Retail Economics 101: The Balancing Act

Most of my purchases are based purely upon impulse. Here lately, these impulses have become less frequent (not really), but increasingly more expensive (really)!

As I understand it, during a recession, the goal for most retailers is to maintain their current levels of income or profit. However, this strategy might even be difficult, because input and inventory prices are rapidly rising (manufacturers, distributors, etc are also facing tough times). With this goal in mind and operating costs increasing, it is intuitive to raise consumer prices.

But, according to Meghan O’Brien,  Department of Economics at my alma mater,

…these increases cannot simply or universally be passed on to consumers…Pricing goods based on their elasticity is a smart retail strategy during a recession…the lesson for a retailer is not to raise prices on those goods that your customer can live without or go down the street and purchase in a less expensive form.

Managing inventories at a profit maximizing levels is difficult for retailers in a recession, but critical for success. The wisest retail strategy under the circumstances is to order the minimum necessary to sustain existing demand—an ample amount of staple items, which sell frequently, and fewer of those more expensive, non-essential items. Unsuccessful attempts result in reducing excess inventory via sales and losing consumers to competitors when there is a shortage.

 

O’Bien’s tips for shoppers:

1. Now is a good time to be a consumer. You might have less money to spend, but retailers want your money more than anytime in recent history. Take some time to shop around for the best prices and services.

2. Your dollar is your vote. If you really enjoy shopping at a local retail store, don’t expect it will be waiting for you to come back if you switch your spending habits.  Choose where you will spend you dollars based on whom you would most like to continue doing business with.

3. Be reasonable about where you travel to shop; try to maximize your savings per trip.

4. Limit credit card use. Retailers may be running great specials but stocking up at 70% off isn’t saving you money if the balance stays on your credit card for multiple billing periods.

 

O’Bien’s tips for retailers (among others):

1. Don’t assume raising prices will keep your revenue stream stable during a downturn. The price elasticity of the goods you sell will determine whether you can raise prices or not. DO NOT raise prices on highly elastic goods as this will reduce the quantity demanded dramatically! (emphasis added)

2. Listen to your customers; they are your greatest asset.

Based on the article Retail Economics 101: Lessons and Strategies of a Recession

 

New Virtual Boutique on Read My Lips!

I decided to create my very own VIRTUAL BOUTIQUE  here on Read My Lips! It includes a collection of  new, gently used and vintage pieces that I think you’ll love. I still have quite of few pieces to add. And, once I get my new camera for Christmas (wink wink), I will put some looks together with some of the pieces, rather than just hanging each individual piece up, because that’s kind of boring…

The links to the items and purchasing instructions are in the sidebar. Here’s a question for you:

You’re An Insider

Pss. Here’s a little secret. I have an internet-stalker-like suspicion that Forever 21 is going to have a pair of over the knee/thigh high boots online soon. You’d better keep a close eye on the site, though. They’re likely to go fast at that price ($44.80). Get your pocket-books ready!

I usually only share  juicy little tid-bits of  information like this with insiders. Today, you’re an insider. Ta ta, for now!

The Back Room At Carol’s Daughter Flagship Store

The Back Room Hand and Foot Spa at Carol’s Daughter in Harlem.

 After the emotional roller coaster I was on, I could really use the Rose Petal Ritual ($48).

Love Your Hands and Feet with the Lemon Ginger Mint Manicure and Rosemary and Sage Foot Soak and custom-blended Peppermint Polishing Scrub ($42).

 Take me there…

Photo credit: Teen Vogue

Shoe-gasm

 

My friend and I were chatting the other day. We had quite a bit of catching up to do and in between breaths she says, “I bought a pair of red bottoms.” 

I’m jealous.

I want some!

Aarrrrgh!

I can’t recall ever spending over $220 on a pair of shoes before. And while I’m still not quite prepared to spend a month’s rent on an shoe-gasm, I am about a click away from spending half a month’s on these:

*side note* I am getting (hoping for) a dslr camera for Christmas, so if everyone could bare with me until then, I promise it will be worth the wait. Until then, I will keep you as entertained as possible with barrowed visuals.

Ladies and Gentleman, Introducing, MS. PHILLY

As promised, the Iowa City Soul Series’ second event was fan-tas-tic!

 

Sound check:

 

 Mr. Bob Chin was in the building. We clowned around a bit.

While  HG Soul warmed up the mic.

  The band, Verzatile, Is AMAZING!

At the show:

 And Ms. Philly blew us away, like she always does…

 Bob Chin performed.

And so did Ra’yah Sahib.

