Spend threshold for B/K/C

[BreezyE]

@parisistherapy and @acrowcounted I will also admit that I am skeptical of how that practice works in reality. At the end of the day, SAs are there to make as much money as they can for themselves and for their stores. The comment about trying to feel customers out sounds more like something they feel they should say than how they actually operate.

My SA told me that they specifically look for clients that will become "lifestyle clients" and can tell when someone is just trying to get a bag. My SA also said that they will not sell a walk in a bag if they don't see any long term potential.

edited to add, this is just what they told me. I don't have an opinion on it.

 

[hbr]

My SA told me that they specifically look for clients that will become "lifestyle clients" and can tell when someone is just trying to get a bag. My SA also said that they will not sell a walk in a bag if they don't see any long term potential.

edited to add, this is just what they told me. I don't have an opinion on it.

Although my SA hasn’t specifically told me this I have to agree since it’s been my experience with my new SA and store. They can tell I’m a long standing client and I’m not in it to get a bag and run. I got a pretty quick offer of a QB after minimal prespend with a new SA and new store. I’m pretty sure it’s bc my profile is strong and I made it clear I’m interested in establishing a long term relationship with this new SA and store.

 

[880]

a ten year client who spends $4k a year and wants a quota bag every six months.

Ah, there are people like this? Seriously?

I can only speak as to my experience, but my SAs have definite likes and dislikes as to stock. And they steer me accordingly which is good bc I like their taste.

 

[addiCCted]

Ah, there are people like this? Seriously?

Yes! I know one irl. I think it’s bc she used to get bags without any spend.

 

[SDC2003]

I have seen spend go both ways for new clients. Sometimes it is much harder to get the first bag, but in other cases I have seen the second or third bag if the client is willing to keep up with the spend be much harder. It seems with some Sa’s they like to rope the client in with a good easier offer with the first - although easy is relative since I think there’s still a good level of spend and typically 2:1. Where it’s the latter I have seen a good many clients fizzle out. H really does seem to focusing as of late on the longtime clients and those who are likely to be longtime clients - Not those who are just in for a few bags and out.

 

[Building_profile]

Ah, there are people like this? Seriously?

I can only speak as to my experience, but my SAs have definite likes and dislikes as to stock. And they steer me accordingly which is good bc I like their taste.

Well I had always assumed there's a good number of resellers who buy a ton of stuff as pre-spend (selling some at a loss) and then when offered, buy and then immediately resell their QBs (for a big profit), then somehow make a business (or at least an ongoing profit) on all this, either in the form of kept pre-spend items or net cash? In some of the Facebook groups, it's amazing to see how there are bags posted "FRESH BILL WITH BOUTIQUE RECEIPT TODAY!"

 

[elliesaurus]

But I’ve seen someone purchase a chess board and I immediately thought that person must have read those birkin baits articles advising you to buy things that are particularly hard to move lol.

I've chatted with our SA about the chess sets and supposedly they sell very quickly?! It's apparently on my daughter's wish list so there is a market for it...

 

[parisistherapy]

I've chatted with our SA about the chess sets and supposedly they sell very quickly?! It's apparently on my daughter's wish list so there is a market for it...

My SA once told me a RTW piece is very popular. I looked it up and it’s from last season a year ago. IME they’d never say any product doesn’t sell quickly

 

[880]

I've chatted with our SA about the chess sets and supposedly they sell very quickly?! It's apparently on my daughter's wish list so there is a market for it...

@parisistherapy , i agree with @elliesaurus . I wondered who would buy them or if they or the backgammon sets were popular at 30K plus a set? My SA said of the four that were ordered, all sold almost immediately IDK

And, both my FSH SA and Madison SA said they could not sell the backless apron dress, mainly bc it didn’t look good on 95% of anyone who tried it

 

[elliesaurus]

@parisistherapy , i agree with @elliesaurus . I wondered who would buy them or if they or the backgammon sets were popular at 30K plus a set? My SA said of the four that were ordered, all sold almost immediately IDK

And, both my FSH SA and Madison SA said they could not sell the backless apron dress, mainly bc it didn’t look good on 95% of anyone who tried it

In an attempt to stay on topic, it must be people who are killing two birds with one stone - decorating their offices while boosting their prespend

 

[GabrielleS]

I have seen spend go both ways for new clients. Sometimes it is much harder to get the first bag, but in other cases I have seen the second or third bag if the client is willing to keep up with the spend be much harder. It seems with some Sa’s they like to rope the client in with a good easier offer with the first - although easy is relative since I think there’s still a good level of spend and typically 2:1. Where it’s the latter I have seen a good many clients fizzle out. H really does seem to focusing as of late on the longtime clients and those who are likely to be longtime clients - Not those who are just in for a few bags and out.

