Issue link: https://docs.hic.us/i/403552
Now start talking to the people that you ranked as 1's or 2's. Discuss your business ideas and see what feedback they provide. This information can help you decide what direction you should go with your business. NOTE: See Attachment A for more information about generating a List of Potential Customers. Determine The Type Of Business In addition to identifying who you plan to service, take the time to determine what type of business you plan to operate. Traditionally, Decorators fall into one of the following categories: Retail - Wholesale - Contract Each one has its own characteristics as well as equipment requirements, so it pays to understand the differences, and see which type is right for you. Retail Shops When selling Retail, the customer is normally the end user, so prices tend to be higher than any other category of embroidery business. Retail Shops usually require a visible storefront and are typically located in a Mall or Shopping Center. In addition, the average order is small in size, but has a significant markup for both the garment and the decoration. In fact, an important aspect to consider is the sale of the clothing. Instead of seeing yourself as a Retail Decorator, take the approach that you are a Retailer who offers Decoration. Carry an assortment of products suitable for decoration, but priced such that if someone prefers them blank, you are still making plenty of money. Don't just focus the business around the decoration. Look for unique apparel, that has consumer appeal with or without decoration. For example, many successful Retail Embroiderers carry well-known outdoor clothing brands such as Columbia Sportswear and Woolrich. They tailor their displays and promotions to target the outdoor market, not necessarily to sell decoration. There is enough margin in the products to operate the business profitably. The decoration (aka embellishment) becomes a value-added service that generates additional revenue. This is the true retail philosophy. For most retail embroiderers, the majority of their work is personalization and gifts initially. But by being in a highly visible location, larger volume orders for teams, schools, corporate and special events are inevitable. Many retail operations expand into the wholesale markets by virtue of being seen. As a result, they may add a second location with larger machines producing the larger orders generated by the retail shop, as most of these retail locations only have room to run small equipment onsite. www.hsi.us care@hsi.us 7