Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 6)

Richard Birnbaum: When I gave you the example of their cost of goods at 8% of retail, nothing is a secret. If we’re able to buy aged inventory from the stores, depending on the brand, deal and condition, it’s worth paying anywhere between 15 cents to 35 cents on retail price. We’re giving a terrific

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Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 5)

Richard Birnbaum: We also noticed that the brands were beginning to end distributor contracts and were setting up their own distribution companies in the United States. For example, their cost of goods on an item was 8% of retail. Their biggest cost is not the cost of goods. It’s the marketing and advertising. It’s the

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Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 4)

Richard Birnbaum: Even though distributors around the world were back-dooring the goods into the United States through e-commerce, I personally believe that the brands just closed one eye. It gave them deniability. The deniability factor is very important for them because when the dealers would start to complain, the brand would say, “We have no

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Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 3)

Sramana Mitra: This business started with you taking consignment inventory. Is that how you continued or did you switch to buying inventory? Richard Birnbaum: The next step was going to the 47th Street in Manhattan and checking out all the different vendors. I was trying to learn the distribution model of dealers of these great

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Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 2)

Richard Birnbaum: We realized that the garment business was not for long term. We were buying back in the late 80’s. We were buying designer goods in the United States. We were buying Tommy Hilfiger, Calvin Klein, and Ralph Lauren. Back in those days, e-commerce was not what it is today.

Building Businesses in Aftermarket Designer Merchandise: ShopWorn CEO Richard Birnbaum (Part 1)

If you haven’t already, please study our Bootstrapping Course and Investor Introductions page.  Richard has built several business in the “shopworn” designer merchandise segment. Learn more about the business through his journey. Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background? Richard

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