Lowering Clothing Prices by Eliminating Overhead

  • Added:
    Jul 08, 2014
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    911
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Lowering Clothing Prices by Eliminating Overhead Photo by Colin Armstrong

It wasn't too long ago that all of our clothing purchases were made at local shops and retail centres. Prior to the explosion of the Internet, the local retail model was the only way to bridge the gap between clothing wholesalers and the average customer on the street. Moreover, while the model accomplished its intended purpose, it had one fatal flaw that ended up being the driving force bind online commerce: overhead.

The term 'overhead' describes all of the extemporaneous things a business owner must pay for in order to make his products available to the general public. Overhead includes renting retail space, acquiring and maintaining storage space, maintaining a sales staff to work with customers, and so on. Overhead is the single biggest contributor to the mark-up retailers applies to their pricing structures.

Eliminating Overhead Reduces Costs

A 40% mark-up was not uncommon among clothing retailers a few decades ago. They needed to generate that kind of revenue to cover the costs of overhead. However, things are different today. Internet-based commerce has reduced mark-ups by eliminating overhead. Take UKfashionwholesale.com as just one example.

Because they operate using an online business model, they do not have the added costs that come with opening and maintaining retail outlets. They do not have to worry about shop space, local storage space, a sizeable sales force, and everything else that goes into the retail equation. This allows them to be one of the more competitive clothing wholesalers out there.

Wider Customer Base

Another thing to consider is that the online model gives the wholesaler a wider customer base. Using an online model to sell clothes wholesale, UK distributors can offer better pricing for both retailers and individual consumers. They earn profit from retailers by selling to them in volume, while the profit from individual consumers is earned by a slightly higher per-piece price. Both types of customers benefit by enjoying lower prices than they could get from a conventional wholesaler operating a brick-and-mortar enterprise.

The Internet age has accomplished a lot of great things most of us take for granted. One of those things is lowering the price of clothing by eliminating the excessive overhead costs that have plagued the retail sector for so long. Everybody seeking for exclusive purchase of wholesale clothing for a wholesaler, but one must need to spend some time in screening the good wholesalers in the market on whom we can rely upon. Once a retailer gets the hand of a trusted one, there is nothing to look back for anything.

Author's Profile

UKfashionwholesale.com is an online company that sells clothes wholesale. UK retailers and individual consumers purchase directly from their website for maximum savings without the overhead.


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