The Truth About What's Coming for Retailers & How to Prepare
Ashley Alderson, Sarah Burks, Samantha Connor, and Dane Cohen discuss how independent retailers should prepare for tariffs and supply-chain disruptions in 2025. Vendors are delaying shipments, pausing production, and some brands are moving manufacturing to Mexico and South America. The panelists recommend auditing inventory, clearing slow stock, negotiating with vendors about tariff exposure, and tracking weekly margins.
Chapters
Hello, everyone.
Look at you guys rolling in. Good to see you. Welcome today. Hello. Hello. I see some familiar faces. I love it. I see some new faces. Even better. So glad you guys could join us today. Hello, Phoebe. Hello, Leslie. Hi, guys. All right, well, as we're getting started, of course we'll have people rolling in. I know what it's like a busy day. I'm sure you guys have got a lot on your plate as people are rolling in. Let's do some introductions. In the chat, I would love to know, tell me about your store, where are you from and what do you sell? Because I think we've got a diversity group here today. So in the chat, introduce yourself. Hello, Allison. I see you. Ashley, Emma. Good to see you guys. All right, so in the chat, tell us about your store. Where are you from? What do you sell? And I think we even have a poll. Can we put up our poll, Beth, on little poll on what do you sell? I think that would be so helpful to see as well. All right, as you guys are doing that, where are we at with the chat? How we coming? Okay. Ohio. So good. Texas, South Carolina. Hello, Ali. Iowa's in the house. Wisconsin's in the house. Well, there's a couple of us from Wisconsin in the house. Love that. Indiana, Virginia gift shop. What else do we see? Lots of accessories, some beauty, a few pet stores, lots of home and gift.
I see Colin from the Palm Tree. I have to call him out. He's in my hometown.
Really?
Yeah, he's in Grapevine. My daughter worked for him. Hi, Colin.
Met her.
Yeah.
Oh, there's a New Jersey. What's up, Jersey?
No. Where's our east coast friends?
We need.
Dane needs some friends in the house. All right, good. Well, as you guys continue to drop where you're from, what you sell, maybe how long you've been in business, and as you answer the poll, I say, let's get started. Let's jump in. We're going to introduce ourselves. I would love to know in the chat. Second question here. And I don't know if this is on a poll, but are you guys Hub members or not? Who? I would love to just kind of get familiarity. Are you a member of the Hub or not? That would be so helpful. So we kind of know just familiarity level of everyone. I see some Iowa Hawkeyes in the house. I love that Noel from Pink Panache. Good to see you. All right, lots of members. Perfect. Past member. I'm not sure we can. We can help you with the I'm not sures. If you're in, I'm not sure, just message us either. Direct message here, Beth, you want to raise your hand, you can message Beth. She can help look that up for you. Or shoot us an email at happypeople@the boutiquehub.com and we can help get you familiar.
I love it.
All right, not a member yet. Okay, perfect. Well, good. This gives us a good idea. So most of you here are members. A few not yets. We can tell you more about that later, I promise. This is not really the purpose of why we're here. Just, just to get. To get to know who you guys are. We'll tell you about the Hub, but more importantly today, we want to get you some really good information to make some sound decisions in the next couple of weeks and next couple of months. So as far as introductions go, you guys, nice to meet you. I'm Ashley Alderson. I'm the founder here at the Boutique Hub. And if you've listened to our podcast, Boutique Chat, maybe my voice is familiar that way. Every single week, on Tuesdays, we launch new episodes and I've been here at the Boutique. I've launched the Boutique Hub back in 2013. So it's been a minute. I am originally from North Dakota. I live in Wisconsin now with my husband and our three kids who are all in busy middle school, high school, school of sports, all the things. And I am super passionate about this industry. So I'm all about seeing the forest through the trees and hopefully giving you guys the most up to date resources, no matter where you're from, no matter what you sell, no matter how experienced or inexperienced you are. I just really am passionate about the Hub being the central go to place for you to make your life a little bit easier and operate a little bit smoother. And hopefully you also are able to, you know, build a business you're really proud of and serves your needs. But also, and most importantly, you have a life that you love and you have time to live outside of running your business. So if we can put time and. And some security back on your plate, that's the goal as well. So thankful that you're here. I'll pass it around the room. Sarah, do you want to go next?
You bet. Hey, guys, I'm Sarah Burks. I'm the director of Partnerships Education here at the Boutique Hub. And I started in retail way back in 1992 or three. It was just a while ago. So you guys, I am. I teach a number of courses here at the Boutique Hub. I've walked in your shoes, I have felt many, many pains and through, through retail, all the things and I'm an open book. I love to talk shop. I, I just feel, I feel where you guys are at right now today. And that's why it's so passionate for me to come and help do this session today to just kind of open your eyes and ears to a few things because that's what we do here at the Hub. I remember when I had my store, my head was down, I was doing the work. I had really no idea what was going on out in the real world. And because I was so busy running my business and sometimes I got blindsided by the things I just didn't know.
Right.
The big guys knew them. They had somebody in their corner telling them and I didn't. And then enter the Boutique Hub. And that's why we're here today, to be your eyes and the ears. So I hope you guys, I'm excited about it. I'm glad you guys are here and I hope you guys find a lot of value out of what we're going to talk about today. And yeah, proud of you guys are taking some time to be here. So I'm going to pass it to Samantha. Hey guys.
I'm Samantha Connor. I'm based in the DFW area and I've been with the Hub for almost five years. The perspective I bring to the Boutique Hub is one from the sales rep point of view and then the brand designer slash owner. So I've dabbled in a little bit of both of those. But what I do here at the Boutique Hub is I connect people with the resources and the brands and the retailers and bring you guys together to do business. I am in charge of the market experience for the Boutique Hub. So if you've, you, you've probably seen me in person with my team at the booth or in our showroom. But really excited to bring that perspective of what's happening on the brand side in this current economic industry and how we can help connect those pieces for you, the retailers with the wholesale brands. All right, Dane, how about you?
