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23-09-2007
  136
windowshopping
 
Join Date: Jan 2006
Gender: femme
Posts: 8
Quote:
Originally Posted by go_extreme View Post
Can anyone help me and explain the following for New retail orders of desinger collection application:

1) FOR CREDIT & AGREEMENT FOR PURCHASES OF MERCHANDISE FOR RESALE
2) IF A CURRENT ACCOUNT APPLYING FOR NEW TERMS
3) IF APPLYING FOR CREDIT CARD TERMS


How important is it to have references, and what if I dont have any?

Thank you

for your first delivery from a designer you will probably just pay either cc or cod. from there certain companies will give you 'terms" (net 30-which means you have 30 days after recieving the goods to pay for it). after that if you pay on time you can use those companies as references to get credit from new companies. you usually get 'terms" from credit places like wells fargo or CIT, so you will be paying them rather than the designer themselves. also, many designers are factored by the same credit people so you will want to be dilligent about paying the factors. hope that helps. i am a terrible explainer.

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24-09-2007
  137
rising star
 
Join Date: Nov 2005
Gender: femme
Posts: 114
Here are few things that I have learned during the course of my little adventure.

1. I feel the best time to visit the showrooms are during market week. Usually you can just walk in. However, just be polite and ask if you could take a quick look. If it is something you are interested in, then ask if the distribution is still open in your particular area. Outside of the market week, usually the samples and the sales reps are out of town at a show somewhere.

2. Most asked question is: what other lines do you carry? This gives them a good idea about the look of your store. If you have a pretty decent size store, let them know. This allows them to figure out how much you can buy.

3. Always be professional and polite! Most sales reps are very friendly since at the end of the day, they need to sell. If you come across as being professional, they will be more than happy to help you.

4. As for the minimums, larger lines require on the average $10,000 - 15,000 per season. If you don't do the minimum, you do not have the exclusivity and someone else can 'take' the line away from you. Also, again since they are in the business of selling, skipping a season can hurt you. If you must skip a season, let them know your situation. Usually, if you have a been a great customer for them, they will work with you.

5. Always pay on time!!!!!!!

Hope this helps.

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24-09-2007
  138
front row
 
Join Date: Apr 2006
Gender: femme
Posts: 391
^Great info, Annabel lee! Could you tell us a bit more about how the buying process works? So we don't have to pay for the merchandise up front at the showroom? I'm going to the trade show in October, what should I bring besides business cards? Thanks!

Quote:
Because having a good relationship with sales reps is very important, I hope someone can elaborate on how many pieces per designer they think is a decent order. I really don't want to be known as the least important client due to ordering small quantities!
Maybe I have the wrong attitude, but Im more focused on my store and my budget then making them happy. I dont want to buy pieces I'm iffy about. But I could be wrong about this though, lol. I'm ordering about 6 styles from each designer, I might only order 4 from one because they require 4 styles and 4 sizes per shipment.

Do they usually ship the smallest orders last?

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25-09-2007
  139
rising star
 
Join Date: Nov 2005
Gender: femme
Posts: 114
Quote:
Originally Posted by kimberwyn View Post
^So we don't have to pay for the merchandise up front at the showroom? I'm going to the trade show in October, what should I bring besides business cards? Thanks!
you never have to pay for your merchandise at the showroom. since you are new, most all of them will ask for a credit card. most american lines will not charge your card until the merchandise ready to ship. most european lines, on the other hand, requires you to pay a deposit as they process your order. (most process the orders about a week so after the market closes.)

Quote:
Originally Posted by kimberwyn:3559730
^Maybe I have the wrong attitude, but Im more focused on my store and my budget then making them happy. I dont want to buy pieces I'm iffy about. But I could be wrong about this though, lol. I'm ordering about 6 styles from each designer, I might only order 4 from one because they require 4 styles and 4 sizes per shipment.

