danielb started this topic @ 20:15 on 29/09/2004
I currently operate an online clothing business in conjuction with a local shop, things runs smoothly, i take the internet orders, they ship them out from the shop.
But, they have also started to trade under their own website, selling similiar products and ranges to me, my mentor/advisor says "Get out quickly". seeing as I am not getting the best deal with my current and only shop supplier price wise - I am trying to arrange a plan of how to keep the same setup, but use my own suppliers, wholesalers, dropshippers, rather than scrape a thin profit off the top of one shop supplier while i spend £700 a month on advertising and not making much profit, I wish to setup my own office and deal with suppliers direct , use storage space to ship in goods, then post them out again using royal mail business service, does anyone else do this?
I mean it would be ideal if i could find a dropshipper that could do this for me - but I realise some major clothing brands can only be bought in bulk from a supplier at a time, i guess i could take the 40-50 orders i get a week on the website and only order when and what i need? will wholesalers do this as i know they have limits of min amounts to purchase at one time like 20 items.
I'm just so fed up really of putting all the work into my website and having it copied by my supplier for their own business advancement, my ideal setup would be similar to M&M Sports or Figleaves dot com where the warehouse and office is in the same location and they just ship the goods straight out.
A lot of work is ahead to plan this through, and I am lucky i have the backing of the Princes Trust/Advisors, who are currently helping me.
would love to hear from anyone else who had supplier problems and was shafted on prices, so decided to 'cut out the middle man' as it were and go it alone.
thanks
Daniel
ps would like to give more info on my business , but as my current supplier doesnt know I am looking around for alternatives dont want to give out too much information, want to see the current site running , while I do the background work 
RE: Business Dilema
Jonny | 30/09/2004 09:41 AM
Daniel,
Sounds like the other guys are tying to take you for a ride!
Here's a plan (certainly not bulletproof but just a few thoughts):
If you look at past sales you'll probably find that 20-30% of the range make up a good 60-70% of your sales (the old 80/20 rule!) and probably delivery 60-70% profit too.
Now, I would focus on these key lines, don't try and stock a huge range, just several carefully selected, robust, tried and tested, popular products is all you need. Then I would approach the shop's supplier direct and get stock of these lines.
Then, as you are running an online outfit (start small) and do not have to carry the overheads of an actual shop, you should be able to undercut these other guys prices significantly and there's not a great deal they can do about it.
At the same time you can be looking at other product ranges from other suppliers to stock and hopefully end up with a better product offereing and more competitve prices. And ultimately win their customers.
Sweet revenge.
Of course this is just hypothetical and I have no idea about your business, market, customers etc etc.
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RE: RE: Business Dilema
stephenjamesmurray | 30/09/2004 10:33 AM
Hi Daniel
sorry to hear about your dilema but I am glad you are trying to move forward and not giving up on it. I assume from what you are saying that they are still willing to fulfill your orders for you - therefore in reality you are not really in any different situation than you were before except that there is 1 more web site out there that you are in competition with. You have also managed to gain valuable experience so far in terms of gaining market knowedge and what does and does not sell which will be invaluable to you in the future as well as a head start on marketing the site.
In terms of dropshipping - to be honest there is not a great deal in the way of this being offered at the moment in the clothing business. Having said that you may want to contact matt at
www.habaneroclothing.co.uk as I know he offers both wholesale and dropshippng options - although obviously it depends upon what type of clothing you are looking to sell.
In the mean time I would continue to use the shop to your own benefit to service your orders and at the same time sourse and introduce your own products so that over time you can dispatch them yourself.
Anyway, good luck and hope all works out well
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Stephen
http://www.urbandesignclothing.co.uk
RE: RE: Business Dilema
Mattley23 | 30/09/2004 06:36 PM
Thanks for the plug there Stephen, much appreciated.
As Stephen said, we do offer drop shipping arrangenments to e-tailers who want to stock our brand, this just provides a no risk way of being able to stock our brand if your finances for stock buying are limited.
Our prefered method of supplying stock is obviously at trade prices if you wanted to buy in bulk and deliver direct.
Obviously it depends on what type of clothing site you have but if your looking to stock some cool skate & snowboard influenced streetwear gear please feel free to contact us and we can have a chat.
Matt
P.S: Hows Urban Design coming along Stephen?
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Matt Giles
Shropshire Garage Conversions
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