All right, thanks, Samantha. So I'm Dane Cohen. I'm the newest member to the Boutique Hub and maybe a familiar face to some of you. I worked with management one really helping develop retailers understanding of inventory planning and financial merchandising. So I've worked with independent retailers for many years now. But my real passion comes from. I grew up in a retail family so retail is kind of in my blood. I ran that business with my dad and my uncle for many years. So I was in the trenches for almost a decade in buying and store management. And so it's really great to just connect to everyone here and hopefully be able to bring, you know, some real information, especially as it relates to profit and your numbers. So, you know, I'm really happy that I'll be able to focus on kind of connecting with the boutique hub community, on how we could build strength through knowing our numbers.
Good. All right, Beth, you want to go? Yeah, I'm here. I'm here answering all the questions. So just wrap me and I'll help. I love it. Beth is here in the chat. Phoebe is also here in the chat Phoebe, if you want to wave. So love having all the members of the team here. All right, well, Sarah, how about you kick this off and then we'll kind of get into what we really want to cover today. Lots of things to talk about.
You bet you bet you guys. We, as all of you hub members know, the hub chatter has been loud with what is going on in the world with tariffs. What does it mean for me? What does it mean for me today? What is it going to mean for me tomorrow? We see your. Your questions. I feel. We feel your stress.
Right?
We have been on the phone, we have been collaborating and networking with all of our points of contacts, our industry experts here in the States, overseas, and we just. We want you to know that that's what we're here to do is, is give you the information that otherwise you might not have access to grandma at Easter. Might have gave you her two cents of something, right? You might hear something on the news, but at the end of the day, we need to talk shop, we need to talk retail, we need to know what is happening in China. What does it mean for you guys and Q4. Every year is a battle. Amen. I mean, it is a battle. Every year it's something different, I promise. I know it was in my retail business, and I'm sure it is in yours. This year it's going to be another battle. But the whole idea is that you're not going into the battle with a slingshot, right? Like, you're going into it with the Swiss army knife of resources here that the boutique hub provides, and that is coming at you with education, resources, connections. It's not always what you know, it's who you know. So that's why we wanted to kick this off today and really, like, start with the hot topics of, you know, what are tariffs? What is it meaning to me? And what, how Do I prepare when I get off this call? Like, what action items do I really need to be taking? So, yeah, I hope, guys, we're excited and we're ready for some questions. We're going to do some Q and A at the end.
Absolutely, yeah. Keep preparing your questions, guys. We will do some open Q and A once we get through kind of some of these thoughts. But ultimately the goal here and really everything we do at the hub is, you know, no fluff. We want actual information that is from boots on the ground. And we just really want to make sure at the end of the day, the goal is simple. It's to move you from kind of fear and uncertainty, which we're seeing in a lot of places, to a path of clarity and you know exactly what actions you can take after today and you can move forward with confidence. And the goal of today. I just want to set this tone. There's no, you know, political undertones. We're not going to argue with each other about those sorts of things in the comments. That sort of thing is probably not going to be welcomed here, but just really getting down to business and understanding what can we do next and how should we be thinking about things and what is actually within our control right now. So to kind of kick it off, Dane, you've been speaking a lot about this topic so far, so I'd love you to introduce kind of what we're seeing in terms of shifts in retail right now.
Yeah. So I think that what's important is to first do a little bit of a reality check. Right. What is actually going on? Going on. And so my first thought is, right, we tend to in retail and retailers have a funny thing that anything that happens, right, it's raining, it's drizzling outside, that impacted my sales. Right. Every little thing really feels like it can derail your business. And now, of course, we have this giant news about a lot of information coming at us, but what is the reality? So here's where we're at right now. We have not seen consumer spending drop off just yet. And I think that's really important to acknowledge because a lot of people are feeling what's happening right now, but sometimes we get caught up in the fear and the panic rather than really looking at the facts. So there is some good news. There's opportunity. There's still opportunity to sell. And the economy is not slowing down. We just came off the biggest holiday season of all time. We're, you know, trailing nicely for the start of 2025. But let's talk about the bad news. Right. And here's where I want to kind of level set this. Right. The tariff is the big word right now. Tariffs, tariffs, tariffs. But what we're really seeing is the US Involved in a trade war with China. Right. And that is just going to be a little bit of the new normal for the next foreseeable future. And so why I think that gives us an opportunity is right now, it gives us the chance to change our mindset and to lock in. Right. And we can do two things. We could hope and pray that this is going to go away in the next month or two, or we could realize that there are going to be a lot of ramifications for the economy at large. But what is actually going to impact boutiques? Right. And that's how we always want to think about it. If you're a home and gift store, how is this going to impact you? If you're a women's fast fashion store, how is this going to impact you? If you're a pet store? Or what will this look like for your business? And so just because we're seeing a headline about how something is impacting the global economy or even the US Economy or even retail at large, that doesn't necessarily mean that that will be the same impact it will have on your store, your community, or your business. So when we come into this, we know there are going to be disruptions to trade. We know we're going to see price increases, and we know that we're going to have to be nimble and adapt. However, what we don't want to do is get into panic mode over things that may not actually come to pass in your specific business. So we're going to hopefully go over some strategies, some tools that we can actually use to prepare ourselves as we move into the end of the year. Right. Especially as Sarah said, going into Q4 this year, what are the opportunities, what will be the challenges, and what moves do we have to make to get ready?
All right, awesome. Well, Sarah, let's. Let's pick it up from there. So let's talk about, you know, some of the things that we're seeing and we're hearing. And Dana think you set it up nicely. And keeping in mind, there's people here, you know, from Canada, from America, from other countries. So we've got a little bit of a diverse crowd that everyone kind of plays their own unique piece in this.
