# Question on financial aspect



## Mnuesca (Jun 14, 2012)

Hey guys and I've printed out my first designs and I have kind of blindly planned out projections/ goals for my clothing line for the next couple of months. I need help figuring out some of the financial aspects, but particularly expected sales. If anyone could help me out in predicting sales per month other than logical guessing, I would greatly appreciate it. Thanks a lot


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## bornover (Apr 10, 2008)

The way to project sales with a brand new product is an estimate based on what your demographic's buying patterns are on similar products marketed to them in the same way as you will be marking your products. Having an unknown website does not count at all in any of this.

If none of this makes any sense to you then you have no real idea what you will sell. Now don't get me wrong or think I am trying to discourage you. Your products might do very well if you get them in front of the right people some how. And again, I stress, an unknown website does not count. People do not automatically find your site and buy your stuff from it. You NEED, NEED, NEED to get your product in front of the kind of people who will like your product. If you do have a web site you need a marking plan to drive people to your website. If your stuff will be in stores, your marking plan needs to drive them to the stores. The point is, figure out what kind of people already like similar products as yours (your demographic), and find a way to market (advertise, do promotions, things like that) your stuff to them in a way that will lead them to the places where they can buy your products.


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## Mnuesca (Jun 14, 2012)

So bornover, 
What I'm thinking from what you said is that I would have to look at my target market and see their buying behaviours on similar products like mine. So would it be possible to somewhat base it off the annual sales of similar companies (a.k.a competitors)?Also what other ways would you get your demographics patterns? Would you just ask them how often you buy clothes or is there a smarter way?

and yes I understand that you can't just expect to sell your product. I've heard of many companies that had great products that failed due to the fact they had a terrible marketing plan or none at all. I've been looking into SEO and Social Media marketing and have come up with different strategies. Thanks for the tips though.


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## bornover (Apr 10, 2008)

Mnuesca said:


> So bornover,
> What I'm thinking from what you said is that I would have to look at my target market and see their buying behaviours on similar products like mine. So would it be possible to somewhat base it off the annual sales of similar companies (a.k.a competitors)?


No, you can't base your projections off the annual sales of a competitor. Some of the reasons are:

Your competitor may be established and have wide recognition in the market.

Your competitor may be a widely recognized "Brand Name".

Your competitor might have a marking budget significantly larger than yours and be able to reach a significantly larger number of the target demographic. 

So, some things you can do are; if you know your whole market's annual sales, you can then figure out, if say, you can capture 5% of the market your first year, what 5% of the market is. Now 5% is a huge part of a market to capture for a brand new company. Very, very few can get that much of an established market the first year. I just used 5% as an example. You have to try and come close to some realistic figure, and then budget low from that if you want your best chance to survive.



Mnuesca said:


> Also what other ways would you get your demographics patterns?


Unless you have the funds to pay for market research, the best way to know buying habits and disposable income of your demographic is because you or some people you know are part of the demographic.



Mnuesca said:


> Would you just ask them how often you buy clothes or is there a smarter way?


I don't have any better than my answer above in a quick response on the forum.

Hope this helps somewhat.


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## kimura-mma (Jul 26, 2008)

What distribution channels do you have lined up?

If you are trying to figure out your consumer's buying habits, you need to factor in how and where they typically buy similar products.

Are you selling on a website? Through existing retail stores? Your own retail store?


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## Yuacorner (Jun 21, 2010)

bornover said:


> No, you can't base your projections off the annual sales of a competitor. Some of the reasons are:
> 
> Your competitor may be established and have wide recognition in the market.
> 
> ...


Hi Bornover. Great advices here. I'm new to this and am also trying to figure this out. Can you elaborate more on the knowing your demographic's buying habits and income? Are you saying to base it on your personal buying habits an income and also your friends and families?


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## bornover (Apr 10, 2008)

Yuacorner said:


> Hi Bornover. Great advices here. I'm new to this and am also trying to figure this out. Can you elaborate more on the knowing your demographic's buying habits and income? Are you saying to base it on your personal buying habits an income and also your friends and families?


I am saying that yourself, friends and family are only valid sources of marketing data if you or they are truly part of the demographic. For example, if you are wanting to sell shirts to MMA enthusiasts, it is not likely Grandma is part of that demographic (but your Grandma could be a tatted up PX90 hardcore Gladiator for all I know! ).

My point is that there might be people around you that are really part of the demographic you are trying to reach and therefore valid sources of marketing data. If there are no people of your target demographic available to you (for free), then you have to spend money with a firm to do some market research if you want real data, or, take your best guesses at what you think your target demographic is like.


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## Gecko Signs NT (Aug 3, 2012)

I don't know if this helps US members, but here in Australia I used the Bureau of Statistics to get that info. I don't know what the equivalent is in the US or Europe.


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