Serious about starting a clothing line? If so subscribe to our RSS feed or Email notifications for exclusive articles/updates that you don't want to miss!

Yesterday while covering the weekly wrap up of the better of the forum post. One of the topics was on Resources that can be used to regain funds on unsold merchandise.

So I promised you guys we would go a little deeper into the subject. Last night before going to sleep I brainstormed some ideas that you could use to rid of the unsold merchandise some will help you regain funds while the others might make you sleep better at night.

I also thought about what some of the big guys in the fashion industry do as opposed to the smaller independent brands.

These are all methods I have seen or done myself so they are all tried & tested!

Warehouse Sale

I know for sure this method has been used by many in the independent clothing industry. I’ve seen The Hundreds and even online retailers like Digital Gravel host warehouse sales where they clear out inventory of unsold merchandise from the season before.

Now you could speed up the process by offering huge discounts, but most will still buy at regular price because you are an indie clothing brand most likely your clothing isn’t as widely available and they haven’t seen what you have to offer.

Off Price Retailers

Now I don’t know exactly how retailers like TJ Maxx and Burlington work, but I doubt we will see any The Hundreds or Five Four clothing in their anytime soon. These retailers usually receive huge discounts off of last season or second hand goods that usually have weak seams or distorted prints or to sum it up factory defects.

Clothing companies including Tommy Hilfiger, Ralph Lauren and even a little of Lrg have been in off price retailers. Mainly because they produce enough to where they can offer huge discounts and still profit or at least break even on the sell-off of the unsold stock during a particular season.

Use Them As Incentives or Upsell

It might not make you back full value, but it will at least reach break even point or clear up some?clutter?in your warehouse. Offer them as a free gift with every purchase over a $100 or more on your online shop. Little things like this will increase the chance of a transaction. It will also make your customers more loyal and let them know that you care or appreciate their business.

Giving Clothing to Charity or Donate (Tax write-off)

This could make you sleep better at night and give your business a positive outlook in the public eye. Give clothing to charity or donate them to the homeless shelters. If I’m not mistaken donating to certain charities can be a tax write-off depending on the value of the donation. Matter of fact that is why you see so many celebrities that happily give $1 million dollar donations, because otherwise taxes will eat away at their salaries, but don’t get me wrong some do it for the pure feeling of giving .

These are?just some of the ways you can?make?some money back off of?unsold stock, but if any of you have other methods then by all means let us know with a?comment.?

Serious about starting a clothing line? If so subscribe to our free newsletter for exclusive articles/updates that you don't want to miss! or Our RSS Feed

Continue This Discussion In Dobizo Forum

Popularity: 7% [?]