NTY FRANCHISE COMPANY: Franchise Times: Recycling Kings At It Again

Ron Olson and his son Chad were recently featured by Franchise Times in a “Where Are They Now?” article. The article takes a quick look at the past, present, and future of franchise owner Ron Olson, speaking about his role as an “entrepreneur’s entrepreneur”, and the new franchise concepts for NTY. The full article can be seen below. Sourced from: Franchise Times

Where are they now: Recycling kings at it again

BY NANCY WEINGARTNER

A serial entrepreneur is playing it again—but not in used sports equipment this time. Today it’s clothing for women, teens and even men.  The secret is to be upscale and not segregate the plus sizes.

Ron Olson so believes in the power of recycled goods that he’s recycling his career. The Minnesota-based businessman made it big with his original multi-concept company, Grow Biz, which is now Winmark.

NTY Clothing Exchange in-store photo of Chad Olson and Ron Olson on grand-opening day
Ron Olson, right, and his son Chad have teamed up again at NTY Franchise Company with plans to develop three brands in the popular sell-it-again genre.

After selling the company in 2000—which included Play it Again Sports, Once Upon a Child and Plato’s Closet—Olson retired. Five years later he discovered something AARP never tells seniors: “Retirement is very boring.”

“I was looking for other opportunities as every entrepreneur does,” he says. He found it in Columbus, Ohio, where he was having dinner with Dennis and Lynn Blum, who wanted to show him their new concept, Clothes Mentor. The resale store for women had good bones, but needed fleshing out. His specialty.

Olson is an entrepreneur’s entrepreneur. His forte is investing in others’ concepts and helping grow their business. Almost anything can be recycled into a business, he says, except perhaps tools. “No one wanted to sell their (used) tools,” he says about the one concept he couldn’t hammer out—Re-Tool.

The beauty of a concept like Clothes Mentor is the customers never age out. “Women change sizes, they change professions and they don’t wear clothes that long,” he says. Most of the clothes he teaches franchisees to buy are two years old and hardly worn.

“There’s a lot of work that goes into pricing,” he says. “Our secret sauce is the pricing” and which brands to buy.

The beauty of a second time around is you’ve already made the mistakes. His son Chad, who joined him at his original company right out of college, is COO of the new company, NTY Franchise Co. Clothing Mentor has more than 100 stores, with 67 in the pipeline, Olson says.

Coming online are two other concepts: NTY Clothing for teens and 20-somethings and New Uses for household items. “It’s a totally recession-proof business,” Chad Olson says.

NTY Franchise Named to MN Fast 50 for 2014

The Minneapolis/St. Paul Business Journal released their list of the Fast 50, a list of Minnesota’s top entrepreneurs for the year. The list takes an in-depth look at some of the fastest-growing companies in the state, and Ron and Chad Olson were featured as part of this list.

The article looks at the humble beginnings of the company, as well as how Ron and Chad were able to take the Clothes Mentor store and turn it into an empire. The full article can be accessed from the Fast 50 List on the Minneapolis/St. Paul Business Magazine Website.

NTY Franchise Company logo for Fast 50 franchise list, orange circle with flames coming off of left side

NTY Franchise Company founder Ron Olson and son Chad Olson against orange background

 

Resale franchisor gets second wind after Winmark

NTY Clothing Exchange Ron Olson standing in neat, organized store for grand opening
NTY Clothing Exchange in Minnetonka sells used teen clothing in an environment that feels like a new-merchandise store

As Sarah Buzzell perused items at the new NTY Clothing Exchange in Minnetonka, she couldn’t help but notice the pristine quality of the used merchandise, rock-bottom prices — and that lulling fragrance.

“This place smells amazing,” said the Ramsey resident, as the aroma of coconut lime verbena wafted from the store’s ScentAir machine. “The stuff looks new, and the store is nice and clean.”
Ron Olson, president of NTY Franchise Co., says it’s his meticulous attention to detail that has made him a resounding success in the resale business. Sure, updated signage and fixtures are important, but so is preventing secondhand shops from smelling like attics. “NTY is about looking and smelling like a store that sells new merchandise,” Olson said.

