Odd Sizes can be a Good Thing

When you are purchasing wholesale clothing you have to realize that the odd sizes can be a very good thing. First of all odd sizes can be purchased really cheap and you can sell them at a huge markup. The reason for these cheap prices on odd size clothing is that retailers will avoid them because they can be hard to sell. For this reason, clothing wholesalers will sometimes offer you some great deals.

The fact of the matter is that people are all built differently and they are all shapes and sizes. When someone is an odd size they have a hard time finding clothing that will fit. If you purchase odd sizes you will quickly see that these people are more than willing to pay top dollar for something that will fit. So never overlook odd sizes because you are afraid that they won’t sell.

Get Good Quality Clothing

If you are in the business of selling clothes then you do not want the reputation of selling cheap low quality items. Buy clothes that are only of the highest quality. Buy clothing that is the real thing. If it is a leather jacket you are selling, make sure it is genuine leather. A plastic looking leather coat looks bad and it is uncomfortable. People not only want to look good in their clothes, but they also want to feel comfortable with what they are wearing.

Cross Sell, Cross Sell, Cross Sell

You probably want to put a lot of concentration on women’s clothing, but it is still a good idea to throw in some men’s and children’s clothing as well. For the most part, the women who buy your wholesale clothing are also wives and mothers. In order to get the most from your business, you have to offer clothing that can be cross sold. Offer a few men’s shirts as well as boy’s and girl’s clothing in your product line and you will see your profits soar.

Often times people will go into the wholesale clothing business with no idea what direction they should take. Follow these suggestions and get the most you can out of your business.

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Well hopefully you don’t have one single supplier! If one of your major suppliers does in fact notify you that they are closing their doors, there’s no need to panic. Simply contact your other supplier(s) and speak with them about the possibility of you moving more business their way. Determine if they can handle the new demand and talk about pricing options with them (as they may offer a discount for more business). Also remember to contact the supplier that is going out of business and ask if they have any products that they can still supply you. If they do, you might be able to get a "going out of business" price on the items.

In the event that you have paid for items that have yet to be shipped when the notification of the closing comes, DEFINITELY contact the supplier to figure out if you will be receiving the products you paid for. If not, ask about taking other products up to the equivalent value you’ve already paid. You may have to enter into court proceedings but this of course is highly undesirable as it will likely cost you more to hire a lawyer and pay court fees. Try to work something out directly with the supplier but if this does not work, make sure you consult a lawyer for further action.

The best way to avoid any of this is to pay attention to clues that might indicate the supplier is in trouble. Some of these include:

*Difficulty in reaching the supplier by phone or email.

*Repeated lag in shipping timeliness and lack of product.

*Employees begin to quit and/or ask if your company is hiring.

The best plan is to always have back up suppliers. This will save you a fortune in time and money in the event that one of your major suppliers does indeed go out of business.

Going into a retail business for yourself means taking risks with your money and your future. Not only do you have to worry about finding customers and keeping positive cash flow, you have to keep a steady supply of merchandise. This means finding a reliable supplier or distributor. But with just as many fraudulent or overpriced suppliers as there are legitimate distributors, committing to a supplier can be a scary thing.

Good business sense can help you avoid many of the scams out there, but there is no way to avoid them all. Fortunately, a scammer’s charade is never impervious. By using the following tips, you can avoid everything but a skim across the surface of a bad business experience.

Just because it looks like a duck and sounds like a duck… There are many companies out there who claim to be wholesale distributors, when in fact they are drop shippers who buy their products from wholesalers and mark them up before selling them to you. This not only costs you money at the purchase, it costs you future profit potential, since you will have to raise the price of the product yourself to make any kind of profit. One thing you can do is to take note of the variety of products a supplier sells. Distributors that sell many different items rather than specializing in certain products might just be drop shippers.

Some things in life are still free… If you’re just starting to work with a distributor, they may require a small set-up fee or a minimum purchase to get started. However, this is the exception, not the rule. If a distributor tries to charge a subscription fee, add-on fees or per-item fees, ask them to explain the charges and plan to move on to another company.

No name, no number, no service… A legitimate business isn’t afraid to attach its name and contact information to its web pages, so if the supplier you’re looking at doesn’t have a contact number and address, tread carefully. Anyone can invent an email address and start a website, and you should be able to gather enough information from a supplier’s website to do the proper background research on them. When you do order product, your supplier should ask for your tax ID number.

Let your fingers do the walking–um, typing… In today’s information age, legitimate companies are easy to find. Even start-up companies will have a trace of information somewhere online. The Better Business Bureau maintains information on thousands of companies, and their website is easy to use. Whois.net is a great place to research a business website. Just by typing in the domain name, WhoIs will tell you if the site is registered under a company or an individual. If you see a person’s name as the registrant, you might be dealing with a middleman.

