The children's market is a multi-billion dollar business. With new customers born everyday, there is constant replenishment. Moreover, people LOVE their kids and want to see them in adorable things.

Musical Kids Clothes (MKC) has been distributing predominately at craft shows all over the country for over 10 years. The response was so overwhelming and craft shows so limiting that we decided to offer business opportunities to hard working individuals who want to have fun in their own enterprises. The first store is located on the gulf coast of Florida. We offer territory protection so you can be assured you will be the only Musical Kids Clothes store in a reasonable area.

Musical Kids Clothes stores are very interactive and will typically be located in high traffic, tourist locations. The clothing and accessories are sold to you at a price that enables you to mark them up 3 times. Example: a $25.00 romper costs you $8.33. The prices for the toys and other accessories or "buy and sell" are typically "keystoned" or doubled. End result is a cost of goods of 39%. That "profit margin" can make you a tidy profit.

Why is location so important?

There are several reasons MKC wants to focus on tourist/resort areas.
    High traffic
    New customer each week
    Customers are relaxed and enjoy "discovering" something new.
    Customers are usually looking for an "unusual" gift to take home and are not as price sensitive

These types of locations are not without their disadvantages.
    High rent--$1,000 to $10,000 per month
    Low turnover among merchants--difficult to secure a lease
    Seasonal business--some months operate at breakeven

These drawbacks are quickly outweighed by the profit potential. Typically for every dollar in sales, 40 cents goes to buying the product, 30 cents goes to overhead and 30 cents goes to your profit.

What comes with the store?

The store can be a turn key operation which includes:

• Retail outlet in tourist/resort location
• Displays
• Cash wrap
• Cash register/computer
• Signs
• Heat press
• Hat press
• Transfers
• Personalizing letters
• Inventory
• Bags
• Promotional post cards/shopper cards
• Helium balloons (logo imprinted) and tanks
• Sewing machine
• Overhead train set
• Face painting and other class necessities
• Sound system and collection of children's music

How do you acquire one of these stores?

Some stores will be owned by MKC while others will be run by independent operators. A brief description of each option follows.

• Company owned

MKC seeks out the location, negotiates the lease, designs the store layout and look, staffs it, stocks it and manages it. In turn MKC gets to keep 100% of the profits.

Drawbacks: Limited number of stores can be opened.

• Independent operation

You seek out the location, negotiate the lease, staff it, stock it and manage it. MKC designs the store layout and look. The first 3 months are spent training you in your new store. After that you should be comfortable enough to go on your own. This option is for someone with retail experience and working capital.

Drawbacks: Money upfront

• Independent operation… but with a little help

This option is for someone with some retail experience and working capital. It is the same as above except MKC spreads out the cost of inventory and the licensing fee. MKC stocks the store and is paid as it sells.
 

• Partnership operation

MKC opens and pays for the store the same way as with a company owned store. You then are the owner/operator and are allowed to draw a small salary. In addition to the salary a down payment fund of up to 25% of the purchase price is being built up for you over a 2 year period. At the end of the 2 year period you have the option to purchase the store for half of the total of two years sales. Example: if first years sales are $225,000 and second years sales are $275,000---the purchase price would be $250,000.

The money in your down payment fund allows you to either finance the balance through a bank or we can finance it for you.
 

Cost figures listed are approximate guidelines and subject to change. Costs will vary with each location.

Again, you will have many questions so please call. We'll do all we can to help you succeed!  

Contact us . . . .