Off-Price Buying - Apparel Market Tips For Boutique Owners

Hey guys, it's episode number 242. And if you're thinking about going to Las Vegas for Las Vegas Market Week and Fashion Week, let's talk because there's a show that you might not know about. Let's talk about your business strategy and the juicy details of what actually works from mainstream fashion to fashion on Main street and the entire ecosystem behind it. How do we scale your company and do it with the balance and the happiness that we all seek? Let's hear from those insiders, experts and strategists that actually make it happen. I'm your host, Ashley Alderson from the Boutique Hub and I can't wait to chat. I know heading to Las Vegas could be such a busy time of year. There's so many shows to see, so much fashion to take in, and of course, so much buying to do. Right. You know, one of the shows that we've worked with for the last couple of years is called the Off Price show. And some of you who've been around the Hub for a while are probably familiar with the show. But if you're newer to the game and you're wondering what is the off price? Today on the show, we're going to talk to Tricia, who's the executive director of the Off Price show, and we're going to talk about the industry as a whole and what you should know about off Price. If you listen to the podcast episode that we had a couple of weeks ago about our 2020 New Year's resolutions for the boutique industry. One trend that we're seeing so much of is called re commerce, or when commerce isn't only based on the newest and latest trends, but it's recycled things, right? It's your buy, sell trade groups that you might create for your boutique or it's a different point than your typical boutique's high end price point. And the same is true in the wholesale industry. While you aren't buying recycled or reused goods to stock in your boutique from wholesalers, there still is an off price market where you can get discounted items from wholesalers that typically supply places like Gordman's or TJ Maxx where you see great name brands at discounted prices, you have that same opportunity in your business. So today Tricia and I are going to talk through the off price market what you can expect from the industry and how you can leverage some of those below wholesale price for your business, how to make more margins when it comes to things like Black Friday or any kind of door buster specials. You're going to run this year. It's just a great opportunity to learn about how our industry works. So please help me welcome my friend Tricia, the executive director at Off Price. All right, guys, welcome back to the show. This week. I'm so excited to a have a show about a trade show which is coming up, and I know so many of you are going to be attending. But second, I think this is maybe the first North Dakota I've ever had on the podcast that I can remember. I may be wrong there, but Tricia Bargloff is the executive director of the Off Price Show. Tricia, I'm so excited that you're here.

I'm excited to be here and excited to chat with a fellow North Dakotan. There's not many of us out here. I feel like.

You know what? Let's just tell everyone up front, if the accent starts to come out thick, it's the A's and the O's, and we will play off of that galding accent this whole time, so just bear with us.

Absolutely.

The crazy thing is we're both from North Dakota, opposite ends of the state. I'm from the far west side of the state. You're from the far east side of the state. And now both of us live in Wisconsin, Also equally as heavily accented as North Dakota.

Yes, yes. And it's funny, as you mentioned, where you grew up, I'm thinking to myself, oh, who do I know from that area? What can I talk about from that region? Because I'm sure there's some connection that we have.

Yeah, I think that's so funny. You and I were talking about this before the show, but the O's were already coming out. Did you catch that in the word show? I'm just preparing for the worst right now. Anytime I travel. I ran into someone the other day, a friend of mine. Her husband is from Lemmon, South Dakota. So South Dakota. I grew up right on the border, as I know you did, too. And Lemon's about an hour from my town, about the same size, really small. And we were joking that every time we meet someone from either north or South Dakota, we immediately say, oh, my gosh, what town are you from? Hey, do you know so and so? Oh, so and so is my cousin. So and so is my best friend's brother or roommate or I, you know, went to college with that person. But there's not. Not just the six degrees of separation from Kevin Bacon, but like two degrees of separation in the Dakotas.

Yeah, yeah, it's much shorter that Degree of separation when you're from North Dakota or South Dakota for that matter.

So talk to me about how you left North Dakota and you ended up in the business that you're in now. We're going to talk a lot about the Off Price show coming up. But you've been with the show for a long time. Talk to me about that transition.

