How to Start a Specialty Suit Store

Part 1 - How to start a Specialty Suit Store business - Background

Specialty or custom suit stores offer customers tailored fits and personalized service. Show off your couturier expertise and develop long-standing working relationships with clients.

Our guide is in 3 parts:

• Part 1 - How to start a Specialty Suit Store business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a Specialty Suit Store?

As mentioned previously, the right location is critical for this kind of business. You need to be relatively close to the customers you wish to attract. You also need enough space for storage and a tailor’s workshop.

Start by pricing the rents on boutique-size shops or storefronts. Rent prices can vary considerably, depending on location, but $17-20 per sq ft will get you in the ballpark for pricing. Build-out costs to furnish the space will double or triple this cost.

Next, you’ll need to consider your stock clothing costs. Contact various clothing and fabric manufacturers to secure sales and distribution deals with them. Stocking your store will be a considerable amount of the initial cost. You can also include equipment costs, such as cash registers, sewing machines, and presses. You’ll need to decide how much you will do in-house or as subcontracted work. If you subcontract tailoring and sewing or cleaning work, you’ll cut materials and equipment costs, but you’ll pay it back in service fees to your business partners.

You’ll need to factor in the costs for registering your business with the proper licensing, permits, and insurance. If you have employees, add in their salaries and insurance costs as well.

Advertising and communication services, such as phone and internet, are also an important cost for getting up and running. You’ll need a website built, along with the hosting fees to keep it updated. Additionally, you’ll want to develop an ad blitz to let customers know you are available and show the services you offer. Additionally, you need signage in and around your store, such as window displays, billboards, and a store sign.

Cleaning and janitorial services may be required, depending on the size of your business. You should also have a fund for legal services, as a personal lawyer or legal council is suggested for new entrepreneurs.

Finally, always leave something in the budget for extras and incidentals. It’s always better to have a cushion to fall back on, if possible.

What are the ongoing expenses for a Specialty Suit Store?

Most ongoing expenses will pertain to rent and utilities, insurance, and tailoring/sewing supplies, as well as re-stocks of ready-to-wear clothing and accessories. Once you’ve established your business, overhead costs are minimal for the most part.

Who is the target market?

Business professionals and fashion-conscious shoppers will constitute a bulk of your market. Age ranges can vary from the mid 30s to the late 60s/early 70s.

How does a Specialty Suit Store make money?

Specialty suit stores generate revenue through the sales of suits, dress shirts, and other formal accoutrements. Specialty stores also make money through the tailored alterations done on each client.

How much can you charge customers?

Specialty suits can be pricey. But, since a good suit is designed to see years of wear, customers understand that quality costs money. Tailored suits start around $400 and can quickly reach four figures. Some customers may purchase already constructed suits, which you then tailor to their measurements. This process won’t be as labor intensive and will cost less. Either way, most boutique stores begin with a 50% markup on goods and services.

Measuring, patterning, and tailoring a complete custom suit requires time and precision. This process will cost considerably more and may incorporate some unique requests from the customer. A truly custom suit can cost $5,000 or more.

You may not strive to be the most expensive, but you definitely shouldn’t undercut yourself on profit, either. Your time and efforts should show your attention to detail and commitment to customer service. Equally, your time and efforts should be compensated.

How much profit can a Specialty Suit Store make?

Specialty suit stores, like most boutique businesses, will see some ebb and flow of revenue, often seasonally. Custom suits can command a significant price, and most customers in this market will understand that they must pay more for a custom piece.

How can you make your business more profitable?

If you or a business partner are a gifted tailor or seamstress, consider offering alterations and custom sewing work on items other than suits.

Day-to-Day and Growth

What happens during a typical day at a Specialty Suit Store?

A specialty suit store, as the name implies, fits customers in specialty suits. Everything from tuxedos to semi-casual sport coats and blazers are being fitted to each customer’s unique dimensions.

What are some skills and experiences that will help you build a successful Specialty Suit Store?

Owning and running a specialty suit store takes an equal amount of business and fashion sense. Prior retail or business management experience is recommended. Customer service experience is also an important foothold for starting your climb. Understanding how to dress different body types as well as different personalities is also critical to success. Your knack for tailoring and spotting fashion trends will also be on display and should be one of your defining characteristics.

What is the growth potential for a Specialty Suit Store?

Specialty suit businesses can find success in the right sales markets. Well-tailored professional fits are always popular. Research the area in which you’re considering starting your business to assess competition and customer interest. Find a location with less competition and a demand for tailored suits. Then, cultivate your loyal customer base for sustainable growth.

What are some insider tips for jump starting a Specialty Suit Store?

A specialty business has to work harder to target and promote to its customer base. And, you won’t want to blindly choose a location to open a specialty suit shop. Realize that you should be able to readily identify a thriving target market for this kind of shop. A suit represents professionalism. It is a mark of special occasions. Furthermore, suits aren’t high turnover items. 

People that enjoy wearing suits love to talk to store owners who share their passion. Your actions and interactions in your first few years are make or break. Be prepared to show up and show off. You need to express interest in individual clients and show that you’re not a one-size fits all store.

You should also advertise heavily in various formats. Use all of your tools to get some attention. Blogs, Instagram stories, videos, retweets, shares, and comment threads are the 30-second spot for today’s world. At the same time, print ads and physical signage are still incredibly important for recognition and customer contact. Consider putting your store in local publications which feature other specialty or high-end items and services.

How and when to build a team

When you launch your store, you may only need a few people to successfully run the business. Setting up before opening is often the most labor-intensive aspect of your startup. Once you’re set up, two or three people should be able to operate a small to mid-sized shop. You could even consider going solo, if you have enough experience.

Within a year, you should feel as if you’re settling into some customer and store patterns. When your business is consistent enough to pull you in multiple directions, you need some extra help. Personable, trainable, and capable employees all earn high marks for smaller shops with a demanding clientele. They also help you to focus on overall company growth.

Part 2 - Is a Specialty Suit Store business the right fit for you?

Part 3 - Action plan to launch your Specialty Suit Store business in 90 days