2007
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I have noticed an increased interest in how much you should markup your clothing garments or how do you determine your clothing lines markup. Mostly because people are concerned that they are losing orders due to high margins on their garments markup. Since I already wrote an article on determining your markup, which you can read . I present to you an article on reasons why your garments wholesale prices could or could not affect a buyers decision on purchasing your clothing brand for retail sale.
“Are my wholesale clothing prices affecting buyers decision to purchase my brand for retail sale?”
Probably not if you did your market research and are approaching the right stores that sell other clothing brands that cater to your market. I’m pretty sure it has happen to all of us a buyer shows interest in your clothing line and ask for more information (delivery,prices,minimums). Well you send the email with all the info they requested and you never hear from them again afterwards. Automatically you will think your prices turn them off. Sometime that is the case, sometimes it’s not. These are reasons why they may or may not have been interested in carrying your clothing brand.
- They were just looking for store floor space fillers or whatever you want to call it
. Basically a last minute buy/stock for empty floor retail space for the season. Most likely buyers will purchase garments that complement more popular items that they can get for cheap wholesale prices. - Maybe your prices are too low! and didn’t fit their customer target. Surprised you right? This can definitely happen if you don’t do your homework on your market and the prospect. Approaching a store that sell premium quality clothing and your clothing retails for less than most of their garments wholesale prices….wouldn’t accept your line. Unless it was just cheap in price and not quality…then they may just take you for a sucker ;). Make sure you spend time selling your brand to stores that have prices who match the target customer and market that you are selling too.
- Some buyers just like the chase. For real I’ve been turned down by stores plenty of first times, but it is the second and third times sometimes fourth when I landed the order. They like to see that you believe in your line and that their store is a great fit for your clothing company.
- Sometimes they just find something that is a better fit for their store.
The main thing is that you are persistent in getting their attention and letting them know that your clothing line exist by staying in their face. Most of the time one call is not what it takes and you will find that out soon enough. No matter how great your designs are you will still have to put in work in order to ignite buyers interest in your clothing brand and keep them interested…you will know, because they will return season after season.
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Fred
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April 4th, 2007 at 7:22 pm
i found that the best way to price my stuff was to find who i felt was my closest competitor and back out their retail price, assuming the retail markup being 60% (its better to over estimate and most smaller stores are trying for 60%) example: retail = $100, so more often then not the wholesale price was $40 - $50. If you cant make money at $40 wholesale then you need to re-think you item or your supplier. Or even accept smaller margins until your production quantity goes up.
But it helps to know what your production cost will be when your quantity goes up so ask your supplier. Get price quotes at 180pcs, 360pcs, 600pcs, 1200pcs & 3600pcs. That way if you land a large account and they expect a better price you already know how much you can afford to offer and you have your own pre-set sales goals at different levels. And you will know the break prices (example: 450pcs@$1 = $450 but 600pcs@ $0.75 = $450) so once you get the quantity discount you might as well order 600 for the same price you would have paid for 450.
Dont get stuck in a bad margin situation by doing your math the opposite way like they would teach you in school; FOB cost $20, so wholesale should be $40, you might cost yourself $10 because of the preceived value the final consumer, compared to your competition, was more than you thought you could charge. its not about how much you think you should charge its about how much you could charge.
if you send a linesheet, catalog or sample to a store and you dont hear back from them just call them and ask what they thought. If they thought your prices were to high they will tell you. I found that when your first starting out feedback is almost as valuble as an order.
i totally agree that some accounts just want to test your commitment and make sure that you are going to be around season ofter season before they will give you an order.
I was told “dont let retailers control the price of your line, set your price and make your product worthy of that price” so what i did was set my price then made my goal to deliver more then they expected at that price in quality, design and customer service.
hope this helps someone.
i was bored and i really like this site.
April 6th, 2007 at 5:10 pm
That’s was up. Yeah, every time you are bored you need to holla:)
April 8th, 2007 at 1:33 pm
Great information…especially the “dont let retailers control the price of your line, set your price and make your product worthy of that price” definitely makes sense!
June 3rd, 2007 at 4:36 pm
That was good information,cause thats the path im going to be taking real soon.My attorney told me once a store agree’s on selling my merchandise that’s an additional $600 and im on my way.Even though i know it sounds easier than it is.