even (especially important when buying multiple goods seasonally)
• Net Present Value
• Credit Items
• Discounts/Sale
• Buybacks
Note: During the Economic down-turn the “Slash and Burn response is often a mistake because the short-term operational issues often over-shadow the long-term strategies that still need to be taken into account.  Look at the problems Saks Fifth Avenue is now facing after slashing their prices during the holiday season.  Consumers are now expecting those low prices and are turning their noses at any slighter markdown.
Creating a “What If” Analysis feature into your Pricing Model is the only way to help your business gain a profit in shaky times as it predicts the impact of a price change and its effect on product profitability which in turn shows the effects on the bottom line.
In this example, the products will need to be assigned on the SKU Level and rolled-up to the defined level (If you are offering different prices or deals on your on-line site vs. store front or regional deals in terms of product offerings these things need to be predicted and figured in from the beginning.
pricing model chart

For Example:  What if we change the price of the Men’s Shirts solely in the Web-Based Entity.  Profits will be higher if sold at a certain volume in the Web-business part of the corporation.
With predictions of future market needs and understanding of the bottom line, a business can have infinite success.  The right pricing model is the first step in achieving longevity and growth.


Stephen Furge is the President and Partner of Furkon Software.  He is available for questions or consultations on any pricing model specifics by contacting sfurge@furkonsoft.com