SALAULA BUSINESS ANALYSIS (Second Hand Clothes)
Everybody needs to dress up. If you are found undressed you will be locked up in a mental hospital. No matter how much you have, you need to buy clothes. This business has goods that are in demand. You can earn a comfortable living without signing a contract or getting permission from anyone.
ELIMINATE THE MIDDLEMAN – BUY DIRECTLY.
Salaula is clothes donated to charity in Developed countries which are packaged by companies and sold to Africans. The middle man (Your Supplier), gets the Bales and sells them to you for hypothetically 2500ZMW or 3500ZMW. I don’t know the current price but what if the bales were actually bought at 1000ZMW or 1500ZMW? You could make 1500ZMW (2500ZMW – 1000ZMW) extra profit on each bale, which can go a long way! Personally, I would like to look at it like; I am not saving 1500ZMW, I can just buy another bale and earn profit from the bale. That is, if one bale profit is 4000ZMW, then I could have ZMW8000 (Bale profit 4000 x 2 Bales.)That is what happens when I cut out the middle man selling me right here in Zambia. I could double my profit.
Another benefit is that your supplier supplies to you because you need to buy to sell. You know what your customers buy a lot, but at times, because of fear of misusing the money, you just order to continue the business. Now imagine this, if you were your own supplier, dealing directly with the wholesaler, think about the type of clothes you can get! Sometimes suppliers will buy lower grade clothes to make a profit, but you would not do that because you know that if you buy good quality clothes, your sales would be easier and faster.
Of course before starting this you need to know the ins and outs of ordering. But I know one thing for sure; there are no taxes on second hand clothes. I don’t know about advanced sales tax but I know customs are not applicable on second hand clothes. Learn how to order slowly whilst maintaining supply from your supplier right here in Zambia.
Maybe you can also become a supplier of bales as an upgrade to the next level or as side business. The opportunities are endless but, firstly also find out if they can supply to individuals like you.
STOCK CLEARANCE AND ACCOUNTABILITY
In order to know that you are making money, you need to come up with a system to account for profitability. The only way to do this is giving your bale at least 2 weeks period to assess its profitability. Your number one aim is to break even. Inventory is almost impossible to manage in this business or account for, so the best is to use time to account for it and assess profitability.
Sell the good looking clothes at a higher price to compensate for those that will not be sold or those that will be sold at a very low price.
After 2 weeks max, you will need to clear all your stock as the new bale arrives. You will have to clear the stock by pricing it at a ridiculously low price and call it a promotion for one week. After that one week, stop the promotion and calculate the profit you have made on the bales you have introduced and see what moved fast and what did not . From here you will understand what customers are buying from you and what they are not buying from you. Using the higher and lower pricing method, you get to see what customers will buy at a certain price.
Now that the new bale has arrived, Introduce them to your stock and treat the old stock as if it was new stock and price accordingly. I am saying this so that you don’t get confused on what is new or old. In other circumstances you can keep old stock on one side or put them in a heap for people to dig in at a lower price.
Always be a learning mind, know what your customers are buying fast and know what they are not buying. As you mature in this business you should just know that customers won’t buy that ugly dungaree.
SEPARATE YOURSELF FROM THE MOB – RENT A SHOP
I know saying stop paying 12ZMW per day for the stand and start paying 700ZMW+ per month is outrageous but give me a chance to explain a little. Also do the math properly, 12ZMW per day is 360ZMW per month, so for an additional 340ZMW you can enjoy much more on efficiencies and options in this business.
A second hand cloth is a business with very low barriers to entry, so every Jim and Jack is doing it. Competition is fierce in this type of business such that it is very hard to stand out. Plus Miss Mary is noisy and has vocals. She can scream on top of her voice to attract customers without feeling shy. You on the other hand have different strengths. You won’t be able to really maximize on sales if you are where everybody is. Rent a shop far away from the others, rent a shop in a line where people conduct parallel businesses and if you can let it be spacious that would work to your advantage.
