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Wholesale Question



 
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Old May 15th, 2009 May 15, 2009 5:11:05 PM -   #1 (permalink)
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Default Wholesale Question

I recently started up a line of tees and lately I've been getting a few offers from resellers wanting to purchase my tees wholesale. I have done a little research on this but am still unsure about the process. I understand that doubling your production cost for each shirt is an ideal way to set your wholesale prices. Then, do I just ask the reseller how many they want to order and then order that many from my printer?
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Old May 16th, 2009 May 16, 2009 12:02:02 PM -   #2 (permalink)
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Default Re: Wholesale Question

Pretty much.

Or you can give a few of them a line sheet with an orderform and a ship date, then put in all your orders at once. Or order a bunch yourself, hold inventory, and fulfil wholesale orders as they come in.
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Old May 16th, 2009 May 16, 2009 1:16:34 PM -   #3 (permalink)
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Default Re: Wholesale Question

CrackPixels,
On a side note, I love your portfolio. Very nice work! You're quite talented. Question. Why not have a Gno shirt? He's a cool looking little guy.
 
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Old May 16th, 2009 May 16, 2009 1:53:08 PM -   #4 (permalink)
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Default Re: Wholesale Question

^Thanks. I'm planning on using the gnome on a design one of these days.

Going back to the original question, one thing I'm slightly confused about is this...

Let's say the reseller wants to purchase more than 24 pieces (which I'm planning on using as my minimum) from me wholesale. Do I adjust the wholesale price to match the order or do I keep the same wholesale price for any amount of orders? For example, if they ordered more, would I need to give the reseller a lower price?
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Old May 16th, 2009 May 16, 2009 3:36:21 PM -   #5 (permalink)
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Default Re: Wholesale Question

Quote:
Originally Posted by crackpixels
For example, if they ordered more, would I need to give the reseller a lower price?
Absolutely...that's just good business. They buy more which makes you more money, and as thank you to them for that additional business, you give them an additional discount. Everyone is happy in the end.
 
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Old May 16th, 2009 May 16, 2009 3:44:06 PM -   #6 (permalink)
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Default Re: Wholesale Question

Is it unusual to give the reseller, say a 2-3 weeks (business days) turnaround? I think I need that amount of time to receive the shirts and relabel them and ship them to the reseller.
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Old May 16th, 2009 May 16, 2009 11:46:07 PM -   #7 (permalink)
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Default Re: Wholesale Question

Crack- nice work! Very nice.
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Old May 17th, 2009 May 17, 2009 8:42:26 AM -   #8 (permalink)
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Default Re: Wholesale Question

Quote:
Originally Posted by crackpixels
For example, if they ordered more, would I need to give the reseller a lower price?
It's entirely up to you. Both are common. Depending on your product and your buyers, you may not be selling a wide number range. That is, orders might always be for 24-36 pieces, but never 144. In a situation like that, there's less reason to bother coming up with and mentioning a sliding price scale.

Obviously anyone making an especially large order would always expect a discount.

Just as sliding price scales are standard with your printer, it's common to keep that structure all the way along the line.

If you're dealing with huge retailers (Walmart and the like) you have to do things their way, and that's that. If you're selling to smaller independent stores then you're basically dealing with another individual small business owner much like yourself. There's no single correct answer. Just make sure you're professional, consistent, and approachable.

Quote:
Originally Posted by crackpixels
Is it unusual to give the reseller, say a 2-3 weeks (business days) turnaround?
Again, it depends on your business model, their business model, etc. Yes, some clothing brands work on a 2-3 week turnaround. It's probably quite common. Some have turnarounds of a few months (but they tend to be larger brands). Some will ship immediately.

Certain retailers may require one method or the other. For example: some work out what they're ordering a season in advance, and if you rock up at the last minute with an order form and immediate shipping, it's too late. Others won't be planning that far in advance, and they want goods that can be provided when they need them (i.e. straight away).

Again, no universal answer. I think 2-3 weeks is reasonable if you're dealing with small retailers. If you go that route, you might want to combine it with very good customer service (for example, calling after a while to ask how things are selling, and if they'd like to make a re-order - rather than waiting for them to realise they only have 1 left on the rack, a re-up would take 3 weeks, and they'd rather just move on to something else).

Some retailers are more organised than others. Some clothing labels are more organised the others. I'd suggest the best thing is to be as organised as you can be, make the best of whatever limitations you can't get around, and listen to your customer's needs as much as possible.

You might find that as you grow in success, are more confident of sales, etc. that you warehouse a small inventory for quicker fulfilment. Or you might find that your customers are used to dealing with longer delays, and they consider a few weeks just fine.

It's okay not to have all the answers upfront, and to let their behaviour dictate your behaviour.
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Old May 17th, 2009 May 17, 2009 12:19:40 PM -   #9 (permalink)
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Default Re: Wholesale Question

^Solmu, thanks for the lengthy explanation with everything. It's really helped me grasp a perspective on the whole thing.

And out da box, thanks for the kind words
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