This is Serious Business

Since most of you are unable to attend Posh Fest, I have decided to post the contents of my section over here:

Reseller’s Permit / Business License

Reseller’s Permit – allows you to buy bulk wholesale from manufacturers/wholesalers

Business license – allows you to operate a business

Reseller’s Permit

Google is your friend

Type in “reseller’s permit [STATE]”

E.g. Reseller’s permit California

untitled

Follow instructions, fill in the right forms and you are done.

Why do you need a reseller’s permit?

  1. If you do not live in sunny Los Angeles, you absolutely need a reseller’s permit to purchase GOOD wholesale online.

In LA, most wholesale stores do not require you to show your reseller’s permit when purchasing from them in person. Yes, those lucky Californians.

 

  1. Yes, you can purchase some wholesale without a license but why do you want to limit yourself?

There are websites that do not require a wholesale permit. However, most these websites stock unwanted inventory. This is where out of season pieces/worst-sellers go to die. Everything on these sites can be up to a year or two old. Fashion is ever changing. You need new, fresh styles every season and not something from 3 seasons ago.

Yes, there are vendors in online marketplaces that do not require you to have a wholesale permit but you can count on one hand how many of these vendors are manufacturers*.

*You want to buy from manufacturers and less from wholesalers. Wholesalers tend to buy from these manufacturers and sell at a higher price (hey, they need to make a living too). When selling items that are completely the same, the person charges the lowest price wins. Hence, the person who buys them at the lowest price wins.

 

  1. Allows you to broaden your wholesale base so you can figure out:

What you should buy

How would you know which styles are the bestsellers when you cannot even access their line sheets?

Call your vendors! Ask them which are their bestselling styles/colors/materials and more. PICK UP THE PHONE!

How much less you should pay

Did we mention call your vendors? CALL THEM! Ask if they can give you a better price on styles. Ask them to hold your items so you can ship at least 5 packs in one shipment. MOST of them will do that.

  1. In many states, applying for a reseller’s permit is FREE.
  1. You don’t need to purchase inventory to have an active reseller’s permit.

There has been a lot of chit chat about how you need to spend $X a year to keep your reseller’s permit open. NO. All you need to do is file your sales tax (quarterly/annually depending which state you are in)

  1. SHOP AWAY

Wholesale places are difficult to navigate. If you are new to this, nothing describes the first few weeks as accurately as #MindBlownShootMeNow. There are SO MANY items and not enough time to look for them all.

Make a list of all the vendors you like (and with the lowest price – remember our manufacturer/wholesaler debate) and shop only those vendors. As time passes, you will add more and more names to that list.

Inventory

Once you receive your wholesale order…

  • Unpack ASAP. You don’t want a bunch of boxes lying around because that is just money sitting in your living room
  • Do you like the item? Do you like the quality? Do you like the material? If your answer is no, don’t fret. RETURN IT. Most vendors offer 3-14 day return policies so this is why unpacking early is so crucial
  • Check your items for flaws. Vendors are not perfect and might send you something with flaws. Call them up and have them comp return shipping and shipping for a brand new pack.
  • Time to organize!

Inventory Management

Organizing:

  1. Stackables
  2. Cubeicals
  3. Plastic drawers
  4. Clothing racks
  5. Storage space

Inventory Map

Location Name/Barcode SKU Brand Small Medium Large Restock
Tops 1 Serenity/T6547 WOW COUTURE 3 2 1 No
Tops 1 Ransom/T9390 TREND 2 1 2 No
Tops 2 First words/T9348 WOW COUTURE 1 1 1 No
Tops 2 Here & Now/T3884 POPPY 1 0 0 Yes

 

Price Map

Item Cost per unit Retail Price Total earnings Profit Lowest Retail Price Total Earnings Profit
Serenity/T6547 $13.50 $48 $38.40 $24.90 $35 $28 $14.50
Ransom/T9390 $15 $50 $40 $25 $40 $32 $17
First words/T9348 $15 $50 $40 $25 $40 $32 $17
Here & Now/T3884 $17 $55 $44 $27 $40 $32 $15

Paid Inventory Management Apps/Software

  1. Checkout App – $499 Mac Only
  2. Quickbooks Plus – $40 a month
  3. Clearly Inventory – $40 a month
  4. Inflow Inventory – $399 Reg, $799 Premium

Advertisements

2 thoughts on “This is Serious Business

  1. I’m really glad I stumbled upon your blog! Absolutely fantastic! Great advice with some lol content. How can I subscribe? I hope you can post new content soon.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s