How Much Does It Cost to Buy Wholesale Clothing?

Oct 28,2021

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If you want to buy wholesale clothing, you may wonder how much does it cost to buy wholesale clothing because you need to calculate the budget before you start your clothing business. Here, we will tell you the estimated price according to your requirements and preferences.



What is Wholesale Clothing?




If you want to know what is the wholesale price of clothing you have to understand wholesale clothing very well.



The Apparel Industry consists of companies that design and sell clothing. Product categories include almost everything from basics, such as underwear, to luxury items, for example, lather coat.




Wholesale is purchasing a large quantity from suppliers and manufacturers directly and then selling them to other small wholesalers or retailers. Wholesale clothing generally refers to clothing purchased when buying directly from the manufacturer. A lot of clothes are divided into design, color and size. Most of the time, in order to buy wholesale clothing, buyers must buy in bulk.



Wholesale clothing is not limited to physical stores now. With the development of the internet, wholesale clothing online is on the trend, and many clothing wholesale websites have also emerged. Everyone wants to earn money with this special opportunity. Compared with carrying large bags and small bags to the traditional clothing wholesale market, online wholesale saves time and effort, and the price is almost the same as the offline market. Thus, many people choose to purchase their wholesale clothing online.




The physical wholesale market is important in social and economic development, occupies a basic position in the entire industry structure, and will not be replaced by online wholesale clothing in a few years. Internet is the product of social development. Its emergence solves the problem of collecting and displaying part of the procurement resources, which is very convenient. Whether it is physical wholesale or online wholesale, each uses its own characteristics to contribute to the development of the entire industry.



Traditionally, apparel companies were wholesalers, selling large quantities of goods to retailers, which then marked-up items and sold them to consumers at a profit. However, it's become more difficult to draw a line between wholesalers and retailers and most apparel companies now have both types of operations.



The Differences between Wholesale and Retail Clothing Price



The wholesale price is the amount of money that a product or service is sold to a large-scale enterprise buyer. If you work directly with a fashion manufacturer, your unit price will be lower than the unit price for retail purchases. This is because wholesale suppliers need to recoup the money they originally spent on purchasing your products from the factory where they were manufactured. They do this by charging you a unit price higher than the factory price. Some wholesalers charge fashion retailers up to twice the cost of the factory.



Buying clothes at a lower price directly from the factory where they are made allows you to sell clothes at a lower price, giving you a competitive advantage in the market. With private label clothing, you can also increase your profit margins by reducing the commissions of middlemen.



The price between wholesale and retail clothing is different for the following reasons:



1. Regional sales


The retail price of a commodity is often determined according to the consumption and sales situation of the area, while the wholesale price is basically fixed and may not be affected by the regional situation, which means the sales price is set at the beginning.



2. The ultimate profit target


Retailers buy goods at low prices from wholesalers, and then in order to achieve their ultimate profit goals, they will set retail prices according to the plan. Therefore, this is also the reason for the large difference between retail and wholesale prices, while wholesale prices are for volume. Therefore, the price is generally very low.




3. The impact of additional services


Generally speaking, wholesalers do not need to face consumers to sell products. Even if they sell products to retailers, they will not provide additional services, whole retailers are different. Some furniture products will also provide services such as installation and maintenance.



The difference between retail price and the wholesale price will be too large due to many factors. Therefore, when consumers buy goods, they can also choose to stock up and try to buy the most favorable products to achieve the purpose of economic benefits.



What Affects the Wholesale Clothing?


If you want to buy wholesale clothing, you will have to consider the problem how much does it cost to buy it. First, you have to find out who are your target customers, because different people will purchase diverse type of clothes. For example, if you want to sell wholesale clothing to teenagers, you have to purchase clothes with a variety of styles and types. At the same, you don’t have to buy them at a quite high price. However, if you want to sell wholesale clothing to white collar women, you have to take the quality into consideration, which means you need to prepare more budget to place orders.



The price of clothes has many pricing factors. You have to make it clear before answering how much does it cost to buy wholesale clothing.



1.Branded clothes have a high price. For example, generally, the price of the name brand wholesale clothes will be dozens of times or higher than the cost of common clothes.




2.The cost of material and labor. This mostly depends on the places where you are. For example, the cost of the labor force in the US is higher than that in China.



3. Advertising investment. The extra expense like making the advertisement will definitely increase the cost.



4.The season. The price of wholesale clothing generally depends on the time when you purchase it. For example, if you buy winter clothes in advance like in summer, the costs will be much lower. Besides, if you buy wholesale clothing before peak season, there is no doubt that you will pay more than normal days.



5.The purchase amount and the type of wholesale clothing.





In many cases, the number of wholesale clothes has a great influence on the price paid to get them. For example, when you purchase more clothes at a time, the money you pay will be less. It is possible you pay $8 when you only buy 100, but it will be $4 when you purchase 1000 at the same time. Thus, it is easily to be noticed the wholesale clothing is cheaper than the retail clothing.



At FondMart, you can take a look at the different type of women’s clothing.






There is a relatively simple way to determine the purchase amount, that is, add up the monthly operating costs of your entire store (including store rent, artificial water and electricity, taxes, management expenses, etc.), and then divide by the profit margin, and the data obtained is you The amount to purchase each month. For example, if your total operating costs are $500, and the average profit from selling products is 200%, then you need to buy $250 in clothes at the very least, because 500/200%=250. In this case, you can just balance your income and expenditure. If you just bought $200 in clothes. Then even if you sell these goods within a month, your profit will only be $400. It is not enough for your expenses.



With sufficient budget, we recommend you as many types of goods as possible, because you need to give customers a variety of products to choose from. When you have a certain understanding of the customer, you can lock in a certain type of wholesale women’s clothing, because funds are always limited. Only when you focus your funds on a limited type, can you purchase a large amount of a single piece of clothes at the lowest price.



How to Set the Proper Price?


After buying the wholesale clothing, you have to sell the clothing to other people. Then, you have to face the problem of setting the proper price.



The basis for determining the price will be the result of seven aspects: clothing cost, threshold price, demand elasticity, customer price expectations, the impact of additional services on them, and competitors' prices.





How much price is the customer willing to pay for the clothes? If you are a customer, you will purchase wholesale clothing at a very high price?



The price your customers can afford to pay depends on many factors, such as the location of the store and the income of the target audience. When we know the customer’s same profile picture, we can accurately understand their needs and how much they can spend on clothes each month.



People look forward to purchasing wholesale clothing at the best price, but you can’t set the price too low. The clothing wholesale cannot blindly pursue low prices. Because it is too easy to sell at a low price, you can sell the product when you put it on it. As a result, people will be flooded with sellers who only sell products cheaper. As a result, your customers will get the impression that your wholesale clothing is very cheap. Low prices are also a business strategy. However, if you keep pursuing low prices, you will lose your target customers as the low price generally doesn’t mean high quality.



FondMart is a platform integrating over 2000 verified suppliers and manufacturers in China. You can purchase as many types of wholesale clothing as possible with a simple click. Come to buy and get started for free!



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+1 5714890103




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Hangzhou, Zhejiang, China 311100

+1 5714890103

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