BENEFITS OF OPENING A SHOP
You will have less hustle of packing up the clothes and taking them home or paying for storing them somewhere for security in the market. Plus you can save on transportation if you deal in large quantities
Getting a shop will ensure that you can conduct business even when it is raining. Most stands in the markets are not operational if it is raining and even if it doesn’t get soaked inside, Customers cannot really run through the rain to buy second-hand clothes.
The government has moods, tomorrow you are in a stand, tomorrow they have built a mall where you sustain your livelihood or that there is cholera so stop operating or that corona-virus has reached Zambia so stop trading. If you are going to build something that endures, get into a shop.
You will stand out! You won’t be competing with other legendary dealers. You will also feel good about yourself; do you want to be hustling for the rest of your life sitting on a heap of clothes? Bad back posture and uncomfortable. Making work weighty and boring. In a shop you can even connect your laptop and watch movies when there is no business.
ADD VALUE TO YOUR BUSINESS
I know it is second-hand clothes, but does the whole world need to see me digging into it? Treat your customers like kings, help them dig for the clothes they might like and if you have a shop, arrange the clothes In such a way that the best and high priced clothes are put on hanging wires so that they can be seen and bought easily.
If you are in a shop why not buy one of those standing steamers that iron clothes with hot steam. They are less than 500ZMW, I know if a shirt looks ironed, it will definitely attract someone. Do this not for everything but clothes that move fast like s-art t-shirts and jackets etc. The steamer makes them look like they went through laundry.
When you post the jeans/shirts you are selling on social media don’t let them look like a cow chewed on them and spit them out. Iron with the steam iron. Let people doubt that this is salaula. We know salaula is salaula because the clothes look wrinkled when you post.
GET A TAILOR OR TAILORS IN YOUR SHOP
Another revenue stream is that you can offer tailoring services to your customers. Some people do not buy because something is too big or doesn’t fit them here or there. You can have a tailor in your shop, ready to charge the customer to make the necessary adjustments.
Some customers like to make it slim fit or whatever. Sometimes a nice shirt would be torn, the tailor can help them make that adjustment. Imagine going to a shop and having all those things done for you! You can use this as an extra source of revenue from your business.
Depending on the traffic your place gets, you can make extra on clothes because tailoring is also a business of its own.
HIRE A TAILOR.
Another point is the tailor can turn a torn Louis Vuitton trousers into a short you can sell at a higher price.
TIME THE WEATHER WHEN ORDERING
Fashion beats weather NOT!
Fashion does not beat the weather, if I am wearing a leather jacket on a summer day, people will be feeling sorry for me, not admiring me.
You want to place your orders just in time for the weather or slightly before. Make sure that you buy summer clothes for summer and winter clothes for winter. This will play a great factor in maximising your profitability in a period.
If you are not sure you can always buy clothes that are not affected by the weather like jeans and smart clothes, but then again their demand doesn't peak like boots or jerseys in cold weather.
GROW YOUR MARKET ONLINE
People think everyone knows about second-hand clothes. Well they don’t! People in offices sometimes don’t believe that a better quality shirt can be bought in salaula for 30% of the price he bought it for in a rip off boutique. People will only know about you if you advertise your business on social media and WhatsApp.
And when someone finds salaula for the first time they buy as if there will be no salaula tomorrow. Look for these people!
Post PACKAGES like 5 trousers and 5 shirts! (sort out your whole office wardrobe with one purchase for 750ZMW only!)
Post the pics with them steam ironed. You will see how people will flock to you.
Sorting out my wardrobe once and for all? Where are you? Do. You deliver? Bingo!
CREATE RELATIONSHIPS
Contact customers directly to show them that you have new stock. Some clients will continuously buy from you if you make it easy for them. Know their size and dress style.
Eg. Lubasi, I have something that will go with that white top you have on. Then you send the pic
Now imagine you have a 100 Lubasis' in your phone book?
CONCLUSION
Salaula business can make you money that makes you live a way more comfortable life. Do not treat it like the name salaula, respect it and grow it. Be proud of it. Make sure people confuse your Salaula business also because of the way you carry yourself.