The NTY (New to You) Clothing Exchange, which buys and sells used clothing for teens and young adults, builds on five other resale concepts Olson oversees through his franchise company. His latest, NTY Kids, also recently opened in Minnetonka and will start selling clothes in September. Other NTY entities include New Uses, which sells used furniture, Way to Go Sports, Clothes Mentor and Device Pitstop, which specializes in secondhand electronics.

Olson has been a resale pioneer, making a name for himself at Grow Biz, a company that sold franchises for secondhand stores and was later renamed Winmark under new ownership. The company launched well-known resale names such as Play It Again Sports, Once Upon a Child and Plato’s Closet, which sells teen merchandise.
Olson left the company in 2000 and retired, but returned to the resale business in 2006, buying three Clothes Mentor stores and the naming rights in 2007. He has grown the business to more than 100 stores.

Now at 73, he’s still selling franchises that buy and sell used goods. And his timing couldn’t be better. Nationally, the number of used-goods stores has grown 7 percent each year since 2010, making it a $13 billion industry in 2012, reports the National Association of Resale and Thrift Shops. Franchising is also heating up, with the number of U.S. franchises expected to grow 1.7 percent this year, the highest growth rate since before the recession.

Clothes Mentor, in particular, has revolutionized the resale industry. The women’s clothing retailer one-upped the consignment concept by paying cash up front, no waiting, demanding current styles in near perfect condition. “Twenty years ago there were only consignment stores,” Olson said. “We brought in a more commercially accepted brand that looked like stores that sold new retail.”

Clothes Mentor has 110 locations nationally, including eight in the Twin Cities area, with more than 60 to open soon. Winmark, now Olson’s competitor, is copying the success of Clothes Mentor by opening similar stores called Style Encore that cater to the same demographic — women in their late 20s to mid-50s. Locations in Eagan and Maple Grove opened recently.

Olson’s advantage is his history of experience in the resale franchise business, said Gaylen Knack, a franchise attorney at Gray Plant Mooty in Minneapolis. “Others have come in and had average to medium success, but Ron stays on top of trends and can offer plenty of guidance to franchisees who may not have a retail background,” he said.

Olson and NTY have also branched out into areas untested by competitors. New Uses, which has 10 locations, including one in Minnetonka and one in Maple Grove, sells used household goods and furniture. The growth in New Uses stores has been slower than at Clothes Mentor. “It’s more challenging than selling clothes,” Olson said. “We’ve got plenty of customers who want to buy. Our same-store sales were up 18 percent last year, but it’s harder to get people to bring in their furniture to sell.”

Earlier this year, the company opened Device Pitstop in Minnetonka, a store that buys, sells and services used laptops, tablets and cellphones. Olson projects 300 more stores within five years. With seven stores open nationwide, the average store had revenues of $800,000 last year on a 60 percent margin, Olson said.

While the resale market seems to have unlimited potential as consumers seek value, not everything has worked for Olson. Categories such as ReTool had a wrench thrown at them when men didn’t want to sell their used tools. “We could never get enough used product to sell,” Olson said. “It’s the same thing with adult men and their clothes. After their 20s, they wear them out to a point that they’re not re-sellable. But in their teens and 20s, they grow out of them before they can wear them out.”

But those are but two rough spots in a sea of unwanted merchandise consumers want to recycle for cash. “The demand is there. We’ve become the supply,” Olson said.

nty-minnetonka
NTY Clothing Exchange in Minnetonka sells used teen clothing in an environment that feels like a new-merchandise store

New-to-You franchises

  • Clothes Mentor (used clothing and accessories for women): 110 stores, eight in the Twin Cities area.
  • New Uses (used furniture and home goods): 10 stores including Maple Grove and Minnetonka, and one opening soon in Woodbury.
  • Way to Go Sports (used sporting equipment): Two stores in Minnetonka and Golden Valley
  • Device Pitstop (used personal electronics ): Seven stores including Minnetonka, and a dozen more planned for the Twin Cities area. Agreements for stores in Maple Grove, Eden Prairie, Richfield, Woodbury, Maplewood, Burnsville and Duluth have been signed.
  • NTY Clothing Exchange (used clothing and accessories for teens and young adults): One store open in Minnetonka.
  • Children’s Orchard (used clothing, shoes, equipment for kids.