Do they usually ship the smallest orders last?
it is your business. you could choose to run it the way you want to.

however, if your market is saturated with many boutiques and such, it's very difficult to get and keep the line(s). therefore, if you cherry pick, most likely the sales rep will boot you when someone else shows interest and is ready to keep a relationship going. that is how i was able to 'take' many lines from lot of the nearby stores.

it is logical that the smaller orders are shipped last. if they miss the shipping date with a large department store, they will have a huge loss since the order can and will be rejected. smaller stores, however, still accept even after the cancel date since they NEED the merchandise.


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25-09-2007
  140
rising star
 
Join Date: Nov 2005
Gender: femme
Posts: 114
Quote:
Originally Posted by Kora View Post
I have always wondered how people open designer boutiques, and offer high end designer clothes(ex. Alberta Feretti,3.1 Phillip Lim, etc.) who do you contact? the corp.? and are there special qualifications? does anyone know?
ususally, the corp website has the contact info.; if not, contact the corp office and ask for the sales rep in your area.

there isn't really special qualifications. if you have a concept that fits their image and they are looking for a store place their product, you are in. therefore, where your store is located is extremely important. since i am in l.a., most are saturated and have closed distribution in the l.a. area. only thing you could do in this type of situation is call every season and see if anything changed.

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25-09-2007
  141
front row
 
Join Date: Apr 2006
Gender: femme
Posts: 391
Quote:
Originally Posted by annabel_lee View Post
you never have to pay for your merchandise at the showroom. since you are new, most all of them will ask for a credit card. most american lines will not charge your card until the merchandise ready to ship. most european lines, on the other hand, requires you to pay a deposit as they process your order. (most process the orders about a week so after the market closes.)



it is your business. you could choose to run it the way you want to.

however, if your market is saturated with many boutiques and such, it's very difficult to get and keep the line(s). therefore, if you cherry pick, most likely the sales rep will boot you when someone else shows interest and is ready to keep a relationship going. that is how i was able to 'take' many lines from lot of the nearby stores.

it is logical that the smaller orders are shipped last. if they miss the shipping date with a large department store, they will have a huge loss since the order can and will be rejected. smaller stores, however, still accept even after the cancel date since they NEED the merchandise.

My store is going to be online but a lot of the lines Im looking at arent even sold at any other online boutiques yet. Thanks for this info, its VERY helpful!

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27-09-2007
  142
front row
 
Join Date: May 2006
Gender: femme
Posts: 208
So I am working on my business plan now...woohoo what fun...and I am feeling slightly overwhelmed. How intense were your business plans?

and is markup around 2.5x wholesale? this is what I have heard and have made my business plan under this assumption...
thanks, this is a great thread and is super helpful. since many boutique people have given me the run-around )

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27-09-2007
  143
rising star
 
belladawn's Avatar
 
Join Date: Jul 2005
Location: New Jersey
Gender: femme
Posts: 182
Hey...
1. Yes I did order minimums, I usuall sent a standard email introducing my company, telling alittle bit about my customer's needs and that I woudl be interested in selling thier product, from which they contacted me through e-mail or phone.
2. there is no great way to get a customer list, I had friends and family give me a list of tier friends and work from that, my store is about 30 minutes from where I live also, it takes time to build a clientele. You can also buy lists but that can get expensive and is not very cost efficient
Quote:
Originally Posted by go_extreme View Post
belladawn or anyone that is familiar with the business:

1) When you were selling from home - did you order minimums? and how did you approach designers -since you didn't have a store yet?
2) What is the best way to get a customer list? (not family or friends list)
The reason why I ask is because the area I want to open is about 30 min drive.


Thank you

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27-09-2007
  144
rising star
 
belladawn's Avatar
 
Join Date: Jul 2005
Location: New Jersey
Gender: femme
Posts: 182
Business plan definately takes some time and the budget most likely will be more than you project.
As for mark-up average is 2.2x wholesale.
Quote:
Originally Posted by juliet3353 View Post
So I am working on my business plan now...woohoo what fun...and I am feeling slightly overwhelmed. How intense were your business plans?

and is markup around 2.5x wholesale? this is what I have heard and have made my business plan under this assumption...
thanks, this is a great thread and is super helpful. since many boutique people have given me the run-around )

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my intimate affair with fashion "Dream your dream, live your life, and look glamorous doing it" twitter.com/dawndelrusso
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05-10-2007
  145
scenester
 
Join Date: Apr 2006
Posts: 74
Is shipping usually added on to the total after the delivery of wholesale orders? If so, how much does it usually cost? What about import taxes on goods bought overseas? I have placed a lot of orders, but no one has mentioned shipping fees or terms.

