I'm going into the Children's Dress Business and need advice on how business is done in the clothing industry.

Question

My wife is an extremely talented fashion designer (in high fashion). I am adept at selling and plan on selling higher end dresses ($40.00 retail and upwards) to smaller stores and chains (I prefer not to deal with the larger chains at this time nor do I want to compete with China). There are some things I know nothing about in this industry. They are:

1. Sales timing vs. seasonality of clothing items and how that selling opportunity window may vary with the size of the store or chain doing the buying. ie when do stores want summer items to arrive, etc. When do they quit receiving summer items? Winter items? Other special seasons?

2. What percent of manufacturer list do stores expect to pay. How does that vary by store size or item type?

3. What kind of return policy (to manufacturer), if any, do stores expect upon purchase.

4. Is there anything I should know about packing clothing for shipment?

5. Anything else I should know that I didn't know to ask here?

Answer 1

Good Luck,
1.the smaller the store ,the closer to season they usually bring items in.they aren't warehousing for one.other larger stores,chains etc can bring christmas stuff to sell in june if they want ,,,only based on the sheer MASS of people they get.They usually opt 3 months before the peak of the season to get top dollar and sell most if not all the merchandise.Keep in mind that the BIG stores buy their swimsuits while it is snowing and vise versa.you can sell seasonal merchandise to the mom and pop store 3 days before they plan on selling it.each store/chain has their own policy so keep tabs on that because you might have the BEST design at the BEST price on a summer dress but yesterday they finished their budget for that quarter.
2.the store expects to make a profitjust as you do.if they are going to sell 4 of your dresses a week, that wont even pay their electric at 20% whereas a small chain might make out well at 15% because they sell 4 dresses at x amount of stores and always have a lower overhead/sales ratio.Wilmart might expect to make 6%,if you lower your price 20% and prove your not making more per dress than they are.,,,or anything at all!!
some smaller stores want to make 30-40% profit on cost,so you may have to sell at that price until you can MAKE THEM WANT YOUR ITEMS.
3.again,varies by store type.bigger stores love clearance no matter what they tell you.gets people to part with their money which they otherwise wouldn't.you can usually expect big stores to sell your stuff one way or another because they don't want to classify it under unsold items. BUYERS get dumped for that.Smaller stores will probably want to return some product ,usually up to 10% average last 3 months purchases.sometimes more. figure that into your price.your going to have 20%more man hours 10% out and 10% back in.you sell them 10 dresses,they sell 9 and return 1.you handled 11 dresses to sell 9.if its 5 dresses and 1 return ..ouch.at least your wife will be well dressed.
all stores are going to expect some leeway for "defective" items. no matter how many times YOU inspect it before shipping.If their customer"s cat tears something....do you like cats???
4.basically how your item is packed is how they see your company.don't over do it,,,just be professional.This will be their second impression.
5. you probably know this but get a good attorney,,,one who knows business...preferably your industry. dont get one that does divorces and property settlements.,,or worse yet a criminal attorney. you biz will be sooooo far in the back of their mind that..........what did you want.
Get a good ...NO....a great accountant. this is tricky because they all know more than we do so it sounds good no matter what they say. go on word of mouth if you can.This can cost much more than you want to spend but a really good one can save you thousands ......a year,month or week .,,,depending on how large you get.Having one that has a buddy that works for any revenue dept is a bonus.They all went to school somewhere.Also.dont ever piss the accountant off.He will still do his job but not going out of his way.No calls to the buddy for you.
Last but not least....I think you are freakin crazy but go for it anyway...........I DID.
GOOD LUCK!!!!

Answer 2

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Answer 3

i think of it relies upon on what your theory of "fashion designer" is. finding on the D&G internet site, i think of that a pair of pants for a toddler that fee over $3 hundred is intense. My boyfriend and that i might desire to have sufficient funds to gown in that style of stuff, yet we don't see the factor. All of our outfits come from previous military, the hollow, and shops in that funds. nonetheless greater suitable than i prefer to spend, yet i individually can no longer positioned on Walmart outfits using in great condition. maximum of my toddler outfits are from previous military and the hollow. i do no longer evaluate that to be "fashion designer" yet curiously some human beings do. i think that i do no longer comprehend spending greater suitable than around $40 on a pair of pants for an older toddler, or $30 for a shirt, etc. i does no longer do it myself the two. I do prefer to look sturdy, yet i do no longer might desire to be on the reducing fringe of vogue to sense that I do.