By John Ewoldt (StarTribune)

CLOTHES MENTOR: Clothes Mentor Debuts 3 New Commercials

Clothes Mentor is an excellent place to buy and sell designer womens clothing, providing an excellent deal to both buyers and sellers. We are constantly trying to let women know about our store, so that they too can experience what Clothes Mentor has to offer! We have put together 3 commercials, focusing on 3 different aspects of what makes Clothes Mentor such an amazing store. Take a Look at the videos below and see for yourself!

Always Look Fabulous

Cash In Your Closet

Expand Your Closet and Wardrobe

As you can see, there is a lot that a Clothes Mentor Store has to offer! Stop by any one of our locations nationwide to experience it for yourself!

CLOTHES MENTOR: Clothes Mentor’s 100th Store

Clothes Mentor graphic with text that says 100 stores strongWe are excited to announce that Jensen Beach, FL will be our 100th store opening on March 13th! As you know, Clothes Mentor has had amazing growth in the past 7 years. We are very proud of the progress that our stores and franchise owners have made. We want to thank all of our franchisees for everything they have done to help build this amazing brand. We are looking forward to the continued growth and partnership with our store owners, and with our shoppers as well.

Stop in to any one of our 100 stores in the coming weeks, and you will see our new “100 Stores Strong” logos. We couldn’t have built Clothes Mentor without loyal shoppers such as yourselves, and the small business owners that make these stores happen. We want to continue growing our reach, providing brand name fashions at frugal prices all across the nation. Thanks for all the support, and keep shopping smart!

DEVICE PITSTOP: Protecting your Computer from Viruses

Device Pitstop is the place for computer repair, including slow computers and computer viruses.

We recommend customers looking for virus protection purchase Norton Anti-Virus.  Norton Anti-Virus was recently rated the #1 anti-virus software by PCWorld.  In general, we are not big fans of integrated security suite software.  Our experience is that some of these software packages tend to slowdown computer performance. 

On the Internet, hackers and others that perpetrate viruses tend to go where the people are.  That means with the growth of Facebook and YouTube, more viruses are spreading through these popular sites.  Whatever site generates high traffic in the future will undoubtedly attract future viruses. 

Another option for customers is the Apple computer.  While Apple is not 100% immune from virus attacks, the vast majority of viruses are written for Windows operating systems.  Why?  Again, because the virus perpetrators flock to the big numbers:  Windows is still 90% of the market for operating systems, while Apple only comprises 7%. 

However, keep in mind that if you switch from PC to Apple, you will likely need to buy all new software unless you get a Mac and then boot into a Windows operating system.  But that does not solve the original problem of getting viruses, as you will be back on a Windows operating system.   You also have to get accustomed to working your way around a Mac, which is a different experience from a PC.

DEVICE PITSTOP: Mobile Tech Repair vs. Device Pitstop Computer Repair

Looking for computer repair in Las Vegas? Computer repair in Henderson, Nevada? Computer repair in Minneapolis, MN? Device Pitstop is the place to get your computer fixed quickly at a decent price. 

We are sometimes asked, “Why don’t you offer mobile tech repair service?”   

We currently do not focus on mobile tech repair.  Should we decide to offer it in the future, we would likely have to increase our prices and increase our turnaround times.

The first reason why our techs hang out at the store is cost savings for the customer.  Device Pitstop repair customers do not have to pay the technician to go to their house.  Since we do not have to insure a driver, pay for fuel or automobile costs, we can pass the savings along to you!  Go ahead: compare our costs to the mobile tech repair guys!

The second reason is speed.  Since the Device Pitstop techs are not driving around town looking for customer homes, they can spend all day at our stores repairing busted D.C. jacks, replacing motherboards or replacing LCD screens among other things.  Device Pitstop does NOT ship your computer away to a central servicing center, like many mobile tech companies.  Our techs and their tools and parts are located at each store, so we can get to work on your computer ASAP.  With mobile tech chains, you might have to pay a mobile tech even though he or she did not bring adequate tools or parts to complete the job.  Your computer might need to be shipped away or taken back to the “mother ship”.  Not with Device Pitstop: we have the necessary tools and many times the right parts to get started on the job today!

Last of all, at Device Pitstop we do not charge by the hour but rather by the job performed.  That way you know what to expect when paying for a repair.  For your broken laptop or desktop, back up your important files (make sure you are doing this periodically) and then bring it down to Device Pitstop for an inexpensive and speedy repair!

