How Much Money Do Boutique Owners Make?

While it may seem as though boutique owners make a lot of money from their business, the majority of the money coming in proceeds to go right back into the business. Owners get paid very little compared to what teh business brings in after the bills are paid, money has been sent wherever it needs to go, and the only money left is profit. If a boutique is not making money at the moment, then the owner most likely is not being paid for their work.

So how much money do boutique owners make? 

Boutique owners make $52,000 yearly as a base pay according to Glassdoor.  However, some can make $100,000 or more a year. When considering how much an owner makes the range can vary drastically depending upon the boutique’s popularity, price range, and selection to name a few items to consider. 

When a store is just starting, the owner can make less than $52,000 a year. This is just a base pay that other owners have claimed to make and a general average of the reported salaries. It can and likely will fluctuate depending upon a business’ age, reputation, sales, and more. No two businesses are the same which is important to remember here. 

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How Does A Boutique Make Money?

How Much Money Do Boutique Owners Make?

Boutiques are commonly known to sell primarily clothing and at times accessories. This has been the standard foundation behind them and how they have made money for years now. However, boutiques have also been expanding their offerings to include smaller businesses and other items as well.

Now we know what you must be thinking, why would a boutique expand its offerings? Well, who doesn’t want to support a small business whenever they can? Especially since most boutiques tend to be small and locally run, it allows them to further connect with their community while offering more products to their customers.

More products that they do not need to make, can order wholesale, and still, make a profit on. So what products do boutiques like to offer from other small businesses? Most of the time they sell candles, bath scrubs, macrame goods, and more. 

Having more than one type of product offered at your boutique allows you to draw in more people and it makes them just a bit more likely to purchase something from you. It never hurts to have something for everyone when owning a business.

For example, if someone walks in looking to purchase a sweater for their mom they may also find a necklace or candle for their significant other or friend. People tend to shop for multiple people or events at once, so if they see something they know they or someone else may like chances are they will purchase it. 

Plus the exposure and word-of-mouth marketing that your boutique can gain from collaborating with other local sellers is huge. Especially since it would be free as word of mouth marketing is just other people discussing your business. This could draw more customers in alone and contribute to the success of your store. 

What Financial Factors Should Boutiques Consider?

Before a boutique can even think of paying its owner it needs to have its financials figured out and sorted. This can be a lot as there are numerous factors to consider but we’ll break down some of the big ones for you.

The first thing they need to do is get organized and find software that works for their company. This will allow them to keep track of and pay invoices, track business expenses, inventory levels, and more. It allows the back end of the business and the financial aspects to run seamlessly which can allow the owner to get paid sooner rather than later.

The next item to consider is tracking your sales. Not just in terms of profit and inventory though, but to see what items are most popular. This will allow you to find common themes among your best sellers to

How Much Money Do Boutique Owners Make?

hopefully find other items similar to them that you can include in your store. If something isn’t selling well then the boutique likely won’t make much of a profit off of it after it has to get put on clearance to sell.

You also need to know how to properly price your products. Most boutiques will not make much of a profit, which is needed for the owner to get paid unless their items are being sold for around three times their original cost. This factors in the time it takes to source the items, have them shipped, quality checks, warehousing fees, and so on. A lot of the financial decisions depend upon how you price your items. 

Another item to remember is that sitting inventory is only hurting your finances. This doesn’t mean that you should not try and include new items or sizes in your store, but rather that you should buy less inventory when trying new products. Talk to your manufacturer and make sure it will be in stock for a while so that you can test out a limited inventory before purchasing more.

The longer inventory sits, the less likely people will want it, and sales to not attract loyal customers to your store. Which is what you want, loyal customers, as they will make up the majority of your store’s sales.

Lastly, remember that if you are unsure of what you are doing you can always schedule a consultation with someone in the industry who has experience running a boutique. Financially, you can meet with accountants to discuss your current situation and expected course. You can find resources online to help figure out any issues that you may run into. There are answers out there to everything.

When Do Boutique Owners Get Paid?

How Much Money Do Boutique Owners Make?

So once your finances are in order and you understand where your boutique stands, when do you get paid? Many owners will look at their finances and figure out a fair number that the business can afford to pay them. Then they can divide that by twelve or twenty-four depending upon how often they want to receive their pay. 

This route would make the owner more of a salaried worker which will imply that they are actively working for the business. Most owners take this route as it’s an easier and more efficient one compared to trying to figure out a livable hourly wage to pay themselves without bankrupting the business. Running a business is not a joke when it comes to putting in the hours needed. 

There are other methods owners can use to pay themselves as well as owner’s draws. This process allows you to distribute funds as needed during the year and as the business grows. These are considered to be transfers rather than income so they are taxed differently as well. 

Again, a good time to consult a financial professional about what payment method may be best for you based on your boutique’s finances, your tax situation, etc. Everyone’s situation can differ greatly, especially depending upon your business’s current stage so it’s important to know what to do in situations, especially when money is involved. 

The base pay for boutique owners according to a reputable job site is $52,000 a year. However, depending upon the business and its financial position some owners can make well over $100,000 a year. Several different variables are considered when an owner is being paid. 

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Related Questions 

Is it easier to pay to use software to track my financials or to use an accountant?

When running a business, having an accountant can never hurt. However, their fees can add up quite quickly which is why using software to track your day-to-day expenses and invoices can be useful. This will compile everything your accountant will need to then file your taxes when the time comes. Hopefully, saving you money in the long run as the accountant will not need to look around for invoices, dates, business expenses, etc since they are already together. 

Can boutique owners pay themselves more than $52,000 a year?

Yes, they certainly can pay themselves more than that yearly. It all depends on what is best for their business at that moment, how frequently they pay themselves, how well the boutique is doing, and so on. Again, the software can show you your current profits, expenses, debts if you have any, and so on. This will give you a great overview of how your business is looking to then decide on the proper pay frequency and amount for yourself.

Should boutiques put time and effort into offering items other than clothes? 

This is up to the owner’s discretion, however as we mentioned it certainly never hurts to offer more items than less. Especially if the extra items are from other local businesses that may not have their website or storefront yet. It shows comradery between businesses and again people are more likely to buy something if there is a larger selection to browse.

To learn more about how to start your own fashion clothing line check out my startup documents here

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.