They put on a great show. If you weren’t there, YOU MISSED IT!

Photo credits: sound check: honeybeflyy/at the show: Al B.

 

The 20% Rule

I shop online almost exclusively. My email box is stuffed with messages about this sale, and that one. Bloomingdales has 25-40% off cold weather essentials (ends today, so hurry) and Alexander McQueen is at Gilt this week…

But, even if there were physical retail stores here in town, the same rule would apply: NEVER PAY FULL PRICE! 

Because:

1) we’re in a recession; and

2) I don’t like the idea of paying for shipping (I think it should be free), so if I get it on sale, I feel like at least I’m not paying for shipping;

3) If I wait long enough, I always get a coupon for the store (I just have to fight the urge to have it NOW);

4) Don’t worry, they won’t run out while you are waiting for the coupon  (See #1); finally

5) 20% off is usually cheaper than free shipping.

And that folks, is how I got this:

 

 

It’s perfect! I LOVE IT! 

Besides waiting for those magic words to appear in my inbox (it took a week and a half. The bag was supposed to be for my birthday.), I have gone through more than anyone would believe to find the perfect bag. Before now, I have mostly carried my ma’s gently used hand-me-downs. So, the decision on how to spend a small fortune was never mine. BUT, since it was my decision this time around it had to be THE right bag. Besides that, I am the type that once my stuff is in the bag, I carry it until the handles fall off. Which means that it has to go with EVERYTHING. Coincidentally (or not), all of my ma’s bags have.

What makes this bag perfect is that it’s very narrow, so things don’t have room to get lost; I can’t carry much other than the essentials (wallet, camera, planner, gum, lip gloss, eyeglass case, comb and iphone). Besides being extremely functional, IT’S GORGEOUS! Look at it again. The leather is so soft and the color goes with EVERYTHING! Picture it with burgundy, purple, turquoise, teal, mint, mustard, salmon, royal blue, and of course, brown, black and grey.

You’re jealous.

Remember the rule!

For You, Cupcake!

 

This year, I decided not to  make a big deal over turning another year older. But, I love cupcakes, and I love to share them. So, below are a dozen virtual cupcakes, in the form of 12 fabulous gift ideas under $27 in honor of my 27th b-day! Enjoy! 

1.  Chanel Nail Polish in Jade

2. A couture lollipop  from the Sugar Factory

3. Copy of The September Issue on DVD coming out later this month

4. A pair of J.Crew tights or 3 pack of anklets

5. Roll-on/pocket perfume ( from Sephora)

6. Zoya nail polish in Deliliah, Layla, Sofia, and Angelina 

7. An Orchard Pear Yankee^® candle

8. 3 adult movie passes (@ $9 each)

9. 2 Lolita^® glasses

10. Suck Uk Mix Tape USB stick (here at Greener Grass Design)

11. Flexible mini tripod (Target)

12. A cool 2010 calendar

NyC Fashion Week: Fashion’s Night Out Recap

Arriving in NyC 

Fast forward to night 2 (first night us girls just caught up on some gossip), Fashion’s Night Out!!!

 We had our guide:

Started out on  Seventh Ave. in Chelsea

 

 A little wine and cheese before heading out

 Went over to the Meatpacking District-Party @ Tory Burch. Apparently Russel Simmons was there at one point.

 Then went around the corner…

 

 Ingrid shopping for glasses @ Kenneth Cole

 Window shopping…

 Crazy people and mad paparazzi @ Stella McCartney. Kate Hudson was on her way…

 We didn’t want to stand in line, so we headed over to DVF

 

 

Where  Diane and Anna chatted it up

 And Diane posed for a pic with us

We were hungry from all of the shopping and partying so we went back to Chelsea to the Cafeteria. AMAZING food! There’s always a line, even at like 4 am.

 I had the chicken and waffles

Fashionable Spaces

Photo by Eric Boman pictured in Elle Decor

I heart beautiful spaces.  This closet (it’s Anna Sui’s) looks like a great place to just hang out.  I wish I had one room to house all of my clothes, shoes, and accessories. I tend to forget that I have stuff, because it’s all kept here, and there. I think I could probably mix and match my articles better too if they were all in one place. All that it looks this closet is missing is a chair to sit back and take it all in. I think I would probably have a radio and possibly a tv in my closet. When I was looking for apartments, I viewed this one with three small rooms. I was going to use one for sleeping, one for working, and one as a closet. Speaking of work spaces, Meggy @ Fashion For Writers has a fabulous one.

I can’t wait to get a new camera so I can start taking better pics…Happy and safe weekend!