# Average order size from retailers...



## nution (Aug 6, 2008)

So I was doing a bit of math and had a question for you wonderful people 

When you are pushing your own line to potential retailers, I have heard that a 9 in 10 rejection rate is to be expected. I personally would have figured it to be much higher, but that would be my first question.. Does that figure seem about accurate in your experience?

Also, and the main question... What is the average order size you would budget from one retailer. 

I know there are alot of variables to consider like the size of the retailer, brand recognition (if any), cost, variety etc etc... But, just on a standard run, for your line, what would you say is an average order size from ONE retailer. Like how many shirts do they buy at one given time?

Also, what if any minimums do you require per design, as I am sure this would effect the size of the order. Thank you for your help!


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## novanutcase (Aug 6, 2008)

nution said:


> So I was doing a bit of math and had a question for you wonderful people
> 
> When you are pushing your own line to potential retailers, I have heard that a 9 in 10 rejection rate is to be expected. I personally would have figured it to be much higher, but that would be my first question.. Does that figure seem about accurate in your experience?
> 
> ...


You are right! A lot of factors go into it but if I had to guess it would go like this:

Boutique - 8 pieces per style/color. Most likely will run 2 styles to test with.

Pro - They'll buy it at line price
Con - Low units

Department store - They'll usually start with around 250 pieces per style/per color. They'll probably test with 3 styles.

Pro - They can buy bigger but they'll want at least 10% off of line price. 
Con -They can also come back and nail you for markdown money if it doesn't sell well or if it does really bad they can return it.

Discount store - They'll probably run around 600 pieces per style/per color. Same deal as department stores, around 3 styles.

Pro- They can buy big and they usually won't return goods.
Con- They'll grind you on price. Usually around 50% of your line price.

John


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## Webo (Jul 3, 2008)

HI thanks for the info...when you say "line Price" are you referign to the wholesale price, nto the retail corect?...your sayign that they will want up to 50% of the wholesale price - of course in return for big volume.

Thanks in advance


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## novanutcase (Aug 6, 2008)

Webo said:


> HI thanks for the info...when you say "line Price" are you referign to the wholesale price, nto the retail corect?...your sayign that they will want up to 50% of the wholesale price - of course in return for big volume.
> 
> Thanks in advance


Yes! Line price means the price you are wholesaling your line at.

Yes, 50% of wholesale price.

John


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## Rodney (Nov 3, 2004)

Wow, I've never heard of a retailer wanting 50% of the _wholesale_ price. That sounds like robbery


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## novanutcase (Aug 6, 2008)

Rodney said:


> Wow, I've never heard of a retailer wanting 50% of the _wholesale_ price. That sounds like robbery


Sad but true!

They want to grind you down to the bone!

John


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## the funk (Aug 8, 2007)

In the traditional sense, that should be close to what you paid for it!


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## novanutcase (Aug 6, 2008)

the funk said:


> In the traditional sense, that should be close to what you paid for it!


Yes but when you're doing 10,000 units the little per unit you make is justified in the overall volume that you are doing since you can negotiate better pricing with your vendors.

John


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## hussa (Jan 23, 2008)

so say you are selling your t-shirts for $40 you would sell them to the retailer for $20? Giving them a 50% markup.

What is the average markup retailers have in their t-shirts?


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## ino (Jan 23, 2007)

i doubt it very much that any retailer would only accept 50% markup, I should think that they expect at least a 100 to 200% markup.

At the end of the season they do not slash their prices by 50% to make a loss, remember they have their rents,electrics,wages and taxes to pay as well.


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## CUSTOM UK (Jun 28, 2008)

It is a buyers market for retailers. Unless you have an exclusive, high demand product, they will try to nail prices to the floor at every opportunity.

One hundred percent mark up is quite typical.


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## deuce (Apr 16, 2008)

Scope them out before you shop them. look at other similar brands or styles that may fit into what you are bringing to the table and look at what they are selling it for. If its a hot product then of course they are going to latch on. How are you marketing it outside of the store for them? are you going to let people know that its available there for them to get and help get people in the door to the store?

not saying to carbon copy the pricing of similiar items.. but look at what they are retailing them for to help come up with a fair number that works for both parties..


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## novanutcase (Aug 6, 2008)

deuce said:


> Scope them out before you shop them. look at other similar brands or styles that may fit into what you are bringing to the table and look at what they are selling it for. If its a hot product then of course they are going to latch on. How are you marketing it outside of the store for them? are you going to let people know that its available there for them to get and help get people in the door to the store?
> 
> not saying to carbon copy the pricing of similiar items.. but look at what they are retailing them for to help come up with a fair number that works for both parties..


Exactly! Usually boutiques will mark their product up 2.4 times whatever they bought it at wholesale. For example, if you sell your t-shirt to a store at $20 they will mark it up to $48.

John


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