Sales Pitch 101: Your supplier shouldn’t be trying to sell you products. If you visit a distributor’s website and it includes a sales pitch, you’re probably dealing with a middleman. That isn’t to say that distributors won’t have any kind of marketing on their site, but they don’t have a need for aggressive sales techniques. On the same note, your supplier shouldn’t be trying to sell you other services. At the very least, this indicates that he or she is a dabbler and might not be around long.

Hello, Smith residence… If you really want to find out the legitimacy of a potential supplier, call their business number. If someone answers the phone with a simple “hello,” hang up. Although many acceptable businesses are run from a home office, there should still be some kind of indication that it is a place of business. While not all companies can afford a receptionist, they will at least answer the phone with the name of their company.

If all else fails, contact the manufacturers of the products that you plan to sell and ask them who their authorized distributors are. They may suggest some strategies for selling and point you in the direction of their best suppliers.

Getting better prices on products

There are a few tactics you can use to lower your current wholesale pricing. The first is using an increased order quantity to get a discount. Let your suppliers know that you are willing in increase your standard order size in exchange for a discount in price. If you feel comfortable, you may want to give a reasonable discount percentage as a starting point, say 10 percent.

The second price-lowering tactic includes using your vendors’ competition as leverage; you’ll need to do a little bit of research for this one. Let’s say you have been successfully selling a certain brand of dog squeaky toys. Your customers know the brand name and like the quality of the items. However, there are a ton of manufacturers making squeaky toys for dogs. Get wholesale pricing from the other manufacturers and compare their prices to what you are paying. Show your supplier the competitors’ pricing and ask them to match the prices. If they are unable to match, then ask them to give your their best pricing that comes close.

Getting better payment terms

If you’ve been paying your supplier upfront with a credit card, chances are you can get net 30 terms. If you have net 30 terms, why not try for net 45 or net 60? Getting extended payment terms gives you more flexibility with your cash – you can even use it to increase your order quantities in order to get pricing discounts. This is one of the simplest terms to negotiate because most times it simply requires asking your vendor to increase your payment terms. If your company has a history with them and you’ve always paid on time, there’s no good reason why they wouldn’t extend your payment terms – especially if it translates into a larger order for them.

Getting better shipping prices

Take a look at your vendors’ invoices; if they’re charging you shipping fees then it’s time to talk with them about getting free shipping or at least sharing the shipping costs 50-50. First, do some research on other suppliers in the industry and see if they charge shipping fees to their retailers. If not, you can point this out to your vendors and ask them to match their competitors’ free shipping policy. If they refuse to budge, then see if they will agree to split the shipping costs with you instead. The next step will be for you to offer to increase your order amount in exchange for free shipping.

The key to negotiating with your vendors is by starting off by offering the terms most advantageous to you and then working your way down. Give each one of your suppliers a call and try to renegotiate your pricing and terms, one at a time. You’ll be surprised at how much you end up saving!

Unfortunately, when you contact the wholesale distributor that you would like to use they ask for your Tax ID number. So, you start looking for one that is not going to ask you for that number, since you do not really want to become a legal business. You find a wholesale distributor that provides what you are looking for without having to have a Tax ID number. Much to your dismay, you are barely breaking even and only to find out that this wholesale distributor is actually the middleman for another wholesale distributor-the one who asked you for the Tax ID number.

There are two things to remember when you are establishing your business. First, you must become a legal business in order to work directly with a real wholesale distributor. This means getting a Tax ID and working only with those suppliers that require this in order to purchase from them. Second, you must work only with a real wholesale distributor in order to be successful in your business.

You have gotten your business license and are now a legal entity. Your website is established and you are ready to start selling. Now you need to contract with real wholesale distributors. When you are sending out emails to these companies to become a retailer with their organization, it is important to remember NOT to send out a mass email.

First, you need to determine what type of products you are going to be selling on your website. You may be sending an email to a wholesale distributor for products that you do not intend on selling. Second, setting up a wholesale account is free to you, but time and money to the wholesale distributor. They want to know that you are serious about your business and will be utilizing the account. Once you have determined the wholesale distributors you want to do business with, and if you just want to send out one email requesting to set up an account, ensure that the ‘To’ line is only to them and not 200 other wholesale distributors, or use the “BCC” line. This will give the wholesale distributor the perception you are a serious business owner.

Make sure that you do your homework to learn who the leading manufacturers are in the industry and who their biggest customers are. You want to make a positive first impression and be professional in your communications, both written and verbal.

