Willingness to Adapt Unleashes Belt Maker
A flash of panic crosses Sharon Goode’s face.
“What time is it?” she asks, shooting a worried look at a crew of employees quickly filling boxes in her shipping department. “We promised an order would be out by noon.” In the frenetic fashion business, delivering her fashion belts on schedule is critical, according to Goode, president of Prestige Leather Creations in Vernon.
“The major thing in this business is to deliver on time,” said Goode. “A manufacturer is not real sympathetic when he has a $10 garment waiting for a 50-cent belt.”
Last week, production at the factory hit an all-time high of 350,000 belts. “I didn’t know there were that many waists!” said Goode with a laugh.
Goode, who previously worked for a recreational equipment company, said she never thought the tiny leather dog leash and collar business she took over for a friend 15 years ago would eventually reap $16 million a year. This year, she projects that sales will hit $20 million.
After falling into the leather business, she fell into the fashion business when a friend asked if Goode’s employees could cut up bits of leather and suede to be sewn onto sweat shirts.
Seizing the opportunity, Goode quickly moved to transform the dog leash business into a major player in the estimated $6-billion women’s fashion accessory industry. Her willingness to adapt and her quick responses to opportunities in the fashion business have contributed to her success.
Under Goode’s enthusiastic guidance, Prestige has grown to four divisions with showrooms in Los Angeles and New York City. The “Annie H.” budget line, named after a longtime employee, sells in retail stores including K mart, Sears Roebuck and Miller’s Outpost. The higher quality “Singuere” line is featured in department stores.
About half the company’s sales come from the third division, serving the “cut-up” segment of the fashion industry, in which belts are included with garments when they are sold. Fashion manufacturers, including Cherokee and Guess, contract with Goode to produce thousands of belts at a time.
Prestige also produces an upscale line of leather and sterling silver belts designed by Al Beres and sold in boutiques such as Fred Segal.
To keep up with the nation’s growing passion for belts and suspenders, Prestige recently added a third, graveyard shift.
And on Wednesday, Goode was heading out to rent a building for the entire retail division because her operation has outgrown its space.
Financing the company’s rapid growth was a challenge until recently. When sales were hovering around $1 million, Goode said several bankers turned down her loan applications because her business was considered too small.
“Getting a bank loan is a real tough thing for a small business,” said Goode. But, three years ago, a local bank finally offered her a $500,000 line of credit for accounts receivable. That line has been increased to about $2 million, and Goode said her bankers are encouraging her to borrow more money.
At the factory, skilled workers operate a variety of sewing, cutting, punching, slicing and riveting machines. Others hammer on decorative studs, attach buckles, link chains, and spray paint the raw leather edges. Workers are paid by the piece, rather than by the hour, so the faster workers earn the most money.
“Some people earn $5 an hour, but some are earning $7 or $8,” said Goode.
Goode said the factory can meet orders for the simpler styles for the “cut-up” trade in two to three weeks. The more complex designs, destined for the retail market, usually take four to six weeks.
If the business continues to thrive, she may branch out into men’s and children’s belts, as well.
“I never thought it would grow this fast,” said Goode. “It just happened.”
When she is not at the factory or meeting with customers, Goode spends her time with her son, Brandon, 9, or working out at the L.A. Athletic Club. She sees her husband, Rick Goode, at work because he is designing a new computer system for the factory.
Goode admits to working about 12 hours a day--and loving it.
“I’ve taken one vacation in the last 10 years and I hated it.”
Apparel Export Talk
An export seminar geared toward apparel and textile manufacturers is scheduled for Tuesday from 8:30 a.m. to 5 p.m. at the Los Angeles Hilton. Industry leaders, successful exporters, overseas sales representatives and others will discuss how to develop foreign markets. The session is co-sponsored by the Fashion Institute of Technology and the Small Business Administration. The cost is $125 for the first person in a group and $100 for each additional person. The Hilton is at 930 Wilshire Blvd. For information and reservations, contact Stephen Harwood: 213-894-7900.
Women Franchisees
“Franchising for Women” is the subject of a daylong session Feb. 25 at the Hyatt Wilshire, 3515 Wilshire Blvd. Topics range from why women should consider franchising to how to raise money to buy a franchise. The seminar is sponsored by Women in Franchising Inc., a private marketing and consulting firm. The cost is $89 per person. For information and reservations, write: Women in Franchising, 175 N. Harbor Drive, Suite 1311, Chicago, Ill. 60601, or call: 312-819-0600.
Founders Meeting
The Assn. of Venture Founders is holding its winter meeting in Dana Point, Calif., Feb. 23-25. AVF is sponsored by Venture magazine and the Kenan Institute of Private Enterprise at the University of North Carolina.
Speakers include Arthur Lipper III, chairman and editor of Venture magazine; James Belasco, a management professor at UC San Diego, and Jeannie Graves, president of Claim Net, a company specializing in debt collection. The cost is $650. For information write: AVF, 805 Third Ave., New York, N.Y. 10022, or call: 212-319-9220.