You know, I again, growing up in North Dakota, I studied fashion and apparel at college in North Dakota. That's not exactly a fashion hotbed for opportunities. And so, you know, as I'm graduating, trying to figure out what I want to do. Pretty much your options at the time were just being a buyer for a retail store or going into retail management. And so, you know, that's what I did in college, working part time at a retail store. They recruited me into their management program after college and I didn't have any other alternatives, so decided to do it and progressed to the bigger city in Minneapolis and enjoyed living there, but didn't love all the nights and weekends I was working. So was just trying to find something new to do. And then a gal that worked with me, her brother was actually running the off Price show at the time and she connected us. They were based out of Milwaukee and so I'm in my mid-20s, not attached to anything. And I just kind of thought, why not move to Milwaukee, Take a chance and if it doesn't work out, I can always move back. And here I am 18 years later.

18 years later. That says a lot though about the company that you work for and the show and the people that you surround yourself with and the mission that you guys are on. So that's really cool. Congratulations.

Yeah, thank you.

So in case anyone is listening today, I want to start here. We talk about the Off Price show and off price as a whole a lot inside of the boutique hub. And there's always questions, right? There's always our veterans, right, that have come to the Off Price show for different meetups and things that we've done there in the past. But there's always a lot of newbies that are like, what is the off price show and what is that side of the industry? So can you talk me through that as a whole?

Yeah. I mean, Off Price show has evolved over the years. When we originally started, we were a trade show for the jobbing industry. And what that meant is that the vendors at our show were going to brands that had excess inventory in their warehouse that they didn't know what to do with. And our vendors would take advantage of those Opportunities and turn around and sell it to retail stores. And back in the day it used to be a lot of the what you used to know, off price stores, as with the irregulars, miss size, wrong colors, that sort of thing. But it has truly evolved over the years and become, you know, everybody loves to buy at a deal and get a deal on product now. And so now there's a lot of opportunity for not only the jobbing, which is still part of it, but there's opportunity that people are actually producing the discounted line of their main brand because they need to diversify and not just be mainstream retail. They also have to offer discounts, discounted apparel for other retail outlets.

Absolutely. And if anyone's listening that isn't familiar with a jobber, I think that's. I'll never forget the first time I heard that. I was like, that's an interesting term. Right? Yeah. I have always thought of a good way to explain this to people is if you think of the rise of Gordman's or TJ Maxx or that whole industry. Right. And ever wondered about how do brands get into those stores? Well, it's exactly what you guys are offering at off price. Every wholesaler, just like a retailer has to have a markdown schedule or like you said, another income stream. And so there's always outlets to buy those either off season or off price or overstocked items that didn't sell.

Yes. But now what's more interesting as we've matured over the year, the show has matured over the years is that it used to be a lot of last season trends, but now people are now producing in season trends. And so it's a lot more common to come to our show and find goods that you can place in your store immediately. You don't have to wait six months to put them on your racks because you bought last season's merchandise. And that's one of the big things that we've evolved with over the years.

That's really exciting.

Yeah.

Something else, talk to me about the change. This year you're going to have a boutique section at the show. And I find this so interesting before you go down this road of when people think of a trade show, right. And they think of coming to Vegas, they often will think of WWD magic. And you walk in this beautiful trade show and these bright colors. Right. And all this branding. But the off price show is different. So can you set it up for what people should expect and how they will shop the vendors at the off price show?

Yeah. I think the biggest thing how we fit into Las Vegas Fashion Week is that a lot of the other shows are showing trends for six months down the road. So for example, our show coming up in a few weeks are coming up soon is that you're going to be seeing a lot of spring and summer products that people are going to be sourcing to put in their stores still in the next couple of months. So people are going to some of the other shows to see the trends, but then they're coming to our show and finding them at what they think is a better margin to sell still a quality product.

