Comments on: Financing fashion: 10 mistakes designers make

By: Selling to department stores pt.1

Selling to department stores pt.1 — Tue, 15 Sep 2009 20:37:01 +0000

[...] pay within 30 days. In other words, if you need the money, you will need to be factored which means borrowing money from a business against the value of your invoices. The kind of factoring you need depends on your [...]

By: Tom

Tom — Tue, 17 Mar 2009 14:08:16 +0000

Aaron, there’s AMEDIMAC, the Fashion Designers Association of Mexico, Guillermo León is the president and he’s got all the info that you’re looking for regarding financial aid. I don’t think they will help you personally but they can surely get you in contact with companies willing to pay a tuition overseas (patrocinadores)… you have to compete with other students though, and prove that you’re their best bet since.. as you probably already know.. there’s no money to spill in Mexico.. unless you have a few relatives up above. if you know what I mean.

By: julia

julia — Fri, 03 Nov 2006 15:57:09 +0000

Gary, there is a lot of talk about the pitfalls of selling to department stores if you are a newbie, (net 30 days and chargebacks), but I was thinking… if you hire a factoring company would’nt you be covered for the chargebacks? Just curious. Also is it hard for a newbie to hire a factoring co.?

By: Fashion-Incubator

Fashion-Incubator — Fri, 11 Aug 2006 23:32:06 +0000

Analyzing business plans pt.2

Based on the comments from visitors to part one of this series, I realize I should have I recommended that you read Factoring invoices: financing a fashion line and Financing fashion: 10 mistakes designers make as well as part one…

By: gary wassner

gary wassner — Sun, 11 Jun 2006 20:42:24 +0000

Overseas production can be an important thing to consider at a certain point in your business. You have to be able to meet the production minimums. It doesn’t pay to produce small numbers overseas, particularly China, and in fact, most production companies have high minimums – 100 pieces per style/color at the least. You lose a bit of control as well and usually you need to open a letter of credit before they will ship. Prepaying can be dangerous. An L/C give you much more protection against late delieveries and quality issues if you require an inspection certificate, and if the manufacturer will accept that requirement.

If your production runs are still small, you just need to find the right factories here. Much too depends upon the price point. It’s hard to compete in the moderate and lower markets with domestic production, but it’s not difficult if your product is in the designer price point.

By: shin

shin — Sun, 04 Jun 2006 07:13:59 +0000

Thanks for the insightful advice. I will definitely take the advice to heart. I do have a question about domestic production? I understand that designers have a much better control over domestic productions, however I have run into quite a few problems including bad and/or inconsistent quality and high production prices. One solution I was given by a friend in the industry, was to bring the production overseas. Their reasons being that manufacturers overseas (ie. China) have the latest machinery and is able to pretty much do everything inhouse making the entire process much easier, significantly cheaper and provide consistency in the production line. I have a few concerns including quality, and higher produciotn numbers. Since I am new to this, I am definitely hesistant about the entire process. Any suggestions?

By: Gary Wassner

Gary Wassner — Thu, 01 Jun 2006 13:45:58 +0000

Not really. They ask everyone and they only get it from some. Enough designers feel pressured and succumb. In a way it’s blackmail and you should not allow anyone to blackmail you when you are trying to build a business. I hear it all the time and I give the same advice every time. Say no! Every label starts small and has to build a following. Besides, selling the majors as loss leaders is never a healthy policy. Tell them no and walk away. If the product isn’t selling, they’re not coming back for more anyway. Sometimes you need to help them buy, guide them, maybe encourage them to buy just a little less, styles you’re more sure of. If you’re not dependent upon them in a serious way then you can move on.

For a high end designer, the specialty stores around the country are crucial. They can be loyal, they don’t discount you unfairly and they have consistent customers who look to them for the labels they promote, for the consistency in the products that they carry. Build your base around them.

By: Gladys Goldsmith

Gladys Goldsmith — Thu, 01 Jun 2006 12:16:38 +0000

All your comments are great. However, unless your label is one that the stores must have you are really at their mercy. When they ask for you to help them out with markdown money your hands are tied. When you are one of the giants you can call the shouts and just walk away.

By: Gary Wassner

Gary Wassner — Tue, 30 May 2006 17:51:13 +0000

Email me. Call me. You don’t need a business plan. You just need to know everything there is to know about your own business. I’ll take it from there.

By: imani

imani — Tue, 30 May 2006 04:25:18 +0000

How does a new designer approach a factor? Do you approach the same way you do a banker-with a business plan? Or is there another way?

Thanks!