Yeah. And I'll say as we, like I said, we are, we are on the phones. We are working with many different vendors, resources, our connections in la, our connections in China. And, you know, I just want to kind of open the floor to what we're hearing. And, you know, I was just having a conversation actually, just got another text message from one of our brands, Jane Casper, who is in the shoe industry. And she's saying, yes, this is increasing our prices. And because of delays, they're even actually now shipping by air. So that's another 600% increase in, in products, in pricing. And that's. She. Sorry, she is. I reached out to her again earlier and she's like, oh, I got more, I got more. She's got so much to say on these topics. And then talking to our connections in China, we actually had a man foot on the grounds over there just, just a couple weeks ago. And, you know, going in and working with the warehouses and the manufacturers and some of the big ones, they, they've already shut down the smaller ones. I, you know, I use the example of you guys as small businesses. You are, if you're in a small boat out on the water and you need to make a quick turn, you can, right? You're not a yacht. It doesn't take you forever to turn. So those smaller manufacturers, they're more nimble, just like you guys are. And so they're seeing, they're seeing a lot of things happen. What, what his he's saying, though, is because of the current state here in the United States specifically, there's a lot of manufacturing happening. The ports over there are busy. They're just not coming our way. So that's the reality. We're seeing things slowing down on the West Coast. We're seeing them in LA and Seattle. It's already slowing down. And they're saying pretty soon it's going to be slowing down on the East Coast. Now, the ports over in China are still busy. What does that mean? It means that they're working, they're doing things unlike during COVID when it all shut down, it's just they're not shipping it here. So we want to identify the fact that what is coming in Q3 and Q4 could mean smaller quantities available for us as the small business owners here. Right. And it could mean, it could mean a lot of different things. Production is halted. That was one of the things Jane Casper was talking to me about. She goes, there's. They're basically a lot of manufacturers are pausing or they're, they're just not exactly sure what they want to do here in the States. Why?
Well, some.
Same with us, right? How Much is it going to cost me? We don't know. So do I wait? A lot of them are waiting. What's the labor cost? What's, what's all, what's happening at the ports? Am I going to be, is there extra freight charges, different things like that? There's so many unknowns that right now some businesses that maybe were teetering financially to begin with don't have the pocketbooks to take the risk. So that's a game that everybody is playing. And when we look at this as an opportunity for you as a business and you're saying, okay, I'm going to need products, what, how do I handle these things? We have some choices we're going to make, right? Are we going to absorb these costs? Are we going to pass this on to our clients? The brands are saying the same thing to you. And some brands took a stance at the beginning is like, nope, I'm not going to pass this on. I'm absorbing this. But that's also when we kind of thought that was maybe a shorter game. Like Dane said, this does not look like it's ending right now. So as we kind of talk over like the state of where we are, there's just so much uncertainty, raw menu, raw material volatility.
Right.
That there's just so many things that are unknown. So I do just as we're going to uncover like some opportunities for you guys and give you a roadmap here in a little bit. But I just want to kind of say it's not as easy as well, there's always going to be product and I'll always be able to get it. We've, we've played the game for the last few years, about 10 years now that you could place an order at a market and it might beat you home, right? It might, you might place an order in LA and it might actually beat you back home. The, the tides are changing and that, that's the landscape that we, you know, I can't, I'm not saying it's completely gone, but we do want to open your eyes and ears today to the fact that you're buying patterns going forward are gonna, are gonna be shifting.
I just want to jump in and add a little bit to that. Sarah. And I think, you know, to, in addition to everything that you said, just add on. What's really important to know is your best selling vendors and we're going to talk about metrics and reports, but your best selling vendors, I think step number one is having a conversation with them about, hey, where Is your manufacturing taking place? Because it's not all vendors that are impacted. There's a lot of vendors who do not manufacture in China. There's a lot of vendors who are trying to get out of manufacturing in that space. And so there are a lot of vendors who are not impacted. And we will. I know, Samantha, you're going to hit on that in a little bit as well. But just knowing kind of what is the lay of the land of your best selling vendors. For example, I know Mud Pie sent out an email was that maybe yesterday. Some of you are probably mud pie vendors and you're kind of seeing some of those start to trickle in. And we're also seeing a difference in what's happening in the home and gift space versus the apparel space where home and gift orders so much further in advance. And so those of you in that space saw the impacts quite rapidly, even on orders you'd already placed where in apparel where it's so much faster and there's already so much product already stateside, those impacts aren't really landing yet because the product is already here. So just knowing exactly who your best selling vendors are and where they manufacture and what their specific situation is really does make a huge difference. But as Dean and Sarah both mentioned, you know, it is kind of a timeline of we could see some broader impacts really soon.
Yeah. And before we move on, I, I just feel I owe it to you guys. I told you, we are, we're your eyes and the ears. So I'm going to just read the text that Jane just sent because we do want to bring you real time information. And she just said not only are they seeing 600% price increases, she's also saying many of our factories are now asking for full payment in advance because of the high number of cancellations. So these are conversations as you, I'm not sure who all of you are. Most of you look like you are. You are retailers. I'm sure there's some brands that have jumped on too. And I may have missed you, I apologize. But for those of you guys that are retailers, these are conversations we want to have so you, you can better understand the people that you are sourcing from, like what they're dealing with. And I can tell you the Jane Casper's of the world have your best interest at heart.
Right.
They are treating you like you're their VIP customers. You have VIP customers and you want to bend over backwards and do what you can to that for them, to save them as clients.
Right.
