Survival Strategies for Discount Apparel Buyers: Off-Price Specialist Show

But, like the song for the old sitcom Cheers says: Wouldn’t you like to go where everybody knows your name? That playing field leveler, where you don’t have to be a “name” Big Box Buyer, has been established for years. It’s the Off-Price Specialist Show, now in its 14th year, from February 15 to 18 in Las Vegas, Nevada.

Off-Price Specialist is the premier trade show for discount apparel wholesalers of all sizes. From modest beginnings out of guest rooms at the Debbie Reynolds Hotel, circa 1995, today’s Off-Price show draws 10,000 buyers who will mix, match and mingle price points and orders with more than 450 exhibitors at the Hotel Venetian Grand Ballrooms this February 15-18.

What Off-Price veterans knew all along was that they can source men’s, women’s and children’s apparel at 20 to 70% below the original manufacturer’s wholesale price. Buyer size no barrier. Discount retailer buyers can also do their fashion, accessories and footwear product sourcing anytime, 24/7, through the Off-Price Specialists Exhibitor Showroom web site.

“Bottom line shopping, off price, has become an integral part of the buying process for apparel retailers. If you do your homework and enter the off-price arena armed with knowledge of the market and your stores, the buys you make can give you the margin points you need to compete successfully. And, it’s a lot of fun.”
– David Sacks / Off-Price Buyer and Consultant

Here are a few Off-Price Show buyer strategies from David Sacks’ The Art of Shopping Off-Price:

· Buy Right to Sell Right. A discount retailer has little control over rent, staff and other overhead expenses. However, building margin through sharp deals can be managed through Buyer Strategies.

· Match Knowledge of Your Customer Demands to Awareness of the Latest Trends. By staying informed of new apparel, accessories and footwear fashion trends – through industry sites and trend alerts – you can refresh your product mix with the right amount of trendy discount merchandise to remain both reliable and unique to your base. Further, the addition of deeply discounted product into your store’s regular inventory will link value pricing and perceived bargains in your most loyal customer base.

· Approach a big order-writing trade show, like Off-Price Specialist, with a strategy. On Day One, tour the entire show floor; scan all exhibitors for your desired products, styles, price points and customer service. Sacks advises not placing any orders before Day Two, waiting until you’ve evaluated the merchandise and negotiating potential.

· Know the difference between Intrinsic Value (quality, content, components) and Perceived Market Value (its value to your customers) of your desired products. Sacks cited an example of his failure to acknowledge how much Brand mattered to his customers’ perception of Market Value, when the synthetic fiber content lowered its Intrinsic Value … in his eyes. It was a costly non-competitive mistake he did not repeat with more experience in buying for his market.

· Small store Margin Call. Smaller stores need to realize a 40% to 50% margin after markdowns. Thus, carrying approximately 20% inventory sourced in discount, off-price product would produce significant bottom-line results for a smaller, regular-price merchandiser.

· Face-Time Premium. Sacks offers tips on Buyer negotiations for below-market-priced product. But most of the success in negotiating buys relies on personal interaction with exhibitors/sellers, developing a relationship. Something that can only be done face-to-face at trade shows.

See all of David Sacks’ Off-Price Show Buyer Tips here.