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What to Do When a Retailer Wants to Carry Your Brand

wholesale Jun 24, 2024

 

Congratulations! A retailer has shown interest in carrying your brand, marking a significant milestone in your business journey. This opportunity is a testament to your hard work and the quality of your products. Before you dive into the next steps, take a moment to celebrate. This guide will walk you through the essential steps to prepare for and manage a successful wholesale partnership, ensuring that your brand continues to grow.

Step 1: Assess Your Readiness for Wholesale

Before committing to a wholesale agreement, it's crucial to evaluate your ability to fulfill bulk orders. Consider these key questions:

  • Inventory: Do you have enough stock to meet the retailer's demands?
  • Production Capability: Can you ramp up production quickly if needed?
  • Logistics: Are your supply chain and distribution channels robust enough to handle large shipments?

If you're confident in your ability to meet these requirements, you’re ready to move forward. If not, take steps to address these areas before proceeding.

Step 2: Ensure Product Quality

Quality control is paramount when entering the wholesale market. Retailers expect high-quality products that meet their standards. Here’s what you need to do:

  • Consistent Quality: Ensure every item meets your brand's quality standards.
  • Professional Packaging: Invest in packaging that protects your products and enhances their appeal.
  • Compliance: Ensure your products comply with all relevant safety and regulatory standards.

Step 3: Create a Comprehensive Line Sheet

A detailed line sheet is essential for wholesale transactions. It serves as a catalog of your products and provides crucial details to the retailer.

Key Components of a Line Sheet:
  • Product Images: High-quality photos of each product.
  • Style Numbers: Unique codes for each product.
  • Color Options: Available color variations.
  • Material Details: Fabric content and prints.
  • Size Range: Sizes available for each product.
  • Shipping Window: Estimated timeframe for delivery.
  • Minimum Order Quantity (MOQ): The minimum number of pieces required per style and color.
  • Wholesale and Retail Prices: Clearly defined prices to avoid discrepancies.

For an easy-to-use template, consider the Make Good Fashion line sheet template.

Step 4: Prepare Your Order Form

You’ll need an order form to facilitate the ordering process. While advanced platforms like New Order are available, an Excel sheet can suffice for beginners. Ensure your order form includes:

  • Product Details: Corresponding to the line sheet.
  • Quantity Fields: For buyers to specify order quantities.
  • Automatic Calculations: Total cost and other relevant calculations.

Step 5: Vet the Retail Store

Before proceeding, ensure the retailer aligns with your brand values and target market. Use a business application to gather necessary information:

  • Store Details: Name, address, and website.
  • Brand Alignment: Types of brands they currently carry.
  • Reputation Check: Ensure they have a good payment history and positive reviews.

This step helps you avoid potential issues and ensures a good fit for your brand.

Step 6: Send Line Sheets and Order Forms

After vetting the store, send them your line sheet and order form. Highlight your best-selling products and offer personalized suggestions. This can increase the chances of a successful partnership by ensuring the retailer stocks items likely to perform well.

Step 7: Set Payment Terms

Clear payment terms are crucial to avoid misunderstandings. Here are common options:

  • 100% Pre-Shipment Payment: Ideal if you have inventory ready to ship.
  • 30-70 Payment Terms: A 30% deposit upfront with the remaining 70% due before shipment. This helps fund production and secures the order.

Step 8: Draft Terms and Conditions

Create detailed terms and conditions to protect your business. Include:

  • Return Policies: Conditions for returning defective items.
  • Payment Terms: Payment schedules and methods.
  • Delivery and Shipping: Responsibilities and timelines.
  • Legal Compliance: Adherence to relevant laws and regulations.

Step 9: Invoice and Shipping

Once the order is confirmed, send an invoice including product costs and shipping charges. Ship the goods only after receiving payment to mitigate risks. Ensure your invoice clearly outlines:

  • Product Details: Items ordered and quantities.
  • Total Costs: Including shipping and any additional fees.
  • Payment Instructions: Methods and deadlines for payment.