And customers. Jane, as a, as A wholesaler is. Looks at her resale stores that. Retail stores that way. Right. But at the end of the day, she also has to go back to the drawing board where she's getting her products from. And now they're demanding her paying up front, everything up front, because so many other people are canceling looks at her resale stores that. Retail stores that way. Right. But at the end of the day, she also has to go back to the drawing board where she's getting her products from. And now they're demanding her paying up front, everything up front, because so many other people are canceling. So those are things that. And this is changing every day. So just as. Just as that, you know, okay, I can better understand and, and. And empathize with the whole state of the industry. So those are things that. And this is changing every day. So just as a. Just as that, you know, okay, I can better understand and, and. And empathize with the whole state of the industry.
Yeah, go ahead, Dane.
Yeah, no, I was just going to say that really what, what is interesting is we have to think about this as a whole supply ch. Vendors are potentially just as worried as you are and potentially feeling the effects even sooner. So it does really create a moment for conversation, for compromise, for partnership now more than ever. So, you know, these are the conversations that we want to start having now with our vendors. And it also does leave some room for opportunity. Right, because there may be opportunity to strengthen relationships with certain vendors, lean into those buying programs. You may even have some more open pack opportunities or merchandise that they didn't used to have available to you that now will be because, you know, they're relying on you to take those goods. So there is opportunity here. It's not all doom and gloom. There definitely will be moments of opportunity, especially with the right vendor partners.
Yeah, for sure. You know, just coming off of market, we were there in Nashville, you know, back in March, and conversations there were a little bit different than they even are. I was April than they are today. But the biggest thing is conversations. You guys hit on that in the relationship. I do want to talk about from the education piece of like, some of the terms that we hear getting thrown around and what they mean. So I know a lot of retailers are like, I'm looking for things that are made in the usa. Well, that gets pretty sticky, right? Because made in the usa. I'm looking at danger, you know, maybe denim, but I'm like, where did the buttons come from? Where did they get the thread? Where did that all come from? So some of those products were sourced, the materials are coming from overseas but then assembled in the United States. So we can't have that really like easy button. It's kind of like with food, you know, if you're like healthy, well, what does healthy mean? And so we want to have those conversations, relationships, the brands to get to know better what that means for you. So questions that I would really lean in and ask if I was a retailer right now is talking to my brands and saying one, you can ask for Made in the USA and they'll give you some information about those. But the thing that you're probably going to be wanting to know is is it a tariff good. So if it's non tariffed, it could be from China, it could be from somewhere, but it's already here stateside. And if it's your stateside, then they're not going to be adding on those tariffs because those weren't applied when it came. So you can still get those goods at a great price. In a few minutes I'm going to share the names of the brands that are in the boutique hub that are providing non affected products. Which just means there hasn't been a tariff added to it yet. So that's going to be, you know, a great opportunity for you there. But just key questions to ask. Number one, don't stop sourcing, go to market, go talk to those brands, get on the phone with them, you know, send them an email, reach out to them in the Facebook groups on the boutique hub. Go to Hubventory DM them, ask, will there be product increases? Do you have product right now that's not affected by tariffs? Can you add those fees as an additional or separate line item so I can see it outside of the actual product? And then I would ask too, what about existing orders? Anybody place that order with you? Is it here in the US or is it now going to be subjected to tariffs? And then what if I want to place a future reorder? So really like I said, we're creating a relationship with these vendors that's going to help us communicate and understand better. So let me drop some of those because I just teased them of what are some brands that have reached out to me personally that said, hey, I've got goods that are here stateside and I would love for people to buy them. We've got those products Pressy, which is a jewelry company, maker's shoes, they ship out of South America, Makeup junkie, she's made in, they have a factory in Texas. So I'm super proud of that. We've got Nash Gray, Moonrider, Stifeld Boots is in Mexico. Haha Mama, She's a Wisconsin brand. Ashley Pixie, Mood, Golden Lily, Costa Threads Lady Lavendale, Cuttlefields. I could keep going on and on and on, but there's a lot of great opportunities for you guys to be working with brands that have non affected goods that you can purchase.
Now Samantha, I want to just jump in really quick. I don't know if you saw this, but Joseph from Trebien is here in the chat and he just said we switched most of our production to be sourced in Mexico for that reason. That's another really great longtime hub member who would not be affected.
I'm adding you to my list, Joseph. And then for brands, I'm glad that you said that because I do see a lot of brands in here too. And for brands like what are things they should be doing? And Joseph, you hit it right? He's looking at his his Runway. Joseph got a company called Trayvon. His wife also has a wholesale brand company and Phoebe's gonna be dropping those links for, for you guys. But what we've got to look at is can as a wholesale brand, can you move your manufacturing, can you move your system for your supply chain? Do you have enough space? So one thing I want to call out to you guys, June 17th in Dallas. Dallas Market center is going to be hosting a onshoring slash near shoring event. It's at 7:30am at the trademark. So that's going to be falling during that gift show. That's a great opportunity if you're looking for sourcing. Like I said, near shoring or on shoring, which typically just means that it's coming from Mexico or South America where it can make transit by truck or train instead of by air or by water. So that's going to be example for you. But retailers keep in mind when we talk about made in the USA or sourcing, China's got 80% of the cotton is made in China. And so that's where we're kind of feeling that of like well, even if we don't manufacture it there, if that's where the cotton and the fabrics and the textiles are made, how are we going to adjust our strategy? And that's where we've really got to pull together, talk and look for opportunities to change those supply chains. Yeah, Sarah. Yeah, I was gonna say one of the things that I saw here next that I kind of wanted to ask and I'd be interested really to ask Our attendees is how many of you are talking about tariffs publicly? I feel like, you know, Ashley, you said you heard from some brands. I've heard from some brands, but a lot of people aren't talking about it and I think it's because they don't know what to say or how to address that. I'd be interested for from you guys of like how do you feel about that or do you feel comfortable talking about it to your customers? And, and how are you navigating that?
