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I know in the past, when a business sold retail it was a 40% markup (depending on what you're selling). Yet it seems like in the clothing business it's more like 50%+.

I have plans of selling to my local clothing boutiques. Is a 40% wholesale discount insulting? Are they going to expect 50%?

Also, for these types of businesses, are they going to expect to delay payment to me, or can I expect payment up front?
Want to get my ducks in a row and not sound like a total noob before I approach any business..

Thanks :)
 

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Most retail stores will double the wholesale price, which is a 100% markup. So they will expect to purchase your shirts at a 50% discount on your suggested retail price. Your best bet is to establish your wholesale price (roughly double your production cost) and stick with it.

Some boutiques may want you to extend terms. But most will pay upon delivery of the goods. Retail chains will definitely delay payment.
 

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My wholesale prices are from 38% to 60% off my suggested retail.....Stores are free to set their own prices....Most often I just send an invoice and request immediate payment....Mostly local stores.....Most often I have payments within a couple weeks....

I have enough margin to cover the odd loss....Although I think it has been many years since I had my last unpaid invoice...Last year my average selling price (for wholesale) was 49% of retail (51% off) and my average cost to produce was about 46% of my selling price.....

Just so these numbers make some sense.....
Retail - 12.50
Average selling price - 6.13
Average cost - 2.82
Not all my shirts sell for 12.50 each...My range is 12.50 to 17.50....I am in a lower end market catering to locals who want to send a souvenir shirt out of town and to tourists...Mostly 1 colour designs with a few 2 colour ones....

As far as extending terms I think it is a good idea and a "risk" that is worth taking....Especially in a local market as I think most local businesses pay their bills....
 
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