Need to Register?

Tshirtguy · August 18th, 2008

Should have said wholesale not whole.

I have an online store and brand right now and pretty much only sell that way except for a handful of retail locations that carry some of my shirts.

I'm looking to make a bigger push into retail stores. I was thinking of making a separate brand name for selling to stores and a separate site that just shows the product catalog but doesn't sell to web customers. I'm thinking of doing that so a retail store doesn't think I'm competing with them if my web address is on the shirt label they are selling.
Anyone have any thoughts on that? Is it overkill? Should I just stick with the one name and sell both online and wholesale to stores?

I sell for around $16 online and the stores resell at around $20. I don't want them to think I'm undercutting their sales online.

splathead · August 18th, 2008

It may have been an issue a few years ago, but retailers are now use to manufacturers selling direct too. Look at Ed Hardy, etc.

I think you shouldn't split up your brand. Operating costs will at least double to maintain a separate identity and name recognition will be diluted.

In this case though, it is a must that your online prices are no lower than retail prices.

Tshirtguy · August 18th, 2008

That's the other part of it. I sell for around $16. I think if I raised my online price to $19.99 it would work better for a retailer but I hate to do something to hurt part of my online business.
Need to keep that $ flowing in

.
I may try that for a few weeks. Raise the price and see how it goes. Maybe make shipping free to counteract the price increase.

Jasonda · August 18th, 2008

You can sell the same brand both retail (direct to customers) and wholesale (to stores). Many people do this successfully and it's a good strategy because you save money on marketing and production and save time on design.

The things you mentioned in the original thread are exactly the things you have to watch out for. Retailers do not want to see your website on the hang tag or label. They do not want to have their customers walk into their store, see the label while browsing and then buy it directly from you.

The solution here would be to not put your website on the label, and have two sets of hang tags - one set with your website for your web customers, one without for your store customers. Even if you don't put your website on a hang tag, customers are smart enough to Google and find you if they really want to.

I would also say that you should definitely sell at the same price as the stores or very close. If you are worried about losing your online customers there are a number of ways you can explain it to them. One of the best ways is to come out with a new line of products which is better in some way (better quality blanks, nicer designs, etc), therefore justifying the price difference. Then sell off the remainder of the old stock at the old price and keep the new stock at the new price.

These two topics have actually been discussed a few times in this section of the forum so if you look around you will find a lot more helpful info.

Tshirtguy · August 18th, 2008

The simplicity of one name is very appealing but I've got a lot of opposite advise from people in the industry. As many have suggested a separate name as the same name. I'll have to put some thought into this.

Jasonda · August 18th, 2008

Quote:

Originally Posted by Tshirtguy


	The simplicity of one name is very appealing but I've got a lot of opposite advise from people in the industry. As many have suggested a separate name as the same name. I'll have to put some thought into this.

There are pros and cons on both sides. I think the benefits of sticking with one brand are more tangible (saving money, etc). Before you decide I suggest you add up the hard numbers and see exactly how much more time/money you'll need to spend to have a separate brand for wholesale. That should make the decision easier.

splathead · August 18th, 2008

Quote:

Originally Posted by Tshirtguy


	I sell for around $16. I think if I raised my online price to $19.99 it would work better for a retailer but I hate to do something to hurt part of my online business.

The other option would be to reduce your wholesale price to retailers. Especially if you expect online sales will outpace retail sales.

Basically you would be talking about getting $2 (?) less per wholesale item vs. increasing your online retail price by $4 and risk losing those sales.

Tshirtguy · August 18th, 2008

That's a good point too. I keep flip flopping with it in my head.

Jasonda · August 18th, 2008

Whatever you do, make sure your wholesale price is at least 2x your cost. If you reduce it lower than that you risk not being able to cover your overhead and marketing expenses.

txmxikn · August 19th, 2008

ALso take into account that the end price for buying online will be close to the retail price unless you ship for free. Maybe you could price your t-shirt online at $20 and include "FREE SHIPPING" with every purchase.

zyin · August 27th, 2008

Quote:

Originally Posted by txmxikn


	ALso take into account that the end price for buying online will be close to the retail price unless you ship for free. Maybe you could price your t-shirt online at $20 and include "FREE SHIPPING" with every purchase.