OffpriceNetwork.com Article Center

The Bargain Suit

By Art Micklewraith
Every decade since the sixties has seen a decline in the number of men who wear suits. Once the absolute stable of nearly every mans wardrobe, the suit sat unchallenged in men's wear. Unchallenged until the era of rock-n-roll. During the so-called 'cultural revolution' men began to free themselves from the necktie and button down jacket as the ultimate symbol of authority. Dress codes at the workplace have come to accommodate the new attitude. Over time the number of days an office worker was expected to dress up declined and the casual Friday was born.

Most men, whose work doesn't require suits, own one that serves for weddings, graduations, and funerals. That's quite a change from granddad's time when even a bricklayer owned a suit if he could and attending church without one was nearly unthinkable.

The suit however has never gone away and remains a necessity for millions of men. The suit is even gaining beck some ground. Perhaps it's a sign of the economic times but many companies are tightening up their dress codes and helping to create new demand for the business suit. Some office workers feeling less secure than a few years ago are hoping a more professional image will help them survive and prosper in more competitive workplace.

Men's Warehouse, a men's wear retail giant, reports a 13% increase in sales from the year before which were higher than the year before that. While that isn't phenomenal growth it does show fundamental improvement in a tottering industry. Other men's clothing retailers like Brook Brothers report similar improvements in sells.

Selling inexpensive suits to men not entirely comfortable with the suit buying process has fueled men's Warehouse's success. Their website features a how to manual on the basics of wearing a suit such as selecting materials and fit and even how to make a Windsor knot. The obvious attempt to educate their consumer illustrates their belief that an untapped and growing market is out there. It is not a market interested in spending a thousand dollars on a suit. The most expensive suit on Men's Warehouse's website is $500 and most are less than $300.

Searching for suits on eBay shows a comparative dearth of sellers when compared to other types of apparel. Online auction sites all have some men's suits available with prices somewhat lower than at regular retail websites. For example, an Oscar de la Renta three-button suit was going for $200 and an Evan Picone for $180. If a buyer is unconcerned about brand names they can easily purchase a suit for about $100.

Searching the web for suits available in wholesale lots turned up some interesting things. First of all it is very difficult to get a hold of closeouts in cases where you are sure to know what's in them. Nearly every case promises to be a mix of suits and jackets making it difficult to figure what a retailer's margin will be. The cases often mix brand names so if you where hoping for Hugo Boss you might be getting Calvin Klein.

The anxiety caused by mixed cases is somewhat mitigated by the unit costs. Most bulk mixed cases sell for around $20 per piece if purchased in sufficient numbers. However, in some cases sufficient means 500 units and that is a deal breaker for most small online retailers. If a seller has access to one of the new 'business to business' services available at some auction sites that allow multiple sellers to get together to meet order minimums this would be a good circumstance to make use of it. Sellers uniting like this will also help to lower shipping costs.

To get a rough idea about the money to be made with one of these mixed lots let's assume a case was purchased by a group of four resellers. A lot of 500 would yield each person 125 pieces. If the distribution between suits and jackets were about even each resellers would get 62 suits that could sell for about $150 and 63 jackets that sell for around $30. So for a total investment of $3,125 each person gets merchandise presumably worth about $11,000. Now don't forget these cases nearly always contain some returns and shopworn articles that may not be sellable.

Of course smaller lots are available with proportionally higher per unit costs. The smallest lots I could find were 100 pieces at a cost of $40 per piece but the lot promised Ralph Lauren only.

While the its fashion prominence has declined and the relatively high price of suits might cause a retailer to raise an eyebrow the high margin, the improving demand, and the open market make the suit an excellent opportunity for the small online store.

Art Mickelwraith is the author of the Wholesale Buyer's Guide at TopTenWholesale.com. He can be reached at artmicklewraith@gmail.com.