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05-10-2007
  146
rising star
 
Join Date: Nov 2005
Gender: femme
Posts: 114
- Most domestic line suggested markups are 2.2 NOT 2.5. European lines could range from 2.3 - 2.5. However, if no one carries the same line as you near your area, you could mark it up as much as you want.

- Shipping is not included in the wholesale price. The shipping cost is paid by you when the invoice arrives. It varies from company. I think rule of thumb is like 1% of the invoice.

- If you need to clear customs yourself, they would have mentioned it when you placed the orders. Most are included in the price.

- If you are new account, usually you have to via credit card, COD, or pay ahead of time before they release the merchandise. Therefore, it is crucial you have enough to pay for all your merchandise.

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14-10-2007
  147
rising star
 
Join Date: Oct 2005
Gender: femme
Posts: 130
Hi Annabel Lee---I am interested in starting an online store and in a few years parlaying that intobrick and mortor store once I get settled in a location that I plan on staying perm. I am 26 but have a strong financial background at a very reputable international firm. However, my passion is fashion.

Do you think I need to build a website prior to contacting designers? I already have a business plan but I am not sure if that is enough?

Thanks for any advice.

Quote:
Originally Posted by annabel_lee View Post
luck and knowing the right people helps.

if u could get someone to 'like' you and believe in the 'concept' of your store, someone would take a risk on you. you need to be professional at all times. i was able to acquire several lines that way. they liked my store concept and the fact i had a strong financial and professonal background (this allowed them to sort of trust in me that i will represent their line well in the store.)

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14-10-2007
  148
scenester
 
Join Date: Apr 2006
Posts: 74
^^^It depends on the designers you are interested in, but I highly recommend it. I am in the process of opening mine and most sales reps asked to see my site before making an appointment. When I couldn't show it to them, they either didn't respond or told me to contact them after the store had been open a season. I was only able to secure relatively unknown designers for my first season because I had setbacks in getting the site developed. I had many reps tell me that they are not as strict with brick and mortar locations, but if it is web only at first you are going to encounter problems if you don't have the site completed (unless you are looking to carry super indie designers who don't even have sales reps or brands that do not care about oversaturating the market). The biggest designers that I contacted aren't even distributed very widely. I really didn't think I would have problems securing them, but I did.

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16-10-2007
  149
front row
 
Ariadne's Avatar
 
Join Date: Sep 2007
Location: USA
Gender: femme
Posts: 381
I am opening an online store, but I don't have a lot of capital. I don't know how to go about getting stock. Do you have to get stock from wholesalers? Would it be a bad idea if I got stock elsewhere to start out? For example, ebay, and stores near me. I can often find authentic designer goods much less than retail, probably less than wholesale. I would really prefer to buy wholesale but I simply don't have the money. Unless I can get stock for around $1000 per designer... is that possible?

Also, what are the laws regarding online retailers? Does anyone one know a good website that explains them?

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18-10-2007
  150
front row
 
Join Date: Apr 2006
Gender: femme
Posts: 391
Ariadne, I'm opening a boutique as well. What kind of online boutique are you planning and what kind of stuff/designers do you want to stock? Let us know and we can help you.

The clothes you get from the designer showrooms.

This is where you can find what showroom a label is located at:
http://lafashion.veplan.net/show.asp...25&__fn=&let=S

Here's one of the biggest buildings for showrooms in LA:
http://www.californiamarketcenter.com/

I just tracked down a few labels and emailed them for their line sheets. I didnt have many problems with most because they aren't really high end designers. No one asked to see my site, lol, but then again they aren't high end (think $100-$400 wholesale).

You can buy $1000 worth of merchandise from a designer if they don't have any minimums. You should read Annabell Lee's posts in this thread though.

Hope that helps. If you have any other questions ill try to help.

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