Before going into the negotiation with the wholesaler, it is necessary for the clothing retailers to conduct a market survey and check the price offered by different wholesale suppliers. Price comparison should be the first priority because it helps retailers determine the retail price. After price comparison, a retailer gets in a better position to negotiate with suppliers on rates and other terms.
Negotiation is an art, which is hard to master as it requires in depth knowledge, thorough information of facts and figures, related market research and of course expertise on negotiation tactics. The most important point here is that one should never underestimate the negotiation strength of the other party because they might leave you shocked with their expertise. Winning the best wholesale deal is not that difficult; all you need is a little research and thorough practice. Let’s discuss some tactics which can help clothing retailers close a profitable deal.
(a) Before hand knowledge:
Before going in for negotiation with clothing wholesalers, retailers should do some homework. They should study current clothing trends, variety of the stocked available in market, material quality and the public demand. The price fluctuation in wholesale market is quite frequent and alters various stats therefore they got to be aware of that as well. They also need to have clear idea of their budget, the estimated expenditures and the retail price which they can set to earn decent profit.
(b) Mold negotiation strategy as per situation:
Negotiation is a complex communication process and requires both parties to agree on common grounds. That is why good negotiators always adopt different strategies for getting good deals. They tailor their approach according to the situation. While negotiating with UK Wholesale Clothes, one needs to maintain an accommodating and professional attitude. Being a good listener will help a person know the other party’s limitation and gives him an idea about how much flexibility it can show.
Retailers should ask different questions about the product, its quality, variety and price offered by them wholesale supplier and compare it with the one offered by the other suppliers. These questions will help them assess if supplier is offering a fair deal. In certain conditions, it would be good to keep the information about order quantity. Once you see the supplier show a flexible attitude and you both move forward to closing the deal, do make a mention of it and ask about how much he discount he will offer for bigger orders.
(c) Listen to the wholesaler carefully:
Never let the air of meeting get heated up so try to keep a friendly attitude. Wholesaler also has a full right to ask series of questions from retailers, so it is also part of negotiation to fully satisfy the wholesaler as well. Wholesalers always prefer returning clients and like to make long term business relationship. So do make a mention of your long term business interest in his company and the supplier will regard your suggestions.
(d) Ask About Hidden Charges:
While concluding the deal, it is better to confirm from the Wholesale clothing supplier about the additional charges, if there are any. There are many kinds of hidden taxes, shipping costs and VAT which are generally not discussed in the meeting, but when the payment becomes due, these charges add up to increase the cost. The UK government has announced to increase the VAT on all clothing products which means 20% rise in the retail as well as wholesale clothing price.
William King is the director of Wholesale Clothing, UK Wholesale , UK Manufacturers and UK Wholesale Clothes. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.