Budget boutique | A conversation with Pam Olson, owner of The Lady's Room Consignment Boutique in Damariscotta
Photo/Courtesy Pam Olson
Pam Olson
Founded: April 1, 2008, in Boothbay Harbor; April 1, 2009, moved to Damariscotta
Number of employees: 1 full time, 1 part time Startup costs: $25,000
Projected revenue, year one: $80,000
Projected revenue, year two: $100,000
Contact: 563-8555
38 Elm Street Plaza, Damariscotta
Why did you decide to open The Lady’s Room Consignment Boutique?
I’ve always loved women’s clothing and women’s fashion and I was making a habit of going into my girlfriends’ closets and pulling them apart and coordinating outfits for them, so I guess the idea came out of that. I decided that it would probably be a good climate for a consignment boutique. Last year, when I started was when things were starting to get a little difficult economically for people and I thought it would be a good way for women to recycle their clothing and to be able to afford nicer clothing at a fraction of what they would have to pay in a department store. The clothing I take tends to be higher end and more name brands. I’m really particular about what I take in the store; it’s not a thrift store atmosphere, it’s more of a boutique atmosphere.
What do you offer your customers?
I offer them a nice variety of gently worn, high-end clothing in all size ranges. I have women’s shoes and handbags, jewelry and other accessories and I offer them fashion coordination.
Why did you pick this location for your business?
I moved from Boothbay to Damariscotta because [Damariscotta] was a more year-round community. Where I am now, there’s a lot of walking traffic, it’s off of the main shopping area in Damariscotta.
How do you market your business?
I market through the local newspapers. Since I’ve been in Damariscotta, the businesses in the downtown area have put in a joint advertisement in Down East magazine. I’m in a couple of guidebooks for the Damariscotta area. I’m hoping to move to radio advertising very shortly with a midcoast station that encompasses the Damariscotta, Rockland, Camden area. Word of mouth and happy customers are my best marketing.
How did you finance the start of your business?
Through personal savings. When I opened the store I put all the money in myself, but I had a lot of friends devote their time free of charge to build out the store. A friend who just started her own design company did the interior design for free.
What’s been the greatest challenge running this business?
I think the best thing I did when I started the business was to learn my weaknesses very quickly, and that lies in the accounting aspects of the business — that’s my biggest challenge. So because of that, I have a great bookkeeper and a great accountant. That takes stress off me and helps the business run more smoothly.
How has the economy affected your business and business strategy?
I really have to pay attention to the quality of clothing that I take in. I have to keep close tabs on [it] so I can get the prices that I ask, and I have to have those prices in order to pay rent. I’m also noticing more women are becoming consigners that may never have been consigners before. Since I’ve been open here, I’ve gotten over 100 new consigners — that’s a lot for six weeks. When I was in Boothbay I got about 330 in just under a year.
Can you explain the consignment process?
Consigners bring clothing in and I look it over and reject things that aren’t up to standards. Normally, I set the sale price and I try to keep that price about one-half to one-third of the original retail price. After the item is sold, the consigner receives 40% of the cost of the item and I receive 60%. That model is kind of a standard in the consignment industry.
What are your plans for your business?
I would like to eventually open another store in another area of Maine so there would be a couple of Lady’s Rooms around. I would love to continue the way it is and have the business grow with my customer base and try different marketing techniques to get my name out there and just keep it going — keep the great clothes coming in and keep the customers coming in to have a win-win situation for the consigners, the customers and myself.
Interview by Mercedes Grandin
New Ventures profiles young businesses, 6-18 months old. Send your suggestions and contact information to editorial@mainebiz.biz.
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