2007
Deciding On a Minimum Order and How Many Units Should Sell Per Year
Posted by: Fashion06 in FAQ, Financing, Starting your own line |
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Well somebody over at the Real Brother Collection asked the question(s)…
below:
My questions are these:
1. Deciding on a minimum order, which one of these below should I use?
1. 6 units per style, per color, per size.
2. 6 units per style, per color,
3. 6 units per style, color and size?
Note: This is for a tee shirt line, with one style and 12 graphic designs in 3 color-ways each.
2. How do you determine how many units of shirts to sell per year, starting off?
3. How many units could a one particular boutique store buy from a new line?
1.Deciding on a minimum order
The best way to figure out how many units, styles, colors and all that good stuff is to first figure out the demand, plus which colors and sizes will sell the best.
So you will first need to find out who your customer is and what there sizes and color preference are when it comes to clothing. Since your clothing seems to cater to the urban audience I would say the smallest size should be a large to 3xlarge-4xlarge. That sizing scale will cover most of an urban clothing company’s audience.
Considering most retailer orders are usually multiples of six using that formula is the best. Choosing a minimum order for your clothing company comes down to more than convenience or pumping up the amount each store orders, but how much is your company actually able to produce on your budget and how many pieces do you need sold to break-even or more importantly stay afloat to the next season.
Otherwise it doesn’t matter what your minimum order is because too small can leave you out of business and too-high can have your customers running in the other directions. Make sure and take a glimpse at this article Are my wholesale clothing prices affecting buyers decision to purchase my brand for retail sale?
2. How do you determine how many units of shirts to sell per year, starting off?
How many shirts you sell per year is simply up to the supply and demand of your clothing line. Unless you have some kind of exclusive/limited policy like some clothing companies (Bathing Ape, Greedy Genius) it is simply up to how consumers accept and adapt to your brand name.
You can predict how many shirts you plan to sell in order to come up with financial analysis and budget planning, but a concrete figure especially in the early days of starting a clothing company is out of the question. When a company becomes more established and has a more solid customer base you can estimate how many units you might move per month, but still expect the unexpected. Some clothing companies go to the Magic show and sell $500,000 worth and then others go there leaving with a handful of business cards…believe me the odds are against you.
3. How many units could a one particular boutique store buy from a new line?
This is another question that simply depends on the size of your clothing line…meaning what you have to offer. Denim, tops, bottom, head wear, accessories or whatever it maybe. What pieces are outfits and which are separates can definitely inflate an order, but less pieces or only t-shirts can deflate an order.
Considering this question is based off of a new line and guessing you’re independent it will be relatively small to begin with, because most retailers are just doing a test order. They want to see how consumers react to a product and in the process put their business at the least risk possible. If they have a good sell-through be prepared for a re-stock, if not then you need to go back to the drawing board or better target your distribution.
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September 12th, 2007 at 8:12 pm
I’m really liking the dobizo answers articles and answers. The faq is great alone and even better with the updated questions.
September 13th, 2007 at 9:25 am
This is a great article keep em coming
September 13th, 2007 at 9:31 am
This was one of the hardest things for us to get right first we ordered way to many and lost so much money of course nothing is set in stone but u would rather run out of shirts then to have a bunch of extra
September 16th, 2007 at 1:51 pm
Alwayz better to play it smart.. instead of trying to play it safe..
September 23rd, 2007 at 9:35 pm
good article …its something to keep in mind for sure