DREAMGLASS

If you want the payment when parting with the goods, then consider retailing the products yourself.

You have some nice designs there so don't get despondent about your opportunities. I live in Europe so don't know what retail opportunities exist in your part of the world, but I would be looking at whatever the stateside equivalent of stalls in shopping centres, upbeat markets, party plan, shows, fairs or any event where there are lots of people.

 

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Comin'OutSwingin

Quote: Originally Posted by 237am i dont see anything wrong with payment terms and my catalog....really....

Not to sound rude or harsh, but that's the problem. It's just not done that way.

All of your examples are nice and fine, but just don't apply to this particular situation. I understand completely what you're saying.

But Jasonda put it perfectly when she said that what we're talking about here are standard practices.

Quote: maybe i'm not understanding the whole industry......

You're not really understanding the whole industry.

Quote: but if you dont get payment until after 30 days once they receive the goods....then you mine as well do consignment and take the risk even more....

Not really. You can still get payment before shipping.

That's waaaaay better than giving away your product and hoping to get paid when it sells.

I would suggest that you visit a link on the left menu bar for a site called fashion-incubator.com. If you want to learn more about the industry, the person that runs that site (Kathleen Fasanella) also has a wonderful book called "The Entrepreneur's Guide to Sewn Product Manufacturing".

It's a great place to start to learn more about the apparel industry. I'm pretty sure Jasonda has read the book, and I know that she visits the site quite often!

Once you learn more about why things are "standard practice" it will help you in trying to accomplish what it is you're trying to do and see why you need style numbers and why your very nice catalog may in fact be counter-productive.

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nution

Does anyone have scans or examples of a regular old catalog. One thats just the norm? Cause I would think you would at least need to show some pictures, colors, etc. in that type of approach, especially if your not going to be in direct contact with them, just sending a catalog and hoping to get an order.

I am having trouble imagining what the normal catalog would look like.

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stuffnthingz

This is a very informative thread, 237am, thank you for taking it in the chops as folks hash this out. As a retailer I always expect full payment up front before I even order blanks. It sounds like the wholesale side of things is a whole different ball game. I am going to be very, very cautious if I head down that path. I have been a retailer now for a couple of years and I cannot think of even one scenario where I was charged up front for product, I am always charged when it ships. I never even considered the tenuous situation that puts my wholesaler/manufacturer in. Now I have also never backed out of a deal before, however I have made changes and they were always accepted. Very good topic!

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237am

c-o-s and jason

thanks for the input..... just a little ryled up over the facts i guess...... after spending 2 years trying to push the line local and then looking to get it out of detroit...then i'm dealing with the little things like numbers and payment....grrrr...

i'll read that link and go from there.......

there has to be some middle ground where it reduces liability on both ends of the order.......

i know just in my other line of work (architecture models)...i dont lift a finger until a deposit/contract is signed and then payment on delivery........ thats just me though......

(if my typing seems harsh...it isnt..i just like to be upfront)....maybe i'll scale the font size down..hehehe

b

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Jasonda

Quote: Originally Posted by 237am i know just in my other line of work (architecture models)...i dont lift a finger until a deposit/contract is signed and then payment on delivery........ thats just me though......

That's very common in a lot of industries. The thing that really makes a difference is that that kind of work is custom. If you were selling custom t-shirts you would be right to demand a deposit, but if you're selling an item that is already made (or that will be made to your specs only, with the only change being quantity) then it doesn't really fit in the same category.

 

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237am

Fashion-Incubator: Net 30 and getting deposits for orders

quick find regarding deposits and how a credit card can reverse funds even after delivery....hence take a check

b

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237am

hmmm..

ok heres a cross arguement....

say i was a local guy selling my little line...... and then a big buyer wants to carry my line in some superstore..... and say i dont have the credit/funds to produce the high quantity on the small funds that i have...... will the buyer work with me or practically push me aside and say forget about it.....

i know it's a make or break deal to push a line...but there has to be some sort of "assistance" that would work out for both parties......

as much as i would like to have $10,000 worth of shirts on hand to sell, that's not an option right now.....

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Comin'OutSwingin

Quote: Originally Posted by 237am c-o-s and jason thanks for the input..... just a little ryled up over the facts i guess...... after spending 2 years trying to push the line local and then looking to get it out of detroit...then i'm dealing with the little things like numbers and payment....grrrr... i'll read that link and go from there....... there has to be some middle ground where it reduces liability on both ends of the order....... i know just in my other line of work (architecture models)...i dont lift a finger until a deposit/contract is signed and then payment on delivery........ thats just me though...... (if my typing seems harsh...it isnt..i just like to be upfront)....maybe i'll scale the font size down..hehehe b

No problem. I understand the frustration, believe me.

