The concept of wholesale buying isn’t new. The leverage obtained from wholesale buying or “economies of scale” was first documented two thousand years ago. This concept has universal applicability. In this article, we shall discuss the illustration of its use in the procurement of clothes. The benefits of wholesale clothing purchases are fairly obvious - consumers can save money.
Clothes pass through many hands before they are finally purchased by a customer. A garment maker produces the clothes and sells them to a sales distributor. The distributor then sells the articles to a wholesaler, who in turn sells them to various retail outlets. The customer then buys the clothes from the retailer. Each step of this process results in transaction costs that allow each participant to turn a profit, resulting in much higher prices to consumers. If a wholesaler sells the clothes, some of these intermediaries are eliminated and therefore the cost to the consumer is significantly lower.
Here we should consider the advantages from the manufacturer’s viewpoint. In the past, producers of goods saw smaller profits than wholesalers, suppliers and distributors. With those others taken out of the loop, a manufacturer can be sure that more money goes into his pockets. It’s a better deal for both manufacturer and consumer. The consumer purchases less expensive garments but the manufacturer still sees more of a profit than he otherwise would.
Retail chains flipped the concept of wholesale clothing all around. These chains buy in bulk, allowing them to pass their savings on to their customers. In addition, these chains want to turn over stock as quickly as possible. This provides added incentives to buy wholesale. These purchases often receive bonus gifts that accompany the original order.
There is another little appreciated facet of wholesale clothing. Often, we are benumbed by available variety and end up buying clothes which we don’t really want. Sometimes we duplicate our previous purchases. By buying several clothes together, you can make sure that each garment you buy is unique. It also allows you to match shirts with trousers. When these are purchased individually, matching clothes becomes a difficulty.
Our world is a brand conscious world, and people want items to both use and to show off as well. This is true for everything, including clothing. Don’t go on thinking that trendy designs such as hip hop clothing are not available at wholesale prices. They are - especially at online wholesale clothing outlets. Even the most expensive labels out there wholesale designer clothing to attract customers. And much of this designer clothing is moved through wholesale designer clothing websites.
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- Howard Brule
Highlights 
January 13th, 2008 