There are some processes that are very simple with only a couple of different suppliers. There are other processes that are extremely complex that require several suppliers, where a solid supply chain management system is imperative to the success of the product. It is important that all suppliers are knowledgeable about all aspects of the supply chain.

Supply chains can be strong, but are usually as strong as its weakest link. The most successful supply chain management for any company must be supported by top management’s commitment-top down. No matter what the size of the company, it is imperative that people in key positions understand the whole process and how all pieces of the supply chain are affected, not just within their own organization. In essence, it requires cooperation from all aspects of the supply chain in order to be successful.

There may be instances where you would need to be more involved in the supply chain, such as when there are some outsourced functions that are part of the supply chain. An example of this would be if you are using an overseas supplier where there are longer lead times and a higher probability for disruptions. Good supply chain management is critical where timing can disrupt or break the chain. Having a back up plan that is a legitimate option in a time of crisis is imperative. Usually a supplier would like to have some volume with you and you can diversify your suppliers enough to have some flexibility if the situation demands it.

Additionally, when you are working with different suppliers who make up the supply chain, establishing efficient communication of information is imperative. Having efficient communication will not only help to ensure that there are no disruptions in the chain, but that compatible communication is established. Specifically, ensuring that the technology is up-to-date is important, by all suppliers involved.

Implementing an effective supply chain management system will join the links of the chain, together with compatible information technology and making sure that all the suppliers are knowledgeable about the process. Moreover, the suppliers who are quick to respond, with reliable and quality products or services, are the ones who will get the business.

There are two very critical steps you need to take right away. First, get a hold of your alternate supplier for the product and let them know you are going to be moving some more business their way. Don’t be desperate, just talk about if they can meet your demand, what type of pricing you will get, etc. Second, get in contact with the supplier who is going out of business and find out what they will still be able to provide (if anything) to you.

If you have paid for product that hasn’t shipped, things will get a little dicey. If the supplier you were dealing with was a sole proprietorship or a partnership, it will remain liable to you for outstanding product. The best way to deal with this is to negotiate with them. You can consider suing for compensation, but if the company has filed for bankruptcy, getting any money will be difficult.

You best bet is to try to get the product you have paid for or something equivalent in value. Plus, is it really worth losing more money through the court system for someone who will not be able to pay you anyway? Check with an attorney about your options and realistic probability of recouping any monies prior to starting legal action.

Signs Your Supplier May Be in Trouble

* Marked drop off in response time to calls or emails
* Long hold times when you call (indicates a staffing issue or lots of problem calls)
* Key employees you may be used to dealing with have quit the company
* Key employees begin asking if you are hiring or know somebody who is
* Nagging supply issues, missing shipping dates, lack of product
* Lack of communication (except when asking you for money)

How to Avoid this Situation in the Future

The best way to deal with a supplier going out of business is to pay attention to the clues ahead of time and move your product orders over to another supplier before they go under. While this is easy to say, it is difficult to put into practice. Good suppliers you have good relationships with can become friends and although having business relationships is important, remember it is business.

You can’t ignore the signs of a company’s impending collapse. While growing companies will face many of these same issues, you will see the growing company dealing with problems and telling you the growth is the reason for the challenges.

Having alternate suppliers is always a good idea, and you will be glad you took the time to have a back up plan and a little business diversified in case your main supplier goes in a different direction.

One of the best ways to do this is to source locally. This works on two levels as well – not only is it a great way to reduce your carbon footprint, it also enables you to support other local businesses. And the flip side to that is that they can then offer you their support, making it a win-win situation all around.

Because you’re cutting down on the amount of physical miles your products need to travel when you source locally, the vehicle emissions will obviously be a lot lower than traveling to a different state or county. And it’s not only you that will benefit from this – sourcing locally will also mean you don’t have suppliers adding even more carbon fumes to the atmosphere.

After all, although a supplier might not be classed as part of your company, you’re still indirectly involved in their pollution, since you’re the recipient of one of their deliveries. So what are the best ways to source locally?

There are many ways to help you source whatever you need locally, and you may actually be surprised by the ease in which you can do this. Some of the best ways include:

* Use your local directory. If you’re a business that needs specialized products or services, you may indeed need out-of-area help. However, there may be a local company that you’re unaware of that can provide you with what you need.
* Arrange or attend a local business network meeting. Again you might be surprised by what’s actually on offer in your community. And you’ll be getting your own name out there at the same time.
* Ask existing local suppliers if they can recommend anyone’s services.