Perfect. So what people should know is when you come into the off price show, you're going to see lots of different things. Right. A huge variety of vendors that are there. But it's okay to dig to find what best fits you and your store, right?

Yes, absolutely. That is, it is very much a treasure hunt. We do cover all categories. Men's, women's, kids, footwear, accessories. We do have all of it. But one of the things that we encourage a lot of people to do is really do their homework before they come because it can be intimidating when you walk in the first time because there are a lot, there's a lot of product on the show floor, there's a lot of different SKUs that you can find at the show and take the opportunity to do some research beforehand is helpful because there's 450 exhibitors to look through and you only have so much time that you can spend at each show while you're in Vegas for Fashion Week.

Yeah. So talk to me about the new boutique section and how you think that might save everybody some time.

So that is a category that we have curated in the show because we have a lot of boutique store owners that are coming and they're looking for a higher price point. An elevated price point is what we like to call is a little bit more expensive than what the traditional off price product is. But that's who is exhibiting there again are those higher end manufacturers that are trying to get into the off price business. And so now they're producing a lower price point, but it's still elevated than the traditional off price product would be.

Perfect. So a little bit higher end manufacturer. The boutiques can get at a great price. We often use the example inside of the boutique hub. You know, when people ask why would I shop off price? The best example I could give is Black Friday fillers. You know, you're buying things at probably 50% in some cases below your wholesale Cost. So it's such a great time. You know, you're not going there to find your latest trends like you said, you're going to magic or project wherever to find that. But this is where you find the fillers that are actually the revenue builders, the margin builders in your store. Can you talk more about like some of those deals and things they might find there that could be a good Black Friday type item?

Absolutely. You know, that's a perfect example of how I usually explain off price is the door busters that you offer during your Black Friday sales. So for example, you could, we'll just use a simple example of an accessory you can go to market and find. You find a bracelet that you like wholesaling for $6 at off price. You'll find it actually wholesaling at $2. But you could still charge. You would. At the $6 price, you could still charge retail $12. And so you can see how much more of a margin builder that would be for you just by buying it at off price in comparison to the regular market.

Who are the majority of your buyers that come to the off price show?

They come from all avenues. You know, boutique stores are a big part of it. But we also have a lot of the large national retail chains such as Ross Stores, Bell's Outlet, some of the Stein Mart stores, all the big ones that you would typically hear in the off price industry participate with off price in some way, shape or form. But it's not just boutiques and national retail stores. It's gift shops, it's pharmacies, it's hospitals, those types of things. I mean there's something for everybody at off price. You just have to do a little hunting to find what you're looking for.

What else is changing at the show this year? Any other additions? We mentioned the boutique section, but what else can people look forward to?

Well, one new thing that we are very excited about for the show is that we've partnered with a beauty event called Unfiltered Experience and they're doing a one day beauty pop up show at off price right next to our registration area. And so this will be the first time that we have beauty vendors at the show.

That's really cool. Is that going to be out in the lobby there by your registration area?

Yep, yep, just right next to our registration area. It is a pop up event. So it is just a one day show happening on Tuesday. We're really excited about it because as we go shopping as our team here, our consumers going out to retail stores, you see More and more beauty in every avenue of retail.

So I love that. You're right. You absolutely do. In case anyone doesn't know, again, the show is at the Sands, correct?

Yes, that's right. In the lower level of the Sands.

And then we have, we have kind of our own little collaboration this time at the show. So if you're a hub member or you're not a hub member, you're just a boutique owner and you want to come and tour the show. So we're going to be having a tour on that day on the 4th. You've got to confirm the time with me. I've got that in my notes. I think one o' clock if I remember right. Yeah, that's right, one o'. Clock. So if you guys are there, I guess you get to come see the beauty pop up and come on the tour and meet up with our entire boutique hub team that's going to be there that day as well.

