Let’s talk business.
What makes a label attractive to wholesale buyers? A number of things really, and here we are listing the top 3, most important factors.
If you know your customer, and you know that they will only spend 200 USD on your product, don’t spend 400 USD on creating it. That’s common sense, isn’t it? But is this also equally obvious that to sell something for 200 USD, you can only spend 50 USD or less to make it? Wholesale buyers look for markups starting at 2x the wholesale price. New designers have to be able to give wholesale buyers a higher markup so buyers still stand to gain if they have to mark down the new products to make sales. Pricing right is extremely important if you are looking to go down that path of targeting wholesale buyers.
2. Right channels
When you are starting out, focus on getting into niche boutiques that will buy from you instead of placing you on consignment. But where do you start? Look at your competitive matrix – where do similar brands hang? Start with those boutiques. To target those boutiques, participate in the right trade shows. If you get your channels right, it is a matter of time and perseverance before your label gets picked up.
When you are starting out, and are a fresh new label on the block, delivery will be questioned – do you have the production capacity to meet the order size? Do you have the working capital to produce and ship the product? Are you a one man/ woman army or do you have the support you need to execute and deliver? Demonstrate that you have the right business partners and are stable enough to process the orders.
The Inde Project is one such business partner. Email us on email@example.com for more information on our collaborative services!