Clothing store sponsors?

[whisperwillow]

my economics teacher at school said that if someone is trying to start a clothing store without alot of money they can get a clothing company to sponsor them by letting them order clothes for the store and when you sell them you can pay them back. sort of like "borrowing". i didn't think it sounded right because i don't understand why any company would give away merchandise and just hope that the other person would sell it and pay them back? was he right and if so how does this work?

[Monchd]

Maybe what u might be referring to is a consignment procedure. I have a clothing label and what happens with some shops is that I leave some clothes at their store without them paying first. when it sells off, they pay me a certain percentage. A consignment procedure basically works like this, lets say the supplier determines a 30% consignment offer and the product costs $100. When the product gets sold, $70 will go back to the supplier and $30 will be kept by the store owner. Its that simple.

Monday's Child
Monchd Founder/Chief Managing Director
www.monchd.com

[iGROWyourBiz]

I am not familiar with any major mfg doing "sponsorship" or "consignment"

but most retail business get "terms" which means you get the product up front, maybe you pay 2% and the rest is due in 30 days.

Which allows you to have inventory and make some sales before the bill is due.

Sponsorship is when someone gives you goods, services or money in exchange for marketing exposure. In theory you might have a store with so much traffic you may get a FEW articles of clothing or specials or something because its such a hot spot. FOrget about it as a startup. However, there are also Co-Op dollars in which they will re-imburse you for some of your advertising dollars.

Consignment is not something a manufacturer is going to want to do with a startup again, because the odds are you wont sell their merch. WHich wont be "new" totally when you return it, or worse outdated.

Hope this helps

[NeeJam]

this is like alot of stores in the uk.

Even very big organisations use this in the uk - such as Halfords its leading in its market and has it suppliers to randsom so it pays them after recieving/selling the goods 120days later. It used to be 90days, which was high but now its 120days and their suppliers cant od anything about it as it has the biggest market share and spuuling the others wouldnt make them profitable.

[monaco251]

Best thing to to is go to craft shows or cheap trade shos to get your feet wet. Then you can sell your items at retail prices directly to the consumer.

[Langox510x]

Honestly I think your teacher is full of crap. Maybe she said bank, and loan.

[Lex]

Your teacher is right, but not entirely. Once you have setup a clothing business you can get products on Credit which will allow you to sell the products and it gives you a certain amount of time to sell them before paying your suppliers. However you can only get so many products on credit and if you fail to pay on time you may lose your supplier which wont be good for business.

Of course you need to find a supplier who gives credit and they arent going to do this straight away so you will have to make at least one purchase before you go asking for it.

Lex

[rreed21]

I have a younger brother that designs his own clothing and needs exposure, anyone that is willing to do consignment with him will be greatly appreciated

[coleygirl1041]

Good luck, hope you find someone to help you out.