We anticipate that the price reductions will ultimately increase sales by more than 30%. While we don't expect profits to go up as part of this move, it allows us to put more pressure on our suppliers by ordering larger quantities of silk goods at a time,
(PRWEB) January 24, 2012
Online men’s accessories retailer Ties-Necktie.com announced today that it has drastically lowered its price points in order to contend in an increasingly competitive e-commerce industry. The site has slashed prices on its designer silk men's ties, bow ties and other men’s accessories by an average of 20%.
While production costs for silk garments have shot up more than 15% in the past twelve months, Ties-Necktie.com will lower its price points to better serve its customers. In addition to ties, the site carries a wide selection of quality silk ascots, scarves and pocket squares.
“We anticipate that the price reductions will ultimately increase sales by more than 30%. While we don't expect profits to go up as part of this move, it allows us to put more pressure on our suppliers by ordering larger quantities of silk goods at a time,” said Ties-Necktie.com founder Hendrik Pohl. “We have almost doubled our warehouse space in the past three months to be able to dramatically increase our inventory.”
Ties-Necktie.com reduced its prices in the beginning of the first quarter of 2012 and sales are already up.
“This concept is actually diametrically opposed to everything I learned while studying business. It’s counter-intuitive to increase inventory while the consumer demand has not increased,” added Pohl, a German immigrant who studied business, marketing and economic at Santa Clara University. “I remember professors pushing the idea of ‘just in time’ inventory. While this makes sense for costly products that quickly loose value, it is not true in the affordable men’s accessories business. We will still need to and will offer quality on-trend ties from our designers’ latest collections, but considering production times, shipping, and custom clearance, ‘just in time’ inventory’ just isn't feasible.”
Ties-Necktie.com is an industry leader in the online men’s accessories retail market. Since the site’s founding in 2005, Pohl has implemented an aggressive marketing plan which include public relations and search engine optimization practices to make Ties-Necktie.com once of the most popular Internet destinations for affordable designer ties and bow ties in the United States. Pohl also owns and operates sister men’s accessories retail sites throughout Europe, With headquarters in Hannover, Germany and San Francisco, Pohl serves markets including Germany, France, Portugal, Italy, the Netherlands and Russia and recently launch a Spanish-language site, corbatas.es, to serve Spain.
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