Start Up Expenses of a Shoe Retail Store Business,
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How much does it cost to start a shoe retail store? There are no hard and fast rules in setting the price tag of a shoe store business. Your start ups costs will be influenced by a number of factors,
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Size and design of the storeUsing the common start up expenses of a retail shoe store listed below,
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Gross Profit Margin
It is important that you have a good idea of the expected gross margin of your retail store. Gross margin is the difference between net sales and cost of goods sold; it is what is left over after deducting cost of sales from sales and converting that to a percent. For example,
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According to the Annual Retail Trade Survey of the Bureau of Census,
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Total Fixed Expenses
As you operate your store,
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Estimated Fixed Expenses of a Shoe Retail Store BusinessThe type and quality of your merchandise will shape the image of your retail store. Customers will come and patronize your store due to the quality of your inventory (among other reasons such as customer service). Your inventory can also spell the success or failure of your business: choose too much of a shoe style that no one wants to buy, you may be staring at the death of your business.
Below are some suggestions on how to best choose your inventory for your shoe business:
1,
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Stay away from those that manufacture their brands from sweatshops and other politically hot buttons. Carefully review the companies that you are dealing with, including consumer complaints and lawsuits (use the Web to research).
Given your original vision for your retail store,
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Note that factors such as trends, weather and customer preferences need to be taken into consideration when determining the percentages for each product category or brand. For example, boots may occupy a very small percentage of your inventory for the summer, but orders for this type of shoes will increase for the fall and winter seasons.
3. Put a tracking system in place,
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It is critical to know which merchandises are moving from what categories/brands, and which are not. There are a number of inventory management software systems currently available, although its price may be too high for start up shoe stores without deep capitalization. Instead, develop a system that could allow you to track the movement of merchandises. number) and other information you may deem important.
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