Common Money Mistakes Boutique Owners Make {Part 3}
Feb 21, 2020
The last common mistake that boutique owners make is something I am incredibly passionate about. I am so passionate about it, I have written an entire chapter about it in my book "The Ultimate Boutique Handbook".
MARGINS.
Simply put, if your margins are too low, you aren't going to make any money. I have heard every single excuse in the book as to why boutique owners won't go past 2.5 or 2.75 on their margins. I will always tell my clients and students, you need to have a margin of AT LEAST 3X.
One of the biggest reasons I see boutiques hit a plateau is because they aren't following the 3x markup rule and they come up with every excuse as to why they can't raise their margins. Here's the thing, if you're margins are lower, you have to sell a lot more product! You can make it work, but why would you want to work harder and not smarter??? Either buy at a lower price OR increase your margins to at least 3X.
I have some homework I am going to give you next week so come back next Friday for our final post!
Here's to making lots of friends and lots of money,
Emily