Buying Power the Key to Discounted Clothing Prices

  • Added:
    Jul 04, 2014
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Buying Power the Key to Discounted Clothing Prices Photo by Colin Armstrong

When it comes to purchasing wholesale clothing, UK consumers have a lot of choices in terms of styles and prices. Nevertheless, why is it some companies charge significantly more for the exact same piece of clothing than others do? Some of it has to do with the cost of doing business at the wholesale and retail levels. However, buying power is also an important part of the equation.

To illustrate the concept of buying power, we will use as an example. The online fashion distributor purchases clothing and accessories directly from manufacturers around the world. They then turn around and sell those products directly to retailers and individual consumers.

The principle of buying power is directly related to how the company prices its wholesale clothing. Buying power is determined by the number of pieces they purchase from manufacturers. The total number of pieces in any given purchase is known as a 'lot'.

Larger Lots, Better Prices

Clothing manufacturers produce so many articles of clothing that they don't have to worry too much about getting a specific price per piece. Instead, they can structure their pricing based on volume. The higher the sales volume, the more money they make in the long run. So in order to encourage volume purchasing among distributors, they base their pricing on the size of the lots being purchased.

A larger lot translates to a lower price per piece. Therefore, a company like seeks to buy lots that are as large as possible. Their ability to do so is what measures their buying power. The more they can purchase from the manufacturer, the lower the per-piece price they pay. They can then offer lower prices to their retailers and consumers.

The same principle applies to retailers purchasing wholesale clothing. UK retailers with greater buying power can purchase more pieces from distributors in larger lots. This affords them lower prices they can pass on to consumers through normal pricing. If their buying power is strong enough, they can afford to offer more frequent sales and discounts as well.

We hope that you now have a better understanding of buying power and how it affects clothing prices. Buying power is the key to a successful wholesale business. Undoubtedly, the clothing industry trend is driving and all the time, updating in a rapid manner. While collecting the wholesale clothes in bulk it is required for all to have the clothes that always in style as well as contains good demand in the market for at least a long run.

Author's Profile is an online company specialising in wholesale clothing. Their bulk buying power enables them to sell directly to consumers and retailers at discounted prices. Do visit now and amaze with the special prices!

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