In the previous chapter, the sourcing technique and the steps of placing OEM order have been detailedly highlighted. In this chapter, we would like to introduce the skill of selecting suppliers or manufacturers for various markets.
Profit is the most significant element which comes first in company's mind. Importers are always looking for low price and high quality things. However, it is not easy to find in the real market, Kids Wear Manufacturer. Price is always the refection of the quality. Actually, the successful business man should more look for the margin. Let's say, the over stock romper, sells at 0.5 USD per piece. The margin is only 0.1 USD. But the high quality dress, although its whole sell price is much higher, let's say 10 USD, the retail price would reach 30 USD. Therefore, when you select products, do not only focus on the import price. It would be more useful to consider how it can sell in your own market.
The sourcing agents usually search for the stock lot or large quantity of cancel order. The stock lots are sold at very low price with large quantity. These products are more suitable for distributors who already had certain degree of customer based or various distributional channels.
However, the over stock and cancel order may not be suitable for brands or small retailers. Brands have their own design and retailers which cannot match such large quantity. So what is the better supplier for brands and small retailers? The answer is turning to the trading company. Trading company has many catalogs at hand with small MOQ. Small retailer can select from the catalog by small order. For the own design production, the brand owner can have a one stop purchase from the trading company. We have mentioned that it is impossible for one factory to complete the whole collection. The trading company can save a lot of headache for you. They help you supervise the factory's work including quality control and shipping.
As a buyer, the whole sell price is not the only aspect that needs to focus. More attention should be paid to the evaluation of the predicted sells volume and the profit margin, Kids Wholesale Clothing. Also, it must make sure that which business type you are running, a sourcing agent, a brand owner or small retailer. The collection should be selected based on your business type.