Ever wonder how stylish clothing, awesome shoes and trendy accessories wind up on the shelves and racks of your favorite retail shops and department stores? Some come directly from the manufacturer. Others originate at retail outlets where a middleman handles the procurement end of the transaction. If you're looking to become that conduit, you'll need to know the ropes. Since it's all about saving money these days, you could not have picked a better time to become a clothing wholesaler.
Instructions Step 1 Put together a solid business plan that outlines your philosophy and methodology for establishing, capitalizing, managing and operating your clothing wholesale business. Having a line of credit to handle everything from stocking your shelves to underwriting business fees and expenses will get you off to the right start.
Step 2 Apply for a tax resale identification number. You'll also need to pay membership and other fees that allow you access to the wholesale showrooms, trade show venues and other "trade only" sites frequented by clothing wholesalers.
Step 3 Visit clothing manufacturer's showrooms and offices using your new credentials. Meet with sales reps from the companies with which you wish to do business. Choose your target product mix. Specializing in one type of garment or a size category (plus-size, petite, junior, formal) gives you an inside edge on that market.
Step 4 Evaluate buying requirements of individual clothing manufacturers. You might be required to take a minimum number of items from a new collection. Some manufacturers allow wholesalers to cherry pick from a new line, but will require a minimum dollar amount.
Step 5 Negotiate wisely. As a rule of thumb, the retail price of a garment is calculated by multiplying the manufacturing cost by five; that figure is cut in half to determine the wholesale price. Clothing wholesalers buying more than the minimum usually get deeper discounts and could even be considered
clothing distributors.
Step 6 Open new markets by searching for small clothing houses that have yet to be discovered. Represent their products as part of your wholesale business, but don't take on so many lines that you're unable to keep up with them all. This can be an artful dance that leads to exhilaration or exhaustion. Find middle ground and you'll enjoy your exciting career as a clothing wholesaler.
Read more:
How to Become a Clothing Wholesaler
