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Discuss the process of getting your t-shirt line into brick and mortar stores and selling offline. Topics include industry tradeshows, events, line sheets, sales reps and other retailing tips and advice.



Wholesaler Partnerships Question

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Old 2 Weeks Ago May 9, 2017 3:56:08 PM -   #1 (permalink)
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Default Wholesaler Partnerships Question

Hello,

I own a lifestyle apparel brand (casual wear) and recently a big company in our niche reached out to us wanting to do a partnership.

This partnership essentially is just a wholesale partnership, they purchase our clothing at discount and re-sell it, but they want their logo (small logo) to also be on the shirt.

They are a bigger company and have the ability to purchase alot of shirts from us upfront so I'm very interested in it but I'm wondering if there are any issues with us putting their "small" logo on our shirts as well.

I was initially worried it would dilute the brand and we are still in the beginning stages of researching the partnership but does anyone have any experience with this and anything I should be concerned with?
 
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Old 2 Weeks Ago May 9, 2017 7:40:40 PM -   #2 (permalink)
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Default Re: Wholesaler Partnerships Question

Didn't experience this before but from my legal knowledge I know that there won't be a legal problem. There might be a branding problem for your brand and the confusion 2 logos might create but that's about it.
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Old 2 Weeks Ago May 9, 2017 7:59:55 PM -   #3 (permalink)
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Default Re: Wholesaler Partnerships Question

A larger clothing company, operating in the same sphere as you, wants to brand your gear with their logo.

Are you competitors?

The larger concern I would have is losing my identity and be seen as some type of sub-brand to the larger brand.

Last edited by splathead; 2 Weeks Ago at 07:11 PM..
 
 
Old 2 Weeks Ago May 9, 2017 9:31:40 PM -   #4 (permalink)
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Default Re: Wholesaler Partnerships Question

So it's not a clothing brand, it's a different niche altogether but we share a similar target audience and so that's why it makes sense for both of us currently.

My logo would be the same as it always is, same size, placement, etc. but their logo would be 60% smaller and be slightly above my logo.
 
Old 2 Weeks Ago May 9, 2017 9:36:17 PM -   #5 (permalink)
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Default Re: Wholesaler Partnerships Question

I also considered losing my identity but they are so Niche that I would still have access to the biggest market, my current market. And right now still being new they have the ability to buy a massive quantity of shirts from me and sell them/get them out to the market.

I still have to get my business lawyer to draft up a contract and I'm not sure if the other company had a set time span for this partnership, but I was thinking I could always end it if I felt that my brand was getting impacted too much, or just do a 6 month partnership and have that in the contract so at the end of the 6 months I'd be free to re-assess whether or not we would want to continue to work with them.

I just think right now where as I'm so new and still working on getting traffic and eyes on my product, this would be the jump start I need financially but also brand wise just getting it out there - keep in mind I have about 7 designs running right now and we would just be using 1 design for this partnership/wholesale orders.
 
Old 2 Weeks Ago May 10, 2017 7:06:42 AM -   #6 (permalink)
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Default Re: Wholesaler Partnerships Question

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Originally Posted by PNWLifestyle
So it's not a clothing brand, it's a different niche altogether but we share a similar target audience and so that's why it makes sense for both of us currently.

My logo would be the same as it always is, same size, placement, etc. but their logo would be 60% smaller and be slightly above my logo.
I would go for it then, for sure.

Our niche is racquetball clothing. And I envision a larger company with the same audience wanting to do this. Maybe a racquet or shoe company. I would jump at the chance.
 
Old 2 Weeks Ago May 10, 2017 9:52:42 AM -   #7 (permalink)
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Default Re: Wholesaler Partnerships Question

They're not a direct competitor, you get to make money, and with your logo remaining on the shirt you get free exposure to their crowd. Sounds like a great opportunity.
 
