Wholesale is a frequently used term in the retail industry, but what exactly does it mean? “wholesale” refers to the “sale of goods in large quantities for resale by others.” While purchasing your retail brand’s apparel inventory from wholesale vendors may be appealing – especially for boutique shop owners who do not want to design the clothes they sell – doing so has drawbacks.
Here are five things that most clothing wholesalers will not tell you.
Factory Prices for Apparel Are Lower Than Wholesale Prices
If you work directly with a fashion manufacturer, your price per unit product like Christmas dress mommy and me will be lower than buying wholesale. This is due to the fact that wholesale vendors must recoup their initial investment in purchasing your products from the factories that manufactured them. They accomplish this by charging you a higher price per unit than their factory price. Some wholesale vendors charge fashion retailers up to twice the factory cost.
White label sourcing offers more advantages than wholesale sourcing.
Many boutique owners see wholesale inventory sourcing to avoid designing their clothes. On the other hand, boutique stores that source white label factory designs can achieve the same result at a lower cost and with more room for customization.
The Drawbacks of Selling Pre-Existing Clothing Products
Buying pre-established products is perhaps the most appealing aspect of buying wholesale. This appears to reduce the risk associated with purchasing inventory. While this can be advantageous, it can also be detrimental. Other retailers, like you, buy these items from the wholesale vendor. When multiple retailers offer the same product, attracting customers becomes difficult unless the sales price is reduced.
Not Every Wholesaler Is Trustworthy
Many brands keep their wholesale under wraps so that their competitors don’t find them and sell the same clothes at a lower price. It would be ideal if everyone followed this advice, but this is not the case. A few people will look for ways to locate a brand’s wholesale vendor and use that information. Working with wholesale can be risky in this regard.
In wholesale fashion, you have less control.
You have less control over your brand, price, quality, and quantity when you source wholesale fashion products like Christmas dress mother and daughter. Working directly with a clothing manufacturer, on the other hand, allows you to create your brand. The ability to create your brand entails the ability to set the prices for your products. Low prices for competing will be a thing of the past.
Manufacturing your product, as opposed to sourcing wholesale apparel, allows you to control the quality of your final product. Clothing factories follow general guidelines when it comes to defective products. On the other hand, quality assurance is more of a luxury than a necessity in wholesale.