We simply have to move more ties - something that is not an easy task in a market that has not been growing for the past five years.
San Francisco, CA (PRWEB) May 06, 2013
San Francisco based online tie retailer Cheap-Neckties.com just announced plans to further cut prices on more than 200 of its best selling neckties and bow ties. The retailer that is best known for a selection of ties sorted into four pricing groups of $5, $10, $15, and $20, is planning to focus more on the wholesale and reseller business of men's neckties. "Currently we feature about 5 dozen of ties in our $5 section, but soon we will expand to offer more than 200 of our best selling ties for just $5 each", says founder Hendrik Pohl. Despite rising product costs of overseas production, the retailer is expecting to recoup some of the lost margin by an increase in sales volume.
In addition to growing the offering of their $5 ties (which previously sold for twice the price), the retailer will also offer additional bulk pricing discounts for orders of 50+ ties. "It is important that we are aggressive with our pricing strategy," says Pohl. "We entered into a new agreement with our suppliers which committed us to a certain volume with them. In return they offered us attractive prices, and agreed to not raise prices for a certain time frame - something which has become pretty common recently with Chinese suppliers."
To meet the expected growing demand caused by lower prices, Cheap-Neckties will also be moving into a new warehouse space in San Francisco SOMA district. "The new space will allow us to store more than 3 times the current inventory. We are now very committed to our plans and there is not turning back. We simply have to move more ties - something that is not an easy task in a market that has not been growing for the past five years." Despite the fact that the necktie industry is mature and not growing rapidly, Cheap-Neckties is confident that they will succeed with their plans.