Yeah. And that's kind of how this is evolving for us, is now that Tuesday is becoming a boutique day because you know, you'll be there leading a guided tour for boutique store owners and then hopefully they'll take a look at unfiltered happening later that afternoon. They're having their actual own seminar that day talking about how you can partner with social media influencers, how you can correlate beauty into your store and help you build some profits.

Awesome. I'm really excited to see that. That's awesome. All right, well, let's shift gears just a little bit and talk about the retail industry as a whole beyond just the show. I know in 18 years I can't imagine the changes that you've seen. Right? Yeah. Talk to me about where you think retail has come from in the last three to five years. But then what are you excited about that's changing?

What I think is exciting is that even with all of the news that you hear and read every day about stores closing, that there's a lot of new success stories that you see of people getting creative with how they're evolving their brands. Whether it's doing fun pop up events, you know, sip and shops, things like that, or they're doing product swaps within their stores, working with other boutique that isn't competitive, but they can work together and try to sell each other's products. You know, those are some of the fun things that you see as people are trying to figure out how to change with the times, with technology and all those different things that they have to overcome to run a successful Business.

Yeah, I think you're so right in that. So many people. I think the news paints such a bleak picture, doesn't it? Just kind of a scare tactic, if you will. But it's opened up so much opportunity, especially for independent retailers. I think the consumer is so ready for people. Consumers are ready for boutiques to make them feel special and to feel important rather than just allowing them to walk around a big store and sift through endless racks of clothes, right?

Yeah, for sure. I think everybody, you know, just consumers are looking for that personalized individual experience. Like they want to feel special when they walk into stores now because everybody's day to day lives are so busy that they need a reason to come out and see what you have to offer in your stores. And it's fun to see the creative ideas that people are coming up with. There's always new things that we're hearing of and I think it's building some excitement in the industry again.

You know what else I think is really neat that correlates back to off price is there's such a demand from the consumer today to have an off price option, basically. I was just reading an article actually this morning about what people call recommerce, so the recirculation of goods. So companies like Thredup and Poshmark and Depop and all these are so popular. I just was talking about this actually in a couple weeks ago in our episode in the podcast in my 2020 New Year's resolutions about how important it is for boutiques to start to recognize that trend and when they're making deeper investments in their inventory and higher priced goods. What a great opportunity it is to have a buy, sell trade group, Facebook group, something that gives their customers an opportunity to buy it off price. So really mirroring what you guys are doing in the wholesale industry, obviously not for used goods, but again, giving a second price point option.

Absolutely. Yeah. No, it's definitely something that we're keeping an eye on in terms of how that can fit into the off price model. And so, you know, we're anxious to continue to see that trend evolve and how off price can be a part of it.

Absolutely. Talk to me now about the wholesale side of the industry. We talked about how retail is changing, but my gosh, wholesale has changed so much and the trade show industry has changed so much. What are some of the things you're most excited about that have really changed and where do you think it's going next?

I think technology has a lot to do with that. You know, technology was a challenge for off price for a while because for the longest time we survived on, you know, manufacturers not guessing correctly on their inventory. And now that technology is fine tuning that for people that are producing product, it makes it harder to find goods in the market. And so a lot of our exhibitors are trying to evolve with that, which is where we're finding people producing engineered off price to also help sustain while they're looking for other opportunistic buys out there. And then the other thing that I would say is that people are buying more and more online. And so that's what we're reflecting. That's how we're evolving. Our show is that, you know, we're just not a traditional trade show anymore, that people aren't able to get out to Vegas because it's getting more and more expensive. And so how can we still stay relevant outside our two shows in our regional market each year? And so people can shop off price through Our Marketplace off price 365 throughout the year and still find good deals when they're not able to get out to any of the markets.

That's really helpful. So off price365 is your online marketplace. Are all of your vendors from the show on that marketplace as well, or just a portion of them?

Just a portion of them. It's continually growing, but it's always a great place to start, especially if it's. If you're coming to off price for the first time and don't quite understand what you're getting into, it's right there for retailers to see how they can build their profit margins by buying off price rather than regular wholesale. So it's a great way to also source new vendors if you want to try to introduce new product into your store. This is a way to get a good start on who you want to go see and make appointments with when you come to the show.

