Growing and maintaining a business isn’t always that easy. It comes with many challenges and up and downs throughout. Sometimes selling to other customers directly or opening up a clothing store doesn’t go well for you and doesn’t bring the desired profits. You may want to consider supplying your own products to other stores and retailers and start a wholesale clothing business. Due to the bulk quantities of products involved, you will incur lesser costs and the profits would grow at a better pace than selling to customers.
There are many advantages to starting a wholesale clothing business. Your revenues will grow much faster plus you would not need to advertise your products or business at a huge level as it would be done by the retailers and stores you would be selling to. They will market your products and advertise your business amongst their customers through their own marketing strategies and eventually your wholesale business will grow gradually.
Different prices for different customers
There are two different types of customers. One is the consumers who make direct purchases from you and the second is the retailers who purchase a bulk volume of products from you. You should always place special importance on your retailers and facilitate them at your best because they are the ones who will contribute significantly to your growing revenues.
Prices for retailers should be always lesser than the direct consumers. For instance, if you are selling a pen for $30 directly to your consumers via your social media pages or website, then the price of the same for your retailers should be $15 or $20. They will buy in bulk and you will earn a profit either way. There should be special sales for retailers because they would not be happy if you put out a mega sale for your direct consumers as the retailers would feel at loss that way.
To increase your revenues and grow your business, you shall apply a minimum order rule for your products. It means that retailers and wholesale clothing buyers must order a minimum amount of products in order to successfully place an order. This will earn you profit even by giving discounted prices as they would be buying in bulk.
Advanced wholesale pricing strategy
Some wholesale clothing companies offer a different type of wholesale pricing and now it is getting famous worldwide. It means the more units of products of will order, the price per unit will gradually decrease. For e.g., if the price for 200 units is $20/unit, then the price for 400 units will be $15 and the price for 600 units will be $10. It’s up to you that at which level you want to stop decreasing the price. The strategy here is to attract the retailers in buying larger quantities of products thus increasing the revenues.
You should introduce incentives for your new wholesale clothing retailers. They might be new in business and seeking to make long-term relationships with suppliers so you might consider losing up the terms for your wholesale program. You can exempt them from the minimum order rule and let them buy lesser quantities of products initially to make them regular customers of your business.
But you should not adopt this as a policy as it will impact your business and later on ask the retailers to strictly follow the terms of your wholesale program.
Allow other retailers to sell on your behalf
This type of business or selling strategy is growing much nowadays. It means that there would be no physical stock of your products with retailers. Your customers will buy your products directly from their website and they will buy that product from you and ship it to the customer. It is called a third-party selling arrangement. The prices paid to you for your products might be a little lesser as you didn’t have to market your products for sale and those products are being sold by a third party on your behalf.
This can be a tough arrangement to retain but you can always forecast your profits if you are to adopt this kind of selling settlement. The profits might be low but there is no hassle of advertising and other stuff related to a wholesale clothing business.
Final tips for selling to other wholesale clothing retailers
Starting a wholesale clothing business means you are moving on the bigger platform and can invest your time, efforts, and money in the B2B business as it always gives higher revenues. You might want to consider consulting a local business advisor or do some research on your own as this business has its own challenges and is not always easy to retain and grow. You can interact with other people in this business and avoid mistakes that can cost you both your time and money.