livesoul

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I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.

 

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Uncle John

Wayne, price your wholesale at your cost to produce and what you need for profit. if you want to make $4.00 per shirt add it to cost. You are the one who decides if you offer a quantity discount and tells the customer delivery time unless your dealing with a large retailer who says when and how many.
If small shops buy from you because they think they can sell them, then don't buy back.
It standard for a retailer to double the price they paid for an item so they have the option to reduce the price. I hope it helps, John

 

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jrotem

Quote: Originally Posted by Uncle John It standard for a retailer to double the price they paid for an item

Yes, 100% markup is called keystone markup and as John says, it's pretty standard. However, a couple of things can affect that:

1. You might want to keep in mind the shop's general price point for similar items -- you can discuss with the retailer to make it work for both of you. Maybe the shop sells tees for $24, so they'll expect to buy them for $12. If they cost you $7 to make, and you want to make more than $5, you can always negotiate for something you can both live with. A small shop understands this, but I can't say what happens in a big store.

I adjusted my prices for different items so they all evened out in the end, but it was basically keystone.

2. If you also sell the same items as retail, you don't want to price them less than your retailer does (cannibalizing your retailer.) That can get tricky, again, depending on how much you want to profit, and how much the shirts cost you in the first place. So that could affect your profit margin as well. Or you can raise your own prices.

I haven't sold to many shops yet, but they were fine with waiting till the shirts got made, 2-3 weeks including the business agreement. It was not a huge batch, 100-something. Buy-backs were not part of the deal at all -- that would more like consignment and clothes do not fare well that way after people have been handling and trying them on for months.

Good luck! Let us know how it goes. I'd like to do more of this myself.

 

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livesoul

Nice, thanks both of you. Yeah this is helping me figure out how low to try and keep my cost to. And I wasn't sure if stores typically tried to throw in a buyback amendment or something. I want to start out with some high quality gear. I've got some connections to get plugged into a couple stores so I wanted to approach knowledgebly the first time.

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I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.

 

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