And I would love to hear from you guys too. In the chat, I see them coming in. We just had a big discussion about this. There was a huge thread a couple weeks in the hub and, and the brand conversation. Obviously you should be talking about it to your retailers. I see Kathleen, I see you here as a longtime hub member, not impacted. So if you're not impacted as a brand, tell your customers, Retailers, however, the feedback that I'm getting is they want to keep their retail space a positive. You know, kind of be the place where you can go escape from some of that negativity or worry or fear. And anytime I think about that, you know, I just go back to the idea that you've got to be the energy you want to attract. You've got to be the, be the space. If you want your space to be the place where people come and kind of get the, the break from everything else in the world, you've got to show up as that energy. And going back to the recession in 2009, I always loved this stat. They say that lipstick sales were at an all time high in 2009 because it was one little way that women could come in and treat themselves. Maybe they didn't have cash to buy something big, but by gosh, they were able to buy something small. And so I think retailers showing up with maybe a different assortment plan or just testing out a few new product lines in a way that people can still treat themselves even if they are going for the bigger purchase, which again we're still seeing the bigger purchases happening right now. But just to think about what does that mean and how you show up for your customers.
Yeah.
And Ashley, I think there's a way, and I saw another Ashley in the chat just put this in. There's another way to speak about tariffs that doesn't have to address it directly with your customers, which is support small business. Right. I think you're going to see a lot of people that are going to want to rally around small businesses, community minded businesses. And don't forget like Sarah said you are the speedboat and these big box retailers are the cruise ships that can't turn. So they're going to get hit really hard. And so home and gift. Right. Target and Walmart said that they could be seeing. You're going to see a lot of people that are going to want to rally around small businesses, community minded businesses. And don't forget like Sarah said, you are the speedboat and these big box retailers are the cruise ships that can't turn. So they're going to get hit really empty shelves this holiday season. 87% of that product comes from China, their holiday product. So that may give an advantage for, you know, local gift stores, local home stores and local boutiques to really be able to gain some market share. So again we want to look for these little nuggets of opportunity to and definitely be small business, community minded.
I think that's so it's a great positive way. It's a message we're already sharing. Being community minded and focusing on supporting small business versus leading with, you know, fear or there's just so many thoughts and opinions and not everyone I guess sees the perspective of what's happening inside of the industry. So that's really good. Dane, when you also look across the industry, what do you think that strong boutiques are, are doing differently? Like how are they showing up differently?
Yeah. So you know Ashley, you talked about looking at your best selling vendors. It's also really important to look at your slowest selling product and merchandise. So really across the board, I think the people that are coming into this with the strongest mindset are starting to look at this as facts of their business and the numbers of their business. Right. Because we want to make sure that we're tracking how your sales or your receiving or your inventory levels are, are actually being impacted. So here's a great first step, right? Look at your last 90 days of sales and receiving. Okay? See what is moving for you and what is giving you ROI and what product categories are just maybe a little bit dead in the water. And remember, we want to always look at our sales versus our receiving. We can't just look at sales in a vacuum. So just as important as it is to know your bestsellers because that's where you're going to want to invest. Make sure you place pre orders, make sure that you're keeping those vendor relationships strong and buying into those vendors that are, you know, bestsellers and supporting your business and have great sell through and then the slow sellers, product categories and vendors. This is a nice time to start walking back from those. Right. We don't want to be investing money in either slow moving categories, non ROI producing categories, or vendors who are just not producing return for us anymore. So it's just as important to know what the slow sellers are as it is to know your best sellers that you can invest there.
Can you elaborate even a little further? I'm sorry, Samantha Dean, can you elaborate even a little further on just the value of reporting right now and understanding numbers? Because I think there's, you and I had this conversation this morning actually while we were recording a podcast. But I think there is a tendency in this industry and, and I'll say for myself personally, I've caught myself saying those terms. I'm not a numbers person and I hear that from a lot of retailers. And if there's ever been a time to become a numbers person, it's today, it's now. Because I think there's opportunity hiding within our numbers that maybe we just aren't familiar yet. What other reports would you say we need to dig into right now to really understand what opportunities we might find?
Yeah. So Ashley, when I first joined the boutique up, one of the first things I dug into and if you are a member, I so strongly encourage you to go into the training library. We'll show you how to get there. And in the profit plan, there is a company scorecard. Right. And so these are the metrics that every single week you should be tracking things like your margin, your initial markup, your sales. These are what we want to track week to week. So let's talk about pricing. Right? We're, we're talking about how prices are going to be rising. We have to understand what your initial markup sits out today. That's what you price your goods at over the wholesale cost. We need to know where that sits today and track how it will change with the tariffs and the increase in prices. Because one thing that we can't see is your initial markup drop down too much. Right? That's your profit ceiling. So when we're looking at pricing, we're going to have a tendency right now to say, I can't raise the price, my customer won't pay for it. You know, I'm nervous about these price increases, but I would be more nervous of seeing that initial markup drop. And if you're not raise the price, my customer won't pay for it. You know, I'm nervous about these price increases, but I would be more nervous of seeing that initial markup drop. And if you're not tracking it week to week to see how it's progressing. You may lose sight of it. So I think the retailers that are really locked in are tracking these big metrics week to week and seeing how their business is being influenced by everything and then responding with calm, you know, actions to what the actual numbers of their business is telling them. So I'm just huge fan and proponent tracking it week to week to see how it's progressing. You may lose sight of it. So I think of the company scorecard. So really go check that out.