There’s another good reason to source locally to help reduce your carbon footprint. Because the environment is obviously such a big political issue, parties are using it as voting power. Part of their promises is that they will come down strong on companies who don’t meet the required level of green awareness.

Therefore, if you don’t meet these requirements, you could find yourself with a large fine, or in the worst-case scenario, have your business license suspended until you come up to scratch. So now might be the right time to start seeing what’s in your local area supplier-wise – it could save you more than you think.

If you have been the victim of one of these scammers, you may feel there is nothing you can do. You may also think that the person who took advantage of you – and took your money – is long gone. But the truth is that you can take a stand against what happened, and possibly help the authorities keep it from happening to someone else.

How to Find Out About the Company That Scammed You

Many scam companies are hard to trace. They operate in one location for a while, run a number of scams, and then take off. But in order to get money out of businesses, they often leave a paper trail of some sort.

Look for anything that the scammers sent you. Were you sent a false invoice? If they called your office, get a copy of your phone records to see where the call originated. If they have taken your money, did you pay by check or credit card? If you paid by check, look up the person, or company name that the check was made out to.

If you paid by credit card, look on your statement to see where the money went. You may also be able to call your credit card company for help in finding more information about the destination of your payment.

Where to Report the Company

Unless you tell the authorities what happened, they can’t help you. Once you realize you have been scammed, call your local law enforcement agencies, your State Attorney General, National Consumers League (www.fraud.org ) and the Better Business Bureau (www.bbb.org ). It is likely that these organizations will start an investigation into the situation.

The more information you can give them about your encounter(s) with the scammers, the better a lead they will get on the case. Additionally, if you are not the first to report this scam, they may be able to give you more information about those behind it.

What Recourse Do You Have To Recover Your Money?

This will differ by case. If you paid the scammers by credit card, you should immediately call your credit card company and tell them about the scam. Many credit card companies will reverse the charge or help you reclaim your money.

If you wrote a check, you should tell your bank about the scam and ask if there is any recourse they can help you in taking against the perpetrator. Finally, keep up with the scam investigation. Once the authorities catch the scammers, you may be able to get your money back in an ensuing lawsuit.

The number of reported business scams has increased in recent years, and trends suggest that the numbers will continue to rise. The best defense is to be on the offense, and not trust any business deals that seem too good to be true. Thoroughly research your suppliers before working with them – you’ll save money and your sanity.

But how do you go about finding a wholesale supplier?

It’s important to know that not all wholesalers will work with everyone. Some are only regional or only work with retailers of particular size. With that said, you may also want to be picky about which wholesalers you use. The further a wholesaler is from you, the more you are going to have to pay to have items shipped to you. This is compounded if you have larger or heavy items.

The two biggest benefits to working with local wholesalers are price and reliability. Let’s take a closer look at each of these benefits, and find out what it takes to find a reliable local wholesale supplier.

Price

The retail business is always a battle over who has the best prices. The one who wins the war is the one who has the lower prices – and the service to back them up. The closer your suppliers are to your business, the less cost you’ll incur – and the more value you can pass on to you your customers.

Reliability

What good is having the lowest prices if you run out of products and your wholesaler takes too long to get more to you? You need to make sure there is a clear-cut delivery expectation between you and the wholesaler that you are working with. If you expect your product turnover to be high, then your suppliers should be able to keep up with your inventory needs. If they are located closer to your business, they may not take as long to deliver products.

Finding a Local Wholesaler

As you begin your search, you should start by letting your fingers do the walking. Often the Yellow Pages or regional and local trade publications will have ads or listings of local wholesalers may be selling the items you are looking for. If you are not a member of trade industry groups that represent the items you are selling, you should sign up, or at least subscribe to their publications. You may also want to check with your local chamber of commerce for wholesalers in your area.

If you don’t have much success there or your results are limited, turn to the Internet. You can try using search using terms such as ‘wholesaler’, ‘wholesale supplier’, the items you are looking for, and the town or city you live in or are closest to. However, using this approach can be time consuming; unfortunately, many businesses have filled their sites with keywords just to get results, and may not really be offering what you want. So if you use this method, you’ll have to exercise some patience.

You can also use the information you already have available. If you see an item in the store that is the type of item you are looking to sell, look more closely at the packaging. It may well have the distributor’s information, and even a web address, printed on it. This is the quick way to the top of the food chain.

Before you strike a deal with a wholesaler, make sure to have all the information you need to know this is an economically sound decision. Find out their minimum orders (some are a few hundred dollars, others insist on sales in the thousands), time for delivery and the cost of shipping so you know exactly what the final price will be and that it is a sound investment for you. It can’t be stressed enough – always research your wholesale suppliers !