How Do Apparel Brand Agents Calculate The Cost Of Control?

Clothing brand agents and franchisees from the signing of the brand retail agency agreement, the most important thing is the profit model accounting.

It is the most concerned problem for agents and franchisees that how to make the retailer get profits quickly and make the store become a profit access mode to replicate and operate.

The key to solve these problems is the cost accounting of clothing shops.

To control the cost accounting of retail stores, that is, to calculate the profit mode of retail terminals.

Therefore, as a professional clothing brand agent and franchisee, first of all, after confirming the brand signing the contract, the first thing is to calculate the cost accounting of the shop, and estimate the investment quota, that is, investment accounting.

How to make investment accounting for a store depends on the retail price of the agent's clothing brand and the terminal location of the retail price of the clothing brand product market.

The price of the product is high, the location is high, and the cost of investment and operation is high.

When considering the cost of shops, the following investment links should be considered.

First, store rental operation.

In the operation of the rental payment of retail stores, agents have been using the lowest price as the basis of the lease for many years without considering the investment cycle and payment cycle.

In fact, judging from the rental investment cycle of store rents, the most suitable way to invest in the brand rental shops is the short term shop rent payment method.

Although it doesn't matter if the price is high every month, the agent should save the amount of investment in his own hands, lease the shop with the least money, sign the agreement in the form of the fastest payment, and do not sign the agreement of long-term shop rent.

For example, a long term rent agreement paid once a year, two years or three years.

On the surface, the rent for a year or two years is low, but in fact, there are great variables in the market's survival and brand changes in the market operation, which can not protect the investment in two or three years.

Therefore, it is the first cost accounting principle and concept to strive for the time difference of store rentals in the investment link.

Second, shop decoration (investment control)

After the operation of the whole store, the cost of decoration accounted for 10%-20% of the total investment of a single store.

Shop decoration has become a very important part of venture capital.

Over the years, agents have refused and counterbalanced for various reasons. But since 2006, with the increasing popularity of terminal retail stores and the support of professional visual communication, agents and franchisees have been able to accept the high cost of terminal decoration of the brand, and can also invest in the cost and recognize that they can benefit. This is a relatively big change in the past two years.

However, some of the overinvestment in store investment is over standard decoration costs.

From the current domestic market retail shop decoration standards, the high-end brand decoration costs in the shopping malls are as high as 2200 yuan -2600 yuan / 2500 yuan -2800 yuan in the first class market roadside shop decoration, the decoration cost in the two or three level market is 1200 yuan -1500 yuan, and the four level market is between 600 yuan -800 yuan.

The above standard basically belongs to the decoration standard of women's clothing brand, if it is men's clothing, it is necessary to add a 30%-50% on the basis of the cost.

In the early stage of shop decoration, such a large amount of expenses should be paid, but also a series of brand standards and visual communication positioning features should be accurately restored.

In this way, agents and franchisees are required to remove the investment in hardware decoration, and spend all kinds of software decoration costs.

This makes decoration not only for investment, but also for investment and expenditure in the restoration of decorative brand image.

There is no way to save on this cost, and we must be careful in increasing costs.

Third, the investment in goods is the biggest expense in the overall retail store investment operation.

It has to pay for the investment of three grade goods, the first is the investment in the early stage, second is the investment in the futures, and the third is the supplementary investment in the operation period. The three stage investment may happen at the same time.

From a proportional perspective, the investment share of 1:2:0.3 is better than the state.

This is the largest amount of investment in retail terminal stores, accounting for 60% of total investment.

Moreover, this investment has a relatively large risk. Often agents and franchisees do not prepare enough funds for the three phase of investment, and the bad timing of payment control will lead to the fragmentation of the investment capital chain, which seriously affects the later orders and supplementary products of retail terminals, and it is the key to cause shop sales to fail.

Agents and franchisees stick to their business philosophy and expect to get the biggest operating profit with the least amount of goods.

This old concept of self-employed business enables agents and franchisees to strive for the sale of single piece profits and abandon the profit control of the sales cycle of goods.

Giving up the profit of this operation cycle will add a lot of pressure to invest in the goods, and at the same time, it will bring endless supply pressure to the clothing brand manufacturers, and form a confrontation between the two sides on the goods, so that they will continue to shift to each other's risk and form the "intestinal obstruction" phenomenon of the existing terminal goods.

One side is unable to get the goods they want, nor can they catch the immediate demand, and the other side can not give the quantity they want. This is a huge problem existing in the retail terminal of the domestic trade, which affects the quality of the brand store in the sales promotion and the profit gaining.