We'll get that. We'll have to drop that in the email when we're done today as well. Just so you guys have access to that. Those of you who are members to that point, I know that I hear from you and, and you can maybe tell me this in the chat. If this is you. Have you ever thought there's a new boutique that came into my town, they're barely selling their products at just over wholesale and maybe there's been a tinge of doubt in your mind that, oh, gosh, my customers are going to go there and support them or why are they marking things up so low? Are they going to, you know, is that going to affect me? Has anyone had that thought, that battle? I hear it every week. I hear it literally every week from retailers. Oh, what about that boutique that's just selling above wholesale? And I just, you know, to your point, Dane, it's not going to be possible to do that and operate that way in this type of season. So the fact that you guys are here, the fact that you guys are hungry for information, you want to know your numbers, you want to understand your markup and your margin tells me that you have a huge advantage to somebody who's just marking things over wholesale because that's not going to work going forward. You have to know the margin. In the meantime, Samantha, let's continue to talk about this. What we're seeing strong boutiques doing differently. I know you're visiting with boutiques every single day. Also, inside a boutique of black, there's a lot of strategies that are working in there right now. How are those boutiques? You know, Dane talked about the number side of things and the report side of things. Can you talk about the marketing side of things and how they're showing up differently as well?
Yeah, yeah, for sure. If we have not met on a boutique of black call, like I said, we, we were talking every day and we're getting to look inside of people's online presence. So, you know, if you're at that point with that brick and mortar and you're saying, hey, that's going great. Where can I sell so that I'm reaching outside of my zip code, outside of that two hour driving distance. And so with online sales, if you don't have a e commerce site that's working really hard for you yet, let's dig in and let's develop that because your website is another sales rep for you. And if she's not pulling her numbers, it's because she hasn't been trained. Right. And so what we can really do is get that site to get convert for you because there are people all over the United States that are looking for your product but they can't find them. So advantages that I'm seeing specific to tariffs with E Comm, you know, you've got this great opportunity to reach people everywhere and we really want to get them when they're scrolling that social scroll. And something that's so interesting, we talk about Temu and we talk about Sheen and they're getting affected. Now I know you guys have seen the post where maybe that $3 product now has an $80 shipping for tag on it and suddenly that T shirt isn't worth $83. And so that's going to cause a change. So because of that, something interesting that's happened and this is an opportunity for you is that Sheen and Teemu are pulling back their advertising dollars from Meta. They're not pushing their products this hard because they don't have the opportunity anymore. Nobody. That shirt is not worth $83. So as those dollars are coming back and the demand on ad space is dropping, that means the cost, cost of ad space is also going to drop. So for you all, you're going to have an opportunity to be able to run paid ads at a cheaper price. And so that to me, I heard that and I got so excited and I was, I've never been waiting for this day. And you know, we could say all kinds of things about all kinds of people, but I'm like, if this is an opportunity, let's take it and let's really capitalize on that.
Yeah, I echo that. Oh, sorry, Sarah, go ahead.
I was just gonna say if anybody was not paying attention to what Samantha just said right there as I. That it was, that was life changing for many, many small businesses, especially Randy. I see you clapping your hands because digital ads are expensive, right? Like we, we've looked at it. Facebook, Instagram, they've allowed us to play in their sandbox for free for Years, four years. And they have now said, no, this is a money game. Y' all are gonna have to pay to play. And then enter the Sheens and the team who's have capitalized on that. And they have take. They have ran those ads up.
Now.
If everybody just missed that, they be. They're being priced out of it. They're. It's not worth it to them to, to play in that sandbox right now. So therefore they're pulling those dollars, which means there's not as much demand there. Which means, right, we, we're going to be able to capitalize on that as small businesses. We have to be ready for that. It, it is long gone are the days that you build it and they will come.
Right?
We have got to drive traffic to our sites. We've got to drive traffic into our stores. And people are inundated with opportunity, the swipe of every thumb. They are inundated with a new option to buy.
Right?
So we've got to get in front of them where we can. So that's what Samantha is talking about. This, this is if there's a shining lining in this. That is one of them. That, that is one of them. Sorry, Sheen and Timu, you know, I mean, nobody's crying over that on this call.
It's.
We're excited about the fact that now all of a sudden they gotta get in the ring, right. And pay if they're gonna be here, but they're not. They're choosing to back out. So that's awesome for us.
Yeah, I'm excited.
Joan Warren, I see your chat. Where is Jeff in his leopard pants? He should be here for this conversation right now, right?
He's helping somebody buy ad space at a great price. That's what he's doing right now, Right.
Literally as we speak. Well, that's exciting. I mean, the Sheen and Teemu and the reduced ad cost I think is one piece and I mean just leveling the playing field. Dane, you said the same thing about big box stores and Target and all these other places. Sheena, Timu, we're going to see all of these prices really start to level out. But I just want to add in this point, I'm a big proponent when we talk about this in retail boot camp and setting your pricing is value based marketing in relation to your price. So again, I'm a broken record if you've been through boot camp. But the idea of your price is the perfect place, the equilibrium between where the perceived value and pleasure of owning that product outweighs the Perceived pain of that consumer spending their hard earned money on the product. And so what this is going to challenge you to do? I mean whether you have to take an increased price on some tariff goods or not, no matter what, this is our time to really evaluate. Am I using value based marketing? So am I going back? Am I merchandising my goods properly? ICE is the perfect place, the equilibrium between where the perceived value. Am I using stock photos or am I, you know, taking really high quality photos? Value and pleasure of owning that product outweighs the perceived pain of that consumer spending their heart. I mean there's a huge difference. What do you think is more valuable, a stock photo or a high quality photo that you've taken? You can tell me in the chat. It's going to be a high quality photo you've taken earn money on the product and so what this is going to challenge you to do? I mean, whether you have to take an increased price on some tariff goods or not, no matter what, this is our time to really evaluate. Is walking into a store that has just a straight bar rack and everything in one line or a highly merchandise store with mannequins and layers and vignettes and table displays, which one's more valuable? The merchandising is more valuable, right? Just like the high quality photos are more valuable. How about what's more valuable? You show Am I using value based marketing? So am I going back? Am I merchandising my goods properly? Am I using stock photos or am I, you know, taking really high quality photos? I mean there's a huge difference. What do you think is more valuable, a stock photo or a high quality photo that you've taken? You can tell me in the chat. It's going to be a high quality photo you've taken. Is walking into a store that has just a straight bar rack and everything in one line or a highly merchandise store with mannequins and layers and vignettes and table displays? Which one's more valuable? The merchandising is more valuable, right? Just like the high quality photos are more valuable. How about what's more valuable? You showing up and just showing photos of your products on social media or you going live and doing reels and doing try on sessions and doing example videos of how to wear and use and enjoy your products? What's more valuable? Is it just dropping the photos on social media? No, it's not. It's video. What do you think is more valuable? I'm just going to keep preaching. Sorry, I'm on A soapbox, guys. What else do you think is more valuable? Is it just pushing products every single post you make or do you think it's showing up as the face of your business and talking about the concerns that you have right now or sharing up and just showing photos of your products on social media or you going live and doing what it means to support a small business and how much you donated to the little league teams in town last year. What's more valuable, what actually connects to people is not sharing your products. It's you building a relationship with your customers and showing up and being authentic and not being perfect, quite frankly, building community and connection. Connections and relationships. So all of those things combined are value based marketing. So no matter what the price is, the price can go up all day long as long as the value continues to increase. That's why a luxury market in this world exists is because they have a perceived value that's higher than what they have on a Sheam or a Sheen or a Teemu type product. So that is totally within your hands and within your control when it comes to your marketing. Makes me really excited.