Super. That's really, really helpful. If you're thinking about all of your boutiques or your retailers that are coming to the show. If you could say, you know, the most successful ones that you're aware of, what do you think are some of the things that those most successful stories have in common before they come to your show?

Not being afraid to try new things. I mean, I think it's just such a competitive market, the retail industry, that you need to shake things up. You know, you can't do the same old, same old. If you're not evolving with the times and not afraid to take few risks. I think that's really Going to be what makes you successful.

Man, I have to echo that. I think that's so spot on. What about you mentioned this earlier too, just about coming with a plan, coming with your, your open to buy plan or knowing what categories you're going to fill. Right.

Yeah. I think the most important thing you can do before attending off price is to do your homework and that is going to our website, the floor plan, where all the vendors are and what categories they carry are right on our website. The mobile app that we have is also very helpful. Again, it's a large show and so it can be easy to get lost with all this product all around you. And so you can take notes through your mobile app to revisit those vendors that you're not sure about quite yet, but want to revisit at another time. And again, the off price 365 our marketplace. That's a great way to start pre shopping product that's going to be at the show.

Perfect. And can you share the dates again of the other, the regional show and the other shows that you have as well?

Sure. So our show is coming up during Las Vegas Fashion Week, February 3rd through the 6th. We'll also be in the New York market in May, May 5th through the 6th. And then we will be back to Las Vegas for Las Vegas Fashion Week August 16th through the 19th.

Awesome. Well, Tricia, thank you so much for spending time with me today to talk about off price in the industry. Is there any last piece of advice that you want to share with any of the boutique owners or any of the wholesale brands that are listening?

Well, first of all, Ashley, I appreciate your time today and let me talk about off price, but don't be intimidated by what off price has to offer. I think your help, Ashley, by leading a guided tour for all boutique store owners is a great way to step into the off price market for the first time. And so I really encourage everybody to take advantage of that because what better way to learn about off price than from other retail store owners? And you leading that curated tour I think will be a great help to any boutique store owner.

I really appreciate that. Thank you. I honestly, if you've not ever been there or if you've been there before and you're like, gosh, how do I find my way around this show? It's so different than the others. There's such opportunity there. Right. If I can just go on a soapbox for a second, Tricia, I, I just really believe that so many times. And it's not just you know, in business or with boutique owners, but it's every single one of us, we get so caught up in the trap of comparison online, right? Social media, fomo. And we feel like, you know, we're only a successful business owner if we feel like we're doing the things that these big boutique owners that we follow are doing. And, and the truth is the things that really set our business apart from others are the things that we do that maybe no one else sees.

Right.

It's the times that we are digging through the racks or we're finding unique vendors or we're finding better pricing or we're really honing in on our margins. Right. Not everything has to be pretty or perfect or well branded, like bright and like in your face for a 20 year old.

Right.

It can be something totally different, but so financially sustainable that really sets your business apart. And I think off price is such an opportunity for that reason. But you have to be willing to go there and to look around and to do the work and I think that that pays off in the long run. So we've always been excited to partner with you guys. We really think it's important and we're excited to be back again. So thank you.

Yeah, we're excited to have you back and we're always here to help. So if for some reason somebody isn't able to take part in your tour, we're there to help. Our staff is there to help throughout the show. We love helping people find new opportunities to make more profit in their business. And so don't hesitate to ask us a question. Please reach out. We're there. So happy to help and happy to partner with you guys again. We're really excited to have you back, Ashley.

Awesome. Thanks so much, Tricia. We'll get together and we'll talk about, like, Lefse and Fleischkikla and cheese curds and all the things that North Dakota and Wisconsinites have in common.

Yes. Yes. I love it. Yeah, me too.

Thanks again for being on the show today. We certainly appreciate it.

Thanks for having me.

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