Conclusion

Entering the wholesale market can significantly boost your brand’s growth. By following these steps, you’ll ensure a professional and efficient process, building strong relationships with retail partners and expanding your market presence.

 

How to Get Your Fashion Brand into Retail Stores: Wholesale Showrooms vs. Inside Sales

Welcome back to the Make Good Fashion podcast, where we guide you on how to start, launch, and grow impactful fashion brands. In today’s episode of our wholesale series, we’re focusing on how to get your brand into retail stores. We'll explore the difference between being represented by a wholesale showroom and handling inside sales yourself, weighing the pros and cons of each to help you make an informed decision.

Understanding Wholesale Showrooms

A wholesale showroom is a physical location that typically houses multiple brands. Buyers visit these showrooms to purchase styles for upcoming seasons. In this setting, sales reps present your collection to retail buyers. This setup contrasts with inside sales, where you either hire a sales rep or manage sales yourself from your headquarters.

Pros of Wholesale Showrooms

  1. Established Relationships Wholesale showrooms have long-standing relationships with various retailers. This network can be invaluable if you struggle to get your brand into specific stores on your own.

  2. Trained Sales Reps Showrooms employ experienced sales reps skilled in negotiation and knowledgeable about retailer preferences. They can provide valuable feedback and help tailor your brand to meet retailer expectations.

  3. Trade Show Management Showrooms handle trade show logistics, including setup and sales, saving you significant time and effort. Trade shows are critical for exposure but can be overwhelming to manage independently.

  4. Credibility Being represented by a showroom can enhance your brand’s credibility. Retailers are more likely to consider brands backed by reputable showrooms with a proven track record.

Cons of Wholesale Showrooms

  1. Fees and Commissions Showrooms charge fees and take a commission on sales, which can add up. Each showroom has different cost structures, so thorough research is essential.

  2. Control Over Representation You may lose some control over how your brand is presented and sold. While you can guide the reps, ultimately, they decide the best approach.

  3. Geographical Limitations Showrooms are typically located in fashion hubs like LA, New York, and Paris. If you prefer frequent in-person interactions, distance could be a drawback, though virtual communication is an option.

  4. Selective Acceptance Showrooms often have stringent criteria and look for brands that fill specific niches. Gaining representation can be challenging if your brand doesn’t align with their portfolio needs.

Exploring Inside Sales

Inside sales involve managing your sales from your headquarters, either personally or by hiring a dedicated sales team.

Pros of Inside Sales

  1. Cost Savings Avoid showroom fees and commissions. However, if you hire a sales team, budget for salaries or commissions.

  2. Direct Relationships Building direct relationships with retail buyers can be more beneficial long-term. You retain all contact information and insights directly from the buyers.

  3. Control Over Brand Representation You have complete control over how your brand is represented and which trade shows to participate in, ensuring alignment with your brand vision.

Cons of Inside Sales

  1. Relationship Building Establishing connections with retailers independently can be challenging, especially without prior relationships.

  2. Time Consumption Sales is a full-time job. Managing it yourself can detract from other business areas. Hiring even a part-time sales assistant can be a significant relief.

  3. Lack of Expertise Without specialized sales training, you might face trial and error in navigating the wholesale landscape. This learning curve can slow down your progress and affect your sales.

Conclusion

Both wholesale showrooms and inside sales have their benefits and drawbacks. Your decision should depend on your business needs, budget, and long-term goals. Wholesale showrooms offer established networks and credibility but come with fees and less control. Inside sales provide direct relationships and control but require more effort and expertise.

I hope this guide helps you decide the best path for selling your brand wholesale. Share your thoughts in the comments: will you choose inside sales or a wholesale showroom?

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Upcoming Workshop: Unlocking Retail Success

Are you curious about wholesaling your fashion brand? Join our upcoming workshop, "Unlocking Retail Success: Three Strategies for Getting Your Fashion Brand into Retail Stores." This exclusive event will cover strategies to help you secure a spot on retail shelves, whether you're starting or expanding. Don't miss out—reserve your spot now at makegoodfashion.com/wholesale. Trust me, you don't want to miss this opportunity!

 

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