Our how to start a kid’s boutique video is popping off right now. So I really want to do a bit of a follow-up here about some of the challenges that you’re going to face when you have a kid’s boutique, because they’re very unique to you.
And actually, I often get a lot of emails saying like, “Emily, do you know?” Like, I know. Let’s talk about it. If it’s your first time watching one of my videos, hi and thank you so much for being here.
I aim to provide you the most professional level of retail education available out there. I like to say that we are the Porsche of boutique education, and really, that includes kids boutiques. You are a huge part of the fabric of retail and our boutique land industry, and so I want to make sure you’re successful, okay?
So whether you’re deep in or you’re brand new, I’m going to give you some really good tips in this video. If this sounds like your jam, you’re like, “Oh, okay, I like what she’s saying,” then go ahead and hit that subscribe button because I have videos coming out all the time that are going to really help you start, grow, and scale your boutique business with a lot of success and frankly, a lot of profit.
And wouldn’t you know, profit is the first thing I want to talk about with a kid’s boutique. And I’m laughing a little bit because kids boutiques have it tough. A lot of the manufacturing of kids’ items is just more expensive. It has to be done in specific ways so it doesn’t hurt a child or baby, or it’s not extra flammable. I mean, there are true safety concerns for kids, okay?
So, I think just getting into this industry or being in it with the flavor of kids’ stuff, you need to know that margins for kids are tough. Generally, what we see is you’re going to buy an item and only double the price to make your money, right? So a $10 jammy becomes a $20 jammy. Sometimes you get lucky and find vendors where a $10 jammy can become a $25 jammy, but those are few and far between. So, you’re already coming out the gate with a harder situation, understanding that your margins will naturally be lower.
This is why we see a lot of people who have baby boutiques or kids boutiques decide to bring in some toys or other stuff. Now, I’m going to hesitate in suggesting you do that because what can happen is you get over-assorted, or you just end up having a lot of stuff for no one. I still want you to be very niche and specific, but because your margins are tight, your inventory has to be perfect. You have to manage your inventory to a T.
You can’t just buy whimsically, like, “Oh, I drank a little too much at the show, and I bought this, and now it’s a markdown.” I was just at a trade show, and I complimented these two women on their booth. I said, “You have really cute stuff.” The owner of the company, I think, jokingly said, “Oh, well, we just have so much though, how do you get rid of it all?” And I said, “Honestly, you wouldn’t have that problem if you bought it and assorted it correctly.” I didn’t say it exactly like that, but the gist was that you can prevent overbuying. It’s not that hard.
The trouble is, especially when you’re creative—which a lot of us in this industry are—you get excited and passionate about stuff, so you end up overbuying. This can easily happen with kids’ clothes because they’re so darn cute! The toys are so cute. I mean, I have trouble not buying everything for my daughter. So when we go to market or buy things, we have to be really sure we can sell it. We have to say, “This price is ideal, I know no one else is going to have this, I know exactly the customer who will buy this.” You really have to be bought into those styles and know they’re going to fully sell through.
Let’s talk about what selling through product looks like for a kid’s store, because this is where it gets tough. You have two genders, you have the gender-neutral beiges, blacks, browns, and navies of the world, right? But you’re approaching it with a two-gender format from the jump. Then, you’re carrying like 11 different sizes if you’re carrying newborn to 6, 7, or 8. That’s a ton of inventory. Much like shoes and denim, kids’ sizing is size-intensive, and that makes it hard from the start.
So what do you do with sizing? You have to be focused. If you’re just starting out, ask yourself, “What sizes did my kid wear the most?” Or, “What sizes did I feel I needed the most when I had a kid growing up?” If you don’t have that experience, ask your vendors or someone around you. Every kid is different, but I find that the most flexible sizes are in the toddler range, like 2T to 4T. My daughter has been in those sizes for a year. So, you’ve got to think about how long a kid will stay in those sizes and consider that when you’re buying.
What I generally tell most people is that buying between 6-9 months up to size 4T or 5 is a good place to start. You’re covering a large range of kids. If you want to do newborns or older kids, that’s another story, but sticking to smaller sizes helps manage your inventory.
The last challenge is that you have to order far out. You don’t have many shows or vendors, so you’re ordering for six months ahead. The first year in business is a guess, but as you learn about your customers and sales, you can place those orders more confidently.
A lot of new kids’ vendors are doing custom prints on bamboo pajamas, which is a great way to stand out. You can create custom prints for your store that are really unique and tailored to your customer.
Kids boutiques are tough, but if you love it and want to do it, you can be smart about it. If you have a children’s boutique or want to start one, I’ve worked with so many kids boutiques. I’d love to help you. Right now, my Inner Circle membership is open, and that’s a place where you can talk directly to me. You can also take my children’s boutique masterclass, where I walk you through how to design a boutique business that makes money, because as I said, it’s tight, but you can do it.
If you’re interested in learning more about the Inner Circle, click the link in my bio or comment “circle” and we’ll send the link. If you haven’t watched my first video on how to start a children’s boutique, check it out here. Thanks for joining me, and here’s to making lots of friends and making lots of money. See you on the next one!
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