Bermo Enterprises celebrates 35 years this November

A Special Interview with Ed Bernard, President of Bermo & Co-Founder of the Off Price Show

 

How did you get started in the apparel merchandising business?

 

I actually worked part time in a tailor shop in downtown Chicago when I was just 16 and realized then that I enjoyed working with clothing. My grandfather was a tailor so I guess it kind of ran in the family. My summer job during high school was in the off price garment district on the near south side of Chicago. When my college career ended early, I went back to working full time for the same jobber and got my “education” from a real tough guy in the business. He taught me quite a bit of what to do and what not to do. Realizing that I didn’t want to work for someone else the rest of my life, I decided at the ripe old age of 22 to open a retail off price clothing store on the campus of Western Michigan University in Kalamazoo Michigan. Having no ties there at all, I moved there and opened up a 1000 sq foot store called Mr B’s Warehouse on November 9^th, 1973.

 

What sets Bermo apart from other Off Price specialists?

 

I think our understanding of the retail business has given us an edge. We currently operate 40 stores under 3 different models. We are able to jump on trends quickly from shopping regular lines for some of our retail store needs. Also, understanding the timing of product flow, holiday needs, and proper packing to make the items in the box received look rack friendly once hung on a hanger.

We also are very careful to only sell product that we have total control over. Product must be in our warehouse, and once it is sold, even our own retail stores can not pull the inventory for their needs. This is especially critical during our August show as this is a very busy time in our retail division as well. We bring two order entry people to monitor our orders and enter them live at the show to reserve all products for our customers. While it isn’t a perfect science, it does work well to cut down on making the mistake of selling the same product to two different companies. In other words, if you buy product from Bermo, plan on getting it.

 

Bermo is one of the few if not only Off Price Specialist that has professional marketing support from an agency/consultant.  Explain how this investment has benefited your company.  Also, what marketing tips do you have for retailers with limited resources?

 

I have owned Harber Advertising since 1975. Majoring in radio and television marketing at the University of Oklahoma, I always had an interest in promotional activity and how to get the word out. It was a natural to blend the agency in with Bermo. We have, in the past, done some outside consulting and creative work, however we are mainly an in-house agency that does all the technical, production, copy writing and placement for our wholesale and retail company’s.

As far as marketing tips go, my advice is that even with a small budget, never stop advertising. The equation is not based on how much you spend, but how well you place the advertising dollars you do have.

 

 

As co-founder of the Off Price Show, what developments have you witnessed over the years that have made you proud to be an integral part of this marketplace?

 

When Bill Jage and I started the show, we did it because both of our off price wholesale businesses were emerging, jobbers were being more accepted in the market place, and we needed a new home. The 5 jobbers that were showing at the Hilton during the Magic show were forced out of their space and we had to find a place to showcase our product. Bill and I figured that other jobbers would go in with us and it could be a larger attraction if we found the right space and it was close enough to the Magic show. The Debbie Reynolds Hotel was that place. Being only a block away from the Las Vegas Convention Center, we set up a company, funded the show, did the marketing, coordinated the removal of the bedroom furniture and placement of the racking, dealt with logistics of everyone’s needs, etc, etc.

After selling my portion of the show to Bill because of  my expanding business and family responsibilities, he got out of the jobbing business and concentrated exclusively on making the show a truly quality event. Bill took the Off Price Show to another level and made us the “place to be”!

 

 

What advice or strategies do you have for retailers who are facing a tightening credit crunch?

 

First of all, buy from companies that can service you quickly. If you can use the vendor to help be your warehouse, your on-hand inventory needs will be smaller. A faster turn with a smaller inventory is what it is all about.

Also, step up your communication with your factors and vendors so they know that you are going to be attentive to your commitments, especially if there are any problems. When we get retailers that don’t return our phone calls or e-mails regarding money that they are delinquent, it really doesn’t give us that warm and fuzzy feeling. When we get someone who is pro active about his or her responsibilities, it gives us a much better cause to work with them to maximize their availability of credit. Since we carry our own paper, we see both sides of the story. In my mind, when there is clear communication, it works for everyone.

 

 

Your family has played a big part in the Bermo story.  Tell us more.

 

Probably not a lot of people know that I met my wife at the Magic show about the same time we were starting the Off Price Show 13 years ago. At that time, she worked for a company called Paragraph and was living in LA. Unknowingly, she sold me a bunch of product that was made in a slave labor camp right in El Monte, California. The newspapers and the US Department of Labor picked up on it and it had our name (Bermo) splattered over every major newspaper in the country. Even my mother called me to ask me why I was making product in slave labor camps.

After getting through the many newspaper interviews and explaining to the Dept of Labor that we didn’t actually produce garments, but only bought finished product, Diana offered to buy me dinner at the next show to “make it up to me” for all my troubles. Well we ended up seeing each other every night during the show and got married about 6 months later.

My son Blake is 26 years old and has been working in the company the last year and a half. He is currently working in our retail division, although he attends all the Off Price Shows to keep his finger on the pulse.

I also have 2 daughters, Mara who is 22 and lives in Seattle, and Emalee who is 18 and is a freshman at Western Michigan University.

 

 

Finally, the magazine is being re-branded to “This is Off Price” as part of our 2009 campaign to educate buyers – both old and new – on the merits of shopping at the Off Price Show and from its vendors year-round.  What are some unique benefits of Off Price that you feel our seasoned buyers overlook or don’t take advantage of and, what is your take on the Off Price 101 tips you have for our new buyers?

 

Well the obvious advantage of having almost every off price jobber in the industry under one roof is a huge plus. Just getting around and talking to each vendor, finding out where their specialty lies in the market, and how they could fit the needs of the retailer is much like an open book. I don’t know a jobber out there who isn’t happy to educate our attendees to help enhance their business. If I were a retailer shopping the Off Price Show, I would make sure that I shopped all the booths from the front to the back.

 

Regarding tips of the trade for the new buyers, my suggestion is that I would always ask your vendor if the inventory that they are showcasing is in their warehouse. Also, do they have total control of their product? If you buy all of the inventory, is the vendor still showing the sample in their booth? Not a good sign.