Clothing is one of the essential needs for any person. Stores that sell clothing determine their sector of the market. Either you sell designer clothes at very expensive prices, or you can sell in quantity for a low price. Of course, there are grey areas between these two extremes. In order to sell cheap, you must be able to buy even cheaper, and one of the best ways to achieve that is to buy wholesale.
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Make a budget. Before deciding anything, you need to have an approximate knowledge of how much money you have available to invest. Check bank accounts and profits from past sales, and determine how much money you can spend on this specific purchase. The budget should signal all the money you have, how much you can get and how much you want to spend. If there are any stockholders or investors, they should also review your budget.
Study the market. Locate as many wholesalers as you can find. You can find them in the yellow pages. Another good source is visiting Alibaba.com, which has a wide range of wholesalers around the world. You can also ask fellow stores to give you some contact information, although this could be tricky due to the fact some competitors are not keen in sharing their sources. Lastly, you can see the Resources section for examples. Talk to them, inform them of your needs, and get a proposal from them. Find which provider best fits your needs, including shipping, costs, time frame, availability and reliability.
Try to reach the best agreement possible. That is, a low starting price, short delivery timeframes and their best shipping policy. If they turn out to be good wholesalers, then you'll want to keep working with them. Be aware that the terms that have been settled at first will, almost always, be carried on for as long as you continue your business relationship with them.
Coordinate a down payment, usually 50 per cent of the total amount and the rest shall be paid at delivery. Before paying, make sure a contract is signed, and when the shipment arrives, you should inspect every package for tears, rips, holes or other imperfections. If you find anything that is out of the ordinary, withhold payment until the problem is solved.
Tips and warnings
- Always buy in bulk. The more you buy, the cheaper it is. So, if you have many orders to place, you may consider placing just one big order to get a better price.
- Try to have your lawyer present when signing the contract, as any problems that will require legal intervention will be better solved if your attorney was present. If that isn't be possible, fax/e-mail her a copy of the contract and have her review it before signing anything.
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