One thing that may help would be to look at it from the retailer's point-of-view.

They've never heard of you or your company. But you're wanting them to meet minimums of $1,200 for items that you say you will deliver at a date in the future, and you want payment when they order.

How do they know that you're legitimate?
How do they know that you will actually produce garments?
How do they know that you will ship what they ordered?
How do they know that you didn't just make a fancy catalog, and actually don't have a company?
How do they know that you won't take their $1,200 and they never hear from you again?
(on a side note, probably another good reason for lower minimums)

See the problem?

If it were just as easy as make a nice catalog, take orders, get paid, then use that money to produce what was ordered there would probably be lots more success stories than failures.

The fact is that it's not that easy. You've got to prove yourself. Part of that proof is convincing them that you know what you're doing.

Expecting them to pay for an order before you ship it is only proving that you don't know how it works, and many retailers will avoid you like the plague. They've already got plenty of proven lines and don't have to worry about the kinds of demands that you're proposing.

They don't have time for a new brand, with their new requirements.

They just won't order.

So, even if you need to scale back your offering a little bit, try to at least get to a point where you can pay for the production of an order before you ship it.

Then be able to charge the amount to a credit card, or factor the invoice.

But, as it currently stands, I think you're going to have a very tough time trying to make it work the way you want it to work.

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nution

This could sound a bit over the top and complicated, but if you offer a discount off the wholesale price, you could get some deposits. It was mentioned in that article you linked. This might not be the same as proposed but heres the idea.

Figure your cost to actually get the shirts made. Like a per shirt basis. Lets also assume your only selling one shirt, just for the sake of example, it will be easier to find the discount amount.

Say it costs you $6.00 to make one shirt. And you wholesaling it for $12.00 . Taking 1/2 your cost as a deposit you would get $3.00 upfront and that would help to make the shirts.

In this scenario you could offer an option to save 10% on the total order, if they put down a 25% deposit towards the order. Making it mandatory would scare people off, but as an option, I think serious businesses would see that as an advantage. I personally would take that option if I was serious about buying your product as it would save me 10% which means my potential for profit goes up and in turn my risk goes down slightly.

You wont make as much, but 10% isn't bad. You could even factor in that only 1/4 of the buyers would take that option and up your prices according to that estimate. They wont know the difference and you end up making the same amount with less risk.

Just an idea.

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Jasonda

Quote: Originally Posted by 237am say i was a local guy selling my little line...... and then a big buyer wants to carry my line in some superstore..... and say i dont have the credit/funds to produce the high quantity on the small funds that i have...... will the buyer work with me or practically push me aside and say forget about it..... i know it's a make or break deal to push a line...but there has to be some sort of "assistance" that would work out for both parties......

If you say you don't have the funds, you won't get the order. They will not "work with you". It's probable that they will laugh politely and show you the door.

In fact, big retailers like department stores are notorious for pushing you to give them a price break and they will not pay by credit card, they will insist on getting terms (and then paying later than the terms allow).

If you can't afford to produce an order, you can apply for credit from your bank or loans from your friends (if you have a signed order). This is also where a business line of credit can come in handy.

But the bottom line is, you don't take orders that you can't afford to produce.

These articles from Kathleen are very helpful on the subject:

Fashion-Incubator: Establishing payment terms

Fashion-Incubator: Factoring invoices: Financing a fashion line

 

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DREAMGLASS

I think what Greg and Jasonda are trying to get across, is that it is the retailers that dictate the terms of trading, not the other way around. The retailers are the ones doing you the favour by stocking your items. If they don't sell, they're the ones stuck with your merchandise.

 

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nution

Quote: Originally Posted by DREAMGLASS I think what Greg and Jasonda are trying to get across, is that it is the retailers that dictate the terms of trading, not the other way around. The retailers are the ones doing you the favour by stocking your items. If they don't sell, they're the ones stuck with your merchandise.

Very true. They are taking a decent risk as well. Both sides are risking their own $$$ on any deal so asking to much will just heighten that risk, in turn scaring everyone away.

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Teeser

Can you get credit terms from your printer?

 

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237am

well i guess i'm way over my head then.....

i'll have to push my ideas with my fullfillment company and just hustle myself then...... because on the looks of it...... it seems like its a cut throat industry........

thanks for the feedback.... i think i'll just put this on the backburner for a while......


b

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