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WHOLESALE OPTIONS
IN-HOUSE REPS
Pro’s: All of the attention is on your band.
Con’s: Samller network of buyers. Fixed overheads which may be paid in a combination of a fixed wage and commission.
PHYSICAL AGENCIES
Pro’s: Wide network of buyers. Added exposure. Professional showroom. No fixed overheads as agencies are paid a commission on paid invoices only, which is generally 10-15% on W/S prices.
Con’s: Attention to your brand will not be exclusive.
VIRTUAL AGENCY
Much the same as a physical agency, however, the audience may be larger / worldwide and made convenient for W/S online ordering for approved buyers. Some great wholesale platforms are:
DISTRIBUTOR
All the same as an agency except they will pay 100% upfront on orders on behalf of their buyers which reduces risk and helps cashflow for the brand, however, their commission rate is higher than a standard agency, often around 25-35% on W/S prices.
TRADE SHOWS & FASHION SHOWS
Pro’s: A great way for buyers to discover new brands and to meet the designer (if present), which strengthens the business relationships. Added exposure by the event marketing. Access to a large audience. Opportunity to collect large volume orders in a short time. Opportunity to schedule bookings with existing and new buyers as well as catch walk-bys.
Con’s: A showroom booth can be costly, especially for the high traffic locations (usually around $6000 + furniture hire for 2 – 3 day events ), and though you can potentially collect large orders, you may also risk not getting any. Preparation is key, schedule as many appointments as possible and look at ways to direct traffic to your booth if you are not in a high traffic area.
HOT TIP
Generally, stores are given exclusivity rights to stock a brand by the postcode or shopping area. In exchange of the exclusivity rights, you should request a minimum order with your terms to ensure your brand is properly presented in their store. The minimum amount per order/season may be between $2000-4000. Feel free to use our editable W’S T&C and order forms templates via links below.
INITIAL QUOTATION
Product quotes are calculated with at least 80% accuracy based on tech packs. The more precise and detailed the information you provide, the more accurate the quote will be. We also need to know your target price and intended bulk order QTY per style/colour as this will impact costing. Please use provided PO
LEAD TIME & COST FOR QUOTATION
Lead time for quotes is generally 7 working days. In order for a quote to be calculated, you will be required to provide a tech pack with the requirements as outlined below.
APPROVAL OF QUOTE BEFORE SAMPLING
Product quote approval is required before sampling can commence. This is to allow Clients the opportunity to work out if bulk production is financially feasible. Also because significant time and cost are invested by the Factories in the sample stage, of which much of the cost can only be recouped by bulk order and ongoing business.
As part of your Project Package, you will have two pricing & budget meetings to help you make calculated decisions before you move to further investments.
Our budgets are prepared in either AUD or USD currency.
Based on your F.O.B manufacturer quote, we will calculate your;
- Landed cost (inclusive of import and taxes and currency exchanges)
- Wholesale and Retail pricing.
- Total landed bulk production cost.
Other variable cost associated with your collection such as trims, design and development.
We will calculate your net profit to check that your investment will not only cover the business set-up cost including the sample and production of the first collection, but you may also need enough profit to cover an overlap of investments to another collection to start before the previous has completely sold.
PREPARATION BEFORE YOUR MEETINGS:
- Clients outside of Australia must provide taxes or import charges specific for their country of import in order to account for them in the budget.
- Any cost to be included other than what we have information about must be provided before the meeting so that we can prepare the budget accordingly.
1. ESTIMATED BUDGET:
This meeting will be held in STEP 1 after you have received your factory quotation based on tech packs. These prices are calculated with about 80% accuracy until final samples are made and approved for the final price.
All costs such as products, import, design and development are estimated at this stage, but we work with conservative numbers and we will update everything in the last budget once all samples and final cost except import has occurred.
The purpose of this meeting is to avoid time and cost is spent on sampling designs that are not working with the budget. If anything is not looking finically feasible, we can adjust or remove styles before further investments are made. It is required also from the factory that you pre-approve the quotations before you move into the sampling stage.
2. FINAL PRODUCT PRICES & COLLECTION BUDGET:
Once your samples and final prices are confirmed, we can update the budget with accurate cost. The only estimation left in this budget is import. Fuel charges fluctuate, and we cannot know the exact prices until goods are packed, weighed and measured.
However, as we are working with conservative estimations and extra margins, your budget should leave you with a realistic result before making your final investment going into bulk production.