CLOTHES MENTOR: Just One Franchise Article

Clothes Mentor was recently the subject of an article written by AmericasBestFranchises.com, a website that highlights different franchise opportunities around the country. The article takes a look at profit margins in the retail clothing industry, and compares standard clothing franchises to the Clothes Mentor resale clothing franchise. What they found was a franchise that had changed the profit margin numbers to give a bigger return for the investment.

The article also focuses on Clothes Mentor’s Cash on the Spot program. Unlike normal consignment shops, customers are paid cash in hand for their items when they bring them in, not when they sell. This simplified process provides instant gratification to the customers looking to sell their clothing. This is but one of the many factors that makes Clothes Mentor such a fantastic franchise opportunity.

The full article is sourced below, and the original can be found on the America’s Best Franchise Blog – Just One Franchise: Clothes Mentor.

 

Just One Franchise: Clothes Mentor

In 2011, Forbes took a close look at net profit margins in various retail industries to find out just how well businesses were doing. Despite gains, pretax net profit margins were hovering at just around 5% for clothing retail stores and luxury goods were at just under 6%. If you’re looking into a business, these might seem like completely dismal numbers. One franchise system, Clothes Mentor, is looking to change the profit margins game to make their franchises more profitable.

Most clothing retailers have gross profit margins of 30-40% on individual items of clothing which involve complex processes of appropriate price predictions and markdowns until all the stock is sold. Clothes Mentor, however, wants to help franchisees gain gross profit margins in the 60% range—that’s 20% more than the highest profit margins for ordinary clothing retailers. Clothes Mentor is a resale shop, so they have a completely different situation from your average local clothing store. Clothing stores are earning net profits of around 5%, but Clothes Mentor franchisees can earn 25% net profits through the Clothes Mentor franchise system. The only other industry that comes close to that amount of profitability is oil and gas at 24.1%.

The system is based on like-new and gently used clothing that can be sold at lower than retail price to customers. Clothes Mentor specializes in women’s fashions for all sizes, from 0 on up, and has a wide appeal to women looking to save money on the latest hot fashions. While it might seem farfetched that franchisees can make such high profit margins, Clothes Mentor franchisees have already achieved this goal.

Clothes Mentor is not a consignment shop. Consignment shops typically have much lower margins. While they represent less risk for owners, they also have lower profit and more headaches.

Customers can sell name-brand clothing to Clothes Mentor locations on the spot for cash anytime when the store is open. Selling customers can even then turn around and take that money to buy clothing in franchisee’s stores. Because Clothing Mentor’s stock changes rapidly between visits, there’s always something new and that keeps customers coming back, especially those who want to score a good bargain on lower than retail priced brand clothing.

The unique POS system helps franchisees manage their business to find the best profits and to price clothing correctly to sell immediately, instead of having to go through a series of markdowns. The buyback system also has integrated technology to keep Clothes Mentor’s locations stocked at the right price with the latest fashions in women’s clothing to capture sales in the moment. Instead of having to predict trends months in advance like other clothing retailers, Clothes Mentor can respond to trends immediately.

On top of a business model made for profitability, Clothes Mentor franchisees receive support and training from the corporate team that makes Clothes Mentor a full-service and support franchise. After signing contracts, Clothes Mentor franchisees go through extensive retail training with the goal of running a profitable franchise.

DEVICE PITSTOP: Power Problems?

At Device Pitstop we fix plenty of broken DC Jacks.  For the uninitiated, the DC Jack is where you plug in your power strip (aka your AC Adapter).  In repairing computers at Device Pitstop, one common DC Jack problem we see is caused by a customer purchasing a “universal” adapter to power their computer.  The universal adapter, commonly purchased at big box retailers and online, is supposed to power any make or model of laptop with a various array of tips to conform to the DC Jack of your computer. 

We purchase laptop computers because they are mobile and we want to use them anywhere we go.  However, because most tips on universal adapters are so long, they commonly take the brunt of our movements and pressure causing enormous stress on the DC Jack.

Our recommendation?  Forego the universal adapter and come into Device Pitstop and we will find the AC Adapter that was made specifically for the make and model of your computer.  And if you find your DC Jack is loose and broken, bring in your computer and we will repair it!