And Ashley, first of all, preach. The other part of this is customer service has to be on point. So if you have a storefront, I don't know how many people here have a physical store, but people are walking through the door and if prices are increasing, so too does the service and the selling that they're getting. Right. So attention to details, even something as simple as bringing, you know, a glass of water or a sparkling water, understanding the product in your store, the value of it, being able to connect with them and just give them an experience that is so important. The last thing that they want is to walk in the store. No one says hi. And, you know, that's what they expect from these big, you know, empty stores. Right. You are their connection. So that customer service piece of it, it sounds a little, you know, old fashioned, but service is going to be a tremendous part of really being able to. To kind of again, stay competitive and stay ahead.
Oh, absolutely. Dane preach. Completely agree. All right, Sarah, let's continue this conversation. Just again, going back to, you know, the value based mindset and really telling a story with your products as a way to stay ahead.
Yeah, I think, and we've touched on it a little bit. So I just, I just want to remind people your products matter. Your store matters. You pay bills, you pay taxes in your area, you're employing in your community. Your small business changes the lives in your community.
Right.
And you have a Story to tell. We talk about this all the time. It's time to tell the story and be loud and proud about it. And don't just say, I, yeah, I own a store. No, you do way more than that. You have got to be loud about that right now and loud about your products. If you are sourcing products that have a story behind it, please tell it. Please tell it. We were talking about farm fresh eggs this morning in our meeting, and the difference between this was. Dane mentioned it. The difference between when egg prices went crazy. It's like, yeah, the eggs in the grocery store at 7 bucks. Or, you know, little Nelly who has a bunch of chickens down the road and their farm, you know, raised eggs and all this deal. I mean, she's always been selling $7 eggs. Now is. Is her. Are her eggs, you know, do they. Do they. People think, oh, those are way too expensive. Now. The fact is that she's putting love and attention behind those eggs. You are putting a story behind your product. Whoever made, whatever it is you're sourcing, there's a story there. You don't need to gatekeep that. That is part of that value. We've got to bring that back to our customer. And the thing is, if you're not proud of what you're selling right now, I'm going to ask you why you're selling it.
Right?
Like, when we're looking at some of these opportunities, when we're looking at some of the opportunities right now, and one of the questions before is, like, what are some of these strong retailers doing? They're getting really, really intimate with the products they have and saying, do I want to continue to do business with you or not?
Right?
Like, we're going to attract some things and we're going to repel some things. We've got to really say no to some things that aren't to say cut the mustard, aren't cutting the mustard, are not paying the bills. And I think there's so much opportunity there. When you find those things that your customers will relate to that are going to put out the extra dollar for because they're valuable. They're. They serve a purpose for them. They solve that problem. You've got to remind them of that. And let's be honest, I say this all the time in retail bootcamp. When I get dressed in the morning, I can put outfits together. I can solve that. Like, my issue, my problem, whatever that might be. Not everybody's the same. Some people look at a pair of black dress pants, are like, what would I wear with that. I have no idea. Right. Or they might look at, you know, whatever it might be for home decor and gift or all you guys that sell Christmas decor. All of those things. Like, gosh, I don't know, could I introduce that into my house? I'm usually snowman, but could I do reindeer? I don't know. Right. You've got to be able to tell that story and help them understand what that value and how that is going to fit into their life. That's a big piece. The stores that just sell trinkets to sell trinkets, people aren't going to care right now. They're, they're just not, they're not because that, they're not going to be driven by the price anymore. That price is gone. So I think the whole, you know, where's it made at? Who made it? What's the material? Why is it different? Like understanding that. I mean I am a big follower of the whole Levi's gene evolution. When they came on the scene, right? And like they prided themselves on quality denim, they did not go, they did not go cheat. They and their jeans lasted forever. Forever. And that's what they built, were built on. They didn't get on the train of like, oh well, nope, I could get cheaper denim and sell a lot more of them for less. No, they didn't. And if you're, if you're selling quality goods, be vocal about it and tell your staff about it. Make sure they understand the story that goes along behind it too. And I think right now the consumer, the consumer is looking for that information to validate their purchase. And it's up to us to, to, to give it to them.
It really is.