Old 2 Weeks Ago May 10, 2017 10:33:41 AM -   #8 (permalink)
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Default Re: Wholesaler Partnerships Question

I was talking to a few colleagues, some older guys in their 50's who run businesses the other day and they said I should becareful because something about the market they sell to is an asset and if my company went under or something was to happen to it, they could legally own that market or something. It made sense at the time but I don't understand the full extent of it yet...any thoughts?
 
Old 2 Weeks Ago May 10, 2017 11:30:04 AM -   #9 (permalink)
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Default Re: Wholesaler Partnerships Question

It is very difficult for us to envision scenarios without knowing details on your brand and the brand of the other co.

On the surface; you don't own markets. You have market share depending on how well your product sells. You may even have client lists but it's hard to imagine a strategic partner having rights to that absent a contract.
 
Old 2 Weeks Ago May 10, 2017 11:34:29 AM -   #10 (permalink)
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Default Re: Wholesaler Partnerships Question

Looking at your other posts on the forum I'm amazed that you have a large company that is looking at your brand. It appears that you are just launching a new business with no knowledge of shipping or production equipment like heat presses.
 
Old 2 Weeks Ago May 10, 2017 11:43:53 AM -   #11 (permalink)
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Default Re: Wholesaler Partnerships Question

Quote:
Originally Posted by ProArtShirts
Looking at your other posts on the forum I'm amazed that you have a large company that is looking at your brand. It appears that you are just launching a new business with no knowledge of shipping or production equipment like heat presses.
I've been running for 5 months, and am not new to business. In regards to shipping I'm looking for more cost effective ways to ship than we currently are and you clearly have no business sense if you believe that you need to own or know about heat pressing equipment to run a successful tshirt business.

Instead of making these negative posts I would suggest you work on your business and marketing skills, and learn the fundamentals. "Think & Grow Rich" by Napolean Hill is a good one to start with.
 
Old 2 Weeks Ago May 10, 2017 11:47:37 AM -   #12 (permalink)
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Default Re: Wholesaler Partnerships Question

Hi Joe,

Thanks for your insights, now that you mention it I believe he was talking more about Client Lists but I've made an appointment with our business lawyer to review all of this anyway. Just wanted to get some more sets of eyes on it to see if I missed anything. I'm purposely keeping it vague to protect my business and my partner.
 
Old 2 Weeks Ago May 10, 2017 1:25:31 PM -   #13 (permalink)
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Default Re: Wholesaler Partnerships Question

Quote:
Originally Posted by PNWLifestyle
Hi Joe,

Thanks for your insights, now that you mention it I believe he was talking more about Client Lists but I've made an appointment with our business lawyer to review all of this anyway. Just wanted to get some more sets of eyes on it to see if I missed anything. I'm purposely keeping it vague to protect my business and my partner.

Based on the deal as you describe it, I see no reason either one of you would be sharing client lists.
 
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Old 2 Weeks Ago May 10, 2017 1:49:29 PM -   #14 (permalink)
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Default Re: Wholesaler Partnerships Question

Quote:
Originally Posted by splathead
Based on the deal as you describe it, I see no reason either one of you would be sharing client lists.
Definitely. I'll be sure to get my lawyer to add in some clauses about that as well just to be safe. I appreciate your help on this - just don't want to get screwed with this opportunity because I'm just seeing the $$ and brand potential right now, but I feel it's safe and worth it.
 
Old 2 Weeks Ago May 10, 2017 7:09:52 PM -   #15 (permalink)
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Default Re: Wholesaler Partnerships Question

Quote:
Originally Posted by PNWLifestyle
just don't want to get screwed with this opportunity because I'm just seeing the $$ and brand potential right now
The only real possible way for you to come up on the short end is to extend credit for product shipment and then not get paid.

1. Watch your receivables like a hawk. They will want credit terms, sometimes as long as it takes for the product to sell. Don't fall for it.

2. No return of unsold merchandise. Especially since their logo is on it. Once they buy it, they own it.

3. Mind your shipping costs. It's a profit-eater. They should be paying for shipping.
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