Starting any business is always something to sit and think about… a lot. Most people in the fashion industry think it does not take that much thinking, but it is quite the opposite: the larger the industry, the harder to make it profitable.
For starters, most small sellers and boutique owners should understand that buying brand-new pieces and becoming a first seller is not the way to go. At least, not when capital is limited or you are unsure of the investment.
Knowing your target audience and how much they would buy as well is key in deciding if the prices would hold.
The ideal process is to start a boutique with surplus inventory instead of your usual brand-new stock.
Fashion boutique surplus sourcing and working with the goods allows you to cut costs and offer more for less to your clients. This does not come without a benefit around maximizing your profits.
However, it is easier said than done. Clothing liquidation for new boutiques and owners can be tough unless you understand the market. And also, the way liquidation pallets work.
Here, we want to show you the options you have to make it work and ensure that surplus apparel for boutique owners does not look impossible.
Initial Investment: Starting with $5k-10k in Surplus Inventory
You can launch a budget boutique startup with liquidation. What does this mean? That you don’t need a massive budget or upfront capital for it.
Many successful owners begin with anything from $5k to $10k, making this investment profitable with the way they worked around it.
Platforms for sellers like Typof recommend working on specific liquidation, especially when you are unsure of the overall costs.
Platforms like Liquidation-com, Bulq, and B-Stock offer curated lots. Nevertheless, being careful around them is needed to get the most out of your investment.
Sourcing with surplus partners also allows you to access surplus apparel at deep discounts. The best part is how you can work with variety and get your logistics streamlined.
Curation Strategy: Creating Cohesive Collections from Mixed Lots
Making surplus goods work depends a lot on the curation process.
You need to sort out your items by style, season, size, and condition. You can even create collections based on the theme.
Besides being about determining their value and condition, it is also a way to sell your inventory.
Go over the inspection, curation, and proceed to take high-quality photos. Include clear descriptions to elevate your brand, and make mixed lots feel intentional.
Pricing Strategy: Markup Formulas for Liquidated Goods
Not everything costs the same, clearly. However, not everything should be sold low just because it is surplus inventory.
For a budget boutique startup with liquidation, aim for a 2-3x markup over your costs. Adjust this according to the brand, condition, and demand.
For instance, if you paid $5 for a surplus blouse, you can often sell it at $15 or $20. If the brand is really good along with the piece’s condition, this can easily increase.
You want to maximize profits, but remember, you need to move inventory quickly as well.
Success Story: Tampa Boutique Launches with Surplus Investment
It is possible.
Several boutiques in Florida rely on surplus items to start and grow their business.
A specific case includes a Tampa entrepreneur who started her boutique with only $7.000 in surplus inventory.
She focused on specific brands for women, which were on the contemporary side. She searched for surplus around this and made sure to buy goods that aligned with the project.
Once done, she curated cohesive seasonal collections. Priced items at 2.5x her cost and used several channels to general buzz. This included Instagram and Facebook.
Within six months, she recouped her initial investment and grew a loyal local following.
The initial profit reached the $20.000 mark with all the investment discounted already.
Coastal Surplus Solutions Makes Your Life Easier
Our professionals work with you through every process and make sure you get the most out of your investment.
We can be the one sourcing and connecting you to your surplus inventory. All of it while considering your budget and specific goal.
More than sourcing, we also streamline logistics, handle shipping and delivery, and consider your needs for quality assurance.
Feel free to contact us and work with our professionals to get the best results.
As mentioned by the Small Business Bureau, having a professional and strategic approach already helps you to reduce costs.
We are here to maintain this.
