Would love to know:
Anyone have any real experience with retailers? Whether it be through consignment or actually having them buy your pieces.
For consignment, how much did they say they want?
For retail, how many did they on average buy from you?
Im talking to a few stores and both of those options are on the table.
Thanks.
when a store buys your stuff up front , its usually at the wholesale price that you set.most brands like to keep the wholesale price consistent to the market ( which is about $14-15). The store then sells your stuff for retail....which is usually double what they paid for it. ($28-30)
in regards to minimums, you never want to set minimums for stores that are willing to buy upfront!...whether they only want 20 tees (just to try out the brand) or 150 tees....if the store is paying up front (paypal, COD).... make the sale!
Consignment is ok....if you have inventory, its nothing wrong with having in a few shops for consignment. But i like to control the inventory....( i dont set limits upfront, but if a store places an order that i don't like, i negotiate) You don't want alot of inventory tied up in consignment, when you can be moving it in other places. the money split is usually 50-50 of the retail price.
Alot of stores like to do "Term payments"...this is a pain in the ass. its referred to as Net-30, or Net-60..or whatever.
this means that you ship the order, and the store pays you in 30, or 60 days...or whatever terms you agree to. You will find yourself chasing down a store for a payment wayyyyyy after the term is up.
you have to find the right balance of accounts...you need some that will pay up front so you can keep things moving, but you dont want to turn down a really good account just because they want to do consignment or net 30.
managing the accounts is whole other side of this biz that should not be overlooked! Keep in constant contact, be upfront about payment request, but don't be a jerk. (with some stores, you will get used to being paid late....but they always pay...and always keep ordering,so you gotta deal wit it.)
