One of the key features of business is to buy low and sell high. The retail clothing business is no different. If you want to start your own clothing business, buying from a wholesaler is the best way to buy merchandise at the lowest price, so that you can add your markup and sell goods to make a profit. Buying wholesale is not difficult, but finding the right wholesaler is.
Here is the list of all the points you need to understand before you start your own clothing business
Do the Business and Legal Work First
Before you start doing business, first you need to make sure that you are legally allowed to do business in your area. Secure all the permits and licenses required to run a business. For example, you might need a state and city business license to open your store. Insurance is also necessary because it protects your business in the event there is a problem.
The next step is to find a suitable location for your business. You don’t want to open your store in the ritziest location. Also, you want your store to be clean and welcoming to potential customers. You need to make a marketing plan so that you can create awareness about your business in the area.
Determine Your Clothing Niche
Before searching for a wholesaler, decide who your target will be. If you want to target women's clothing, then you need to find wholesale women's clothing supplier. If you don’t have any preference, then take some to survey the area and find which group is under-served.
If you find that the men's clothing has a high scope and there is less competition, you should start by selling men's clothing.
Find Wholesalers Online
Once you have the business plan, required permits, and target audience, it is time to begin searching for a wholesaler. Finding a wholesaler that is right for your business is the toughest part, you need to choose because you will be investing time and money in finding a wholesaler.
There two ways to locate a wholesaler. The first option is to find the website of companies that represent multiple clothing brands. The other is to visit the website of a brand you want to sell. You can easily find information on wholesale on the website. Though you won't be able to find enough information, use the website to contact the brand or wholesaler.
In most cases, you can contact a wholesaler using the email address given on the website, or you can use the phone number to call them directly. The application process may be straightforward, though the wholesaler of more elite brands makes it difficult for you to qualify especially if your business is new.
You might need to provide proof that you are operating an authentic business. This proof usually includes a copy of your business license, your permits, and copies of invoices from other wholesalers. Make sure you ask the terms including the price and rules before you sign a deal with them.
Developing Supplier Relationships
Developing a strong bond with wholesale suppliers is essential to the success of your business. When you work with a wholesale representative, you will most likely enjoy the preferred pricing, access to in-demand merchandise, and payment terms. You must be respectful of your representative’s time, pay an invoice by due dates, and approach your rep about concerns before it becomes a big problem.
Other Inventory Options
Get offline and visit industry trade shows. The advantage of going to a trade show is that you will be able to meet representatives in person and inspect the merchandise samples before making an order.
Purchase inventory from stores that are out of business or that are getting rid of their merchandise. While these items are no longer in trend, they still represent a significant profit center for your business. Your customers will appreciate you for getting a good deal and you will be able to offer an extensive range of merchandise at low prices.
Find liquidation jobber
Liquidation companies buy unsold goods from major stores and catalog retailers, bundle them into lots and sell it to the retailers. While you don’t have the option of selecting each piece of merchandise, it is possible to purchase clothes made by top brands in pennies. The better liquidation also shows you exactly what is in the lot before you make a purchase. Many liquidation companies operate and buy goods online.
Starting your own business is not easy, especially the clothing business, which is one of the highly competitive ones. But if you are aware of the know-how, you will be able to find a good wholesaler in no time.