It's up to us to give it to them. And if you've got some products in your inventory right now that are stale, that are stagnant. Dane touched on this a little bit ago. Action item. You guys get rid of those things to create cash right now to go source the products that you're going to be able to get in the future. Very, very important. Very, very important. Do not sit on some of those things that are not, that are not showing value to your customers. Dane. I see you. I see you.
Well, someone put in the chat, should I not, Should I hold on. Markdowns right now. And the answer is no. Right? That's. That goes with the same concept of you want to move out the bad sellers, right? The slow sellers, slow turn, you know, poor sell throughs. We want to get those out. We want to create Demand for them, because they don't really have demand. And then we want to take that cash and we want to go invest it back in great merchandise that you know you need and you know is going to sell. So I always think about this visually, right? Think about the slow sellers that have been sitting there for a month, you know, two, three, four months and haven't sold. It's dead inventory. It's cash just hanging out, collecting dust, and we really want to move that. So don't be afraid of a markdown now, because then what's going to happen is people are going to walk into the store, they're not going to see freshness. They're going to see the same old, same old. You want to think as a markdown, as an opportunity to really get cash back in your pocket that you could go and spend.
Yeah. Say, let's go spend it. You know, we're talking about that of like, what are you going to do? This is the important time to go to market. If you haven't been to a show recently, recently to touch and feel the product and ask about the brand story, that's when there's gonna be the next opportunity to do that. You know, I'm looking at. I dropped that earlier about near shoring in June in Dallas for the home and gift. But if you back it up, you know, a week or so before that is going to be the Dallas apparel show. And that's when we have our boutique summit, too. We bring in vendors, and that's an opportunity for you guys to make that connection with those wholesale brands and ask them and what a lot of people like to do. That I've noticed, and I know you guys could coach on this all the time, is when you talk to a brand at a show, at a market, if you're there at the boutique summit is either take notes or record them saying it and bring it back to train your customers. You know, you kind of feel creepy. You're like, can I record you saying that? I was talking to Poppy and Pout earlier and she's like, people said to me all the time. And I let them record it so they can bring it back and train the customer, because that's so important. So if you guys don't have that on your calendar, for sure. Add that to a to do of plan when your next market trip is going to be so that you can meet with those vendors and find out about, you know, maybe changing kind of your supply chain or just if they've changed their supply chains, you're Going to want to ask them in person about that, too. And that's going to be June in Dallas.
And I totally agree with that.
What?
Oh, go ahead, Sarah.
I was just going to say, I. I've been in your guys's shoes before, and I'm sure there's been a time for you guys that you have went to market and you went and looked and thought that line would really hit with my. With my customers. I want to bring that in. However, I'm looking at my budget and it's not there. And then you go back to your store, back to your warehouse, and guess what? You look at a whole rack of crap that you're like, oh, there's my money. There's my money sitting there. And whatever it is, that's what it. Why, why haven't I turned that into cash? That's what you do right now. If you're looking at some stuff that you're over, like, you're just over it and you know, your customers are over and your staff is over it, that is your money sitting there. That may or may not probably will hold you back from investing in inventory in the next few weeks or the next few months. That's probably going to cost you more money. The inventory is probably going to be more expensive, right? So you're going to have to create some cash flow in your store. You're going to have to create some cash somewhere. And that inventory that nobody wants right now and hasn't wanted it for six weeks, they're not going to want it in another three weeks. So at this point, cash is better than waiting out on this margin, getting whatever cash you can possibly for it right now, Cleaning house with it, spring cleaning. Who loves a good spring cleaning? My gosh, it just like clears the mind, right? I never want to see those shirts again in my life. Make them go away. That's the attitude. And then you take that money and you have that to pay bills, reinvest, do something else. But I think that's one of the big misses right now that not a lot of stores are doing because they're afraid. They're like, well, if I can't get inventory, at least I have this. Well, if that is. I mean, if we're looking at it like food in the refrigerator, how still, what does that feel like? I open that refrigerator up, I see the same food that's been sitting in there for eight weeks.
My.
Like, now what am I going to do with it? Nothing. So clean it out.
I just. So many good analogies. I just Picturing the leftovers that no one in my family will eat. But you're right. And I just want to reiterate, when we say move it out, I'm talking about a specific. We are talking about a specific markdown strategy, not a blanket sale across your whole store. The retail boot camp. It's giving me the sweats. As I think about this. This is not a blanket sale because we do not sell the diamonds with the dirt. We only sell the dirt on sale. And someone mentioned this in the chat. I want to bring this up, just the value of destashing if that's the case. If you have not restyled, reshot, repurposed, relaunched all the products, I mean, that's step number one. But then use the destash group. And I'm seeing a lot of retailers who are saying, you know, I'm unsure of, you know, buying this from X vendor right now. So I'm going to the d stash groups to pick up some fresh opportunities there too, and test out some different vendors. So lots of good things and lots of vendors. Again, the conversation I see in the chat, again, pink panache, Corky's is here. Those are another two more vendors who are not impacted. So the value of going to market, having those conversations, There's a lot of people who can help. Dane, let's go back. I want to dig into our numbers a little bit more in terms of where we can find more growth and more opportunity as people are getting smarter with their numbers. Where are some other places to find some opportunity? Right now.
When you say opportunity, are you talking about in there? Well, here's what I'm kind of see where I think that there's a lot of opportunity. Right. Where can you start developing new product categories? Right. So when you're going to market, where can you actually build in some areas that, you know, here's a great example. If you're a women's fashion store, accessories are going to become really hot. And the way to think about this is. And Samantha, we talked about this in Nashville is, you know, you may not want to go out and buy a new outfit in the. If consumer spending is a little bit down, but you may come in and pick up a new purse. It's just like the lipstick analogy, right? And so do I want to start looking for opportunities in new categories? And this may be a time to actually pivot, right. To try something that you haven't tried before. And as long as we're measuring.
