2007
Fashion Industry Shadiness Lesson 1: Leave Your Feelings At Home
Posted by: Fashion06 in Business, Financing, Starting your own line |
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As you grow and develop your apparel business you will learn that most companies in the industry that you work with will be looking out for what’s best for them…no matter what they tell you.
I’m here to tell you that I have met my share of people that I thought were around to help me or watch me grow, but most likely took advantage of me being naive to the business world or fueled their own business off of my connections or know how…or lack thereof.
Many of my problems arose when working with stores and at the time financing was one of the biggest issues many of my companies faced and I still run into barriers today, but have more knowledge and know how to where I can overcome or find a solution that will fit my budget.
Part of my reasons for writing this article today is to tell you that if you don’t steer straight your ship will sink…I know you probably don’t like hearing phrases and sayings , but it’s true for the most part. Many of the businesses that I worked with that messed us over are no longer in existence or were having hard times when we did business together and me thinking/knowing they were in a similar situation was willing to work out longer payment terms with them…instead that should of been my red light to stop!
For the most parts my bad experiences come from working with stores on consignment. Not really thinking that they buy all the other brands why should they pay for mine on Net 30-45, which eventually turned into Net-never. One of the stores I worked with was based out of Atlanta and was maybe the third-fourth store I worked with named Phat Gear and if you wear urban/street wear clothing and ever been to Atlanta than you have most definitely heard of this store being that it was located in one of the more popular areas for shopping in Atlanta Downtown/Five Points. I’m not sure of their existence, but haven’t ran into the owner (I want mention his name) at any shows lately, but at one point it became a ritual for me to run into him at the Americas Mart or Cobb Galleria show and ask how my clothing was doing and when would they be able to make the payment. Most of the time he would give me a sob story about back taxes or payments he owed companies that were trying to seize his assets and wanted me to have sympathy for him. I think that is one mistake I made by befriended store owners and not just keeping on business terms, but still nice and professional.
When first contacting the store they first got me sidetracked by acting as if they were excited about carrying my no-name brand and telling me what they could do for my fashion line and the exposure their store would create. I’m just being an eager entrepreneur ready to make a sell and see my clothing in a popular store so I never stopped to think about what was going on and really ask myself or business partners any questions. If you work on consignment All the risk is on your company where as you could put those garments to use as promotional items or sell them to another store that actually wants to take a chance on your brand and buy a few pieces from the collection. By the time you split the check with the retailer and get your cut and receive the leftover stock that is usually not able to be sold at full-price due to customers trying them on and just stretched out and looking dated from sitting on the racks or hangers. You will be lucky if you can even get them off that late in the season depending on if they were seasonal items like sweaters, scarves, long sleeve t-shirts or hoodies.
Look out for Part 2 of this entry tomorrow!
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October 4th, 2007 at 9:01 pm
Lesson 1
Consignment: Just Say No?
E
October 5th, 2007 at 8:23 am
Actually Fred, you could do everyone a major favor if you did mention the retailers name that stiffed you and most likely many others. Retail is full of deadbeats like this guy and they thrive on new clothing companies. Back taxes, seizing assets, wanting sympathy are all part of the script dishonest retailers learn over the years. Blogs like this help prevent it from reoccuring.
I totally second E’s position on consignment. Especially a brick and mortar store. It doesn’t work 90% of the time and retailers have no pressure to sell you product as sell thru doesn’t matter and they could care less about shopworn merchandise. Not their problem
October 5th, 2007 at 8:26 am
Okay Thom…I will think about it. I did mention the store name is Phat Gear and they are/were two locations in Atlanta.
I’m not sure now. Hopefully they have closed for good, but the guy was African and his name was Hassan.
October 5th, 2007 at 10:01 am
Although I am new to the business and very eager to get up and running. I will not accept any type of consignment from any Brick and Mortar stores. The way I see so far is this is a sure way to obtain a high level of stress in your life and business. I have never been the type of person to guess if I will get paid this month., I cant stand that lifestyle… The fashion industry is full of risks and only a handful of people like Fred and Thom are ginuine and sincere in their efforts to help others succeed. I know that me not doing the consignment thing may make my gaining friendships with buyers a little harder, but as it stands its probably better to keep it strictly business when it comes to buyers until you have room and the capitol to do otherwise. My plan. - I am taking my losses up front willingly by giving $1k of shirts away for free. Ofcourse mainly to buyers who will be willing to take a risk on my clothing in the future by actually buying it . It will be better for me in the long run. My approach - If you like it you will buy it - If you dont you wont - and I will have to put more effort in gaining you as a customer whether by more designing hours or better materials… One way or another someone will like something I put out there and actually be willing to pay for it…
Thanks for the post Fred
9th CLOUD CLOTHING CO.
October 5th, 2007 at 2:26 pm
48 lawz of power.. never take it personal… this should b in every aspect of life…
October 5th, 2007 at 3:35 pm
9th CC said : ” not doing the consignment thing may make my gaining friendships with buyers a little harder” .
Not necessarily so. I think it may actually increase the respect level they have for you. If you truly feel you have a product that the consumer likes, wants, and will buy, ask him to place an order. You don’t have to sell them scads of product , but why not start out on a smal scale and see how it goes. Check back regularly to see how the product is moving. Ask the staff for an opinion to see what they think.
This puts the responsibilty directly in your court to create quality designs at price points suitable to the retailer you are pitching.
You need to find some anchor stores to bolster up the line, get some cash flow happening and expand from there.
Oh Fred, I think Mr. Phat Gear 2 Stores Hassan from Africa will reappear and continue stiffing designers as he did to you, but hopefully this serve as warning to others to use caution. Getting burned early can cause the collapse of any brand.
I think there are some websites that are dedicated to enlightening designers of the perils of deadbeat retailers.
Great future topic
October 5th, 2007 at 9:03 pm
Good I dea Thom . Trust me 90 percent of the tips you Fred and the other fashionist provide are in printed in my note book,. I am actually making a little personal collection of notes..
Thanks again
9TH CC
October 8th, 2007 at 12:53 pm
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October 9th, 2007 at 9:08 pm
[…] here for Part 1 and Part […]