Retail Techniques & Management: Part I Embroidery Project

Retail is perhaps the most under-served market in the embroidery industry. In a recent survey, only 17% of the respondents claimed to have a shop located in a retail environment. There are many reasons for this, with the perceived cost of location generally being listed as the number one reason against pursuing this type of business. Yet piece for piece, retail embroidery has the highest markups in the business. With some shops charging as high as $3.00/1000 stitches for embroidery sewn onto garments with a 100% + markup (with caps it can easily be 500% +), the typical retail job can be quite lucrative, even if it’s only one or two pieces. Unfortunately, high markups are no guarantee of success. Just like any other business format, retail embroidery requires that an appropriate business model be created that takes into account operating costs, store location, marketing focus, inventory requirements, customer demographics, pricing, cash flow projections, production processes, etc.

The allure of high profit margins on goods and services causes many to make the mistake of “leaping before looking.” (Having owned a retail embroidery business as well as having a part in creating another, I’ve gotten a dose of that reality myself!) While there is a huge library of subjects that must be explored before journeying down the path of retail operations, there are two key areas that I wish to discuss here. The first is defining what retail really is and the second is to define a workable method for servicing your customers.

When working in the retail sector your typical customer is the consumer. Impulse buying is high on their list of defining characteristics. Impulse buying by definition is somewhat irrational and fickle, so successful retailers spend an inordinate amount of time trying to grab the attention of the passer-by. (Studies have shown that you have about 3 seconds to get a persons attention before they become just that, a passer-by.) Thus, marketing, promotions and displays play a big part in bringing the customer in the door.

Realizing this concept, the Retail Embroiderer works hard on producing eye-catching displays featuring exciting embroidery concepts. Properly done, such displays feature props, decorations and accessories. The surprising result is that customers come in wishing to buy the PROPS, DECORATIONS and ACCESSORIES, not the embroidery. Are you prepared to sell these items? Probably not, but you should be. As a Retail Embroiderer, you are a Retailer first and an Embroiderer second. You have the ability to showcase anything you want in an effort to separate the customers from their money. If they want one of your props, SELL IT TO THEM. If they want a cone of thread, sell it to them! Anytime you put anything on display be prepared to sell it.

I remember a Retail Embroiderer who decorated their store for Valentine’s Day using heart-shaped, helium filled balloons as a way to attract attention. It did great; everyone that came in wanted to buy…? You guessed it, the balloons. The funny thing was, the Store Manager didn’t want to sell the balloons, initially. He learned a valuable lesson about retail that day.