This is interesting to me as at my store it has been the opposite for a few years now with a strong focus on new clients. Maybe the tides are turning back to valuing longtime clients.

 

[SDC2003]

This is interesting to me as at my store it has been the opposite for a few years now with a strong focus on new clients. Maybe the tides are turning back to valuing longtime clients.

I think they still want new clients but my impression has been that they want new clients who are going to stick around and be long term lifestyle clients. I don’t think the tide is turning with longtime, it has turned imo for whatever reason maybe the luxury slowdown? I’ve heard enough long time consistent clients (and I’m speaking to those who shopped several years or more pre pandemic) over the last year talk about how service has improved whether more availability of stock or willingness to get items or relatively short wait times for wl bags.

I would think there’s a trust factor with new clients and it seems they’re really having to prove themselves whether through first or second and third bags. My impression has been many of the new clients over the last few years just want bags and they’re done. Some just want one or two but typically they want the c18, b25, k25 and Mk and maybe even an so. Once they get them they are out. Sometimes you’ll get a new client who wants blue boxes too but I’ve noticed once they too get their bags they are out.

Sure these clients are ok for the short run since they spend and help boutique revenue but if they’re also sometimes a pain to deal with (make frequent returns, constantly ask for bags or what to buy for bags, and/or stop by frequently and take up significant time just to buy one low com item) my guess is boutiques would prefer to maintain good relationships with the long term consistent lifetime ones.

What does that translate to? Maybe a new client has to wait a year or more for a bag offer with more spend until they have established themselves in the eyes of the boutique. For example client a has only shopped a year and at 2x spend with gog b25 on wl, asks about the bag every other visit and is kind of annoying to deal with. Client b is longtime client with same spend, has organic bag discussions and is really easy to deal with. My guess is when bags come in client b is higher on the list for the boutique and gets the bag and client a will have to wait.

 

[880]

if an SA is familiar with a client via years of working together, they are more likely to let a bag go with lower spend because they know that they'll make it up on the other side. I'd even go as far to say that I think most SAs would prefer someone who is around for 6 months, spends $100k during that time, gets a B25 and is never heard from again vs a ten year client who spends $4k a year and wants a quota bag every six months.

Agree, and I think successful SAs develop a sense to distinguish which type of client you are. I would guess that an SA likes to have a mix of the first and second types and, due to post covid reality, needs to reset expectations on the third type. If an SA feels that their client’s spend in diverse métiers is on an upward trajectory,* that’s all good too. Hermes and Chanel have had their best financial years post covid, so I assume that the luxury slow down refers more to LVMH and Kering group.

ETA: agree with @BreezyE as my SA has also told me that they prefer to grow lifestyle clients; such clients are the subject of staff meetings. Implicit in that definition is a type of client whose spending may be less sensitive to economic downturn. There is of course room in a SA’s roster for many different types of clients, and there are likely many different routes to a bag.

 

[turkish_coffee]

In an attempt to remain on topic, I noticed that 2:1 ratio is popular these days. However, based on one of my fav youtuber, I believe 1.3:1 is the minimum ratio. In my boutique (US, I don't think it is that competitive), I believe the ratio is a number somewhere between 1.3-1.5, not saying that hitting the number can lead to a QB because I was also plenty strategic about the categories I purchase from, and I truly enjoy all products from different categories from the brand.

 

[Letter]

In an attempt to remain on topic, I noticed that 2:1 ratio is popular these days. However, based on one of my fav youtuber, I believe 1.3:1 is the minimum ratio. In my boutique (US, I don't think it is that competitive), I believe the ratio is a number somewhere between 1.3-1.5, not saying that hitting the number can lead to a QB because I was also plenty strategic about the categories I purchase from, and I truly enjoy all products from different categories from the brand.

I would not base any information off of what a YouTuber says or does. First off, they lie. Second, they manipulate what’s true/real. Third, they don’t always tell the truth.