Manufacturing notes PDF

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Gutkowski Manufacturing Notes for Digital Marketing...

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Manufacturing notes A. Inventory: a. Wholesale (merchandising company) i. Cheaply purchase large amount, pre-made from wholesale manufacturer (usually Chinese) this is highly popular and cost effective, items are instyle and selling very well at three times the original cost to the retailer ii. Good wholesalers include: 1. Dear Lover (shipping costs are a little high, but they are outweighed by the benefit of the extremely low cost and large range of the items available) 2. Shein (cheap, but may be low quality) 3. HiHailey (fantastic quality denim, really great prices, low shipping costs, no MOQ, used by Fashion Nova, a brand known for their great jeans) 4. ROMWE (cheap, may be low quality) 5. Emmiol (allow you to negotiate your target price and order quantity, quality clothes, could be a viable option) iii. You can also simply post several wholesale items for sale with a small MOQ (minimum order quantity) and order a small batch of them iv. If your wholesale goods are not selling, you slash prices, give out opportunities for “buy one get one” and other sales promotions. 1. Refer a friend and get 40% off 2. BOGO 25%, 30%, 50%, etc. 3. Slash prices to just above original purchase price 4. Offer a special discount to social media personalities with a large following in exchange for them posting a photo wearing the purchase and have them tag the company and offer their “exclusive discount” to anyone who uses their coupon code (give them a coupon code to give out to followers for 10% off) 5. Last resort, sell to re-sale companies such as Marshalls, Ross, and TJ Max b. Custom made (manufacturing company) i. Foreign manufacturer 1. Get quotes from several manufacturers to see what the most cost effective option would be 2. Look for the one with the lowest MOQ a. https://www.idealabgz.com/ ii. Local manufacturer 1. Can be more costly, but quality is assured. Will require charging a higher price for the clothes, which may make it harder to grow the customer base quickly. Customers are looking for the cheapest option

a. Strata MFG—note: they usually have a MOQ of 100+, so if using strata it will probably be better to outsource your clothing but have strata customize them/put on the vinyl or embroidery desired b. Geraldy— i. small batch and made-to-order services. ii. No longer excess stock, order as you go and manage shipping directly to your customers. iii. NO MINIMUM ORDER, as promised. Small batch production provides emerging designers with an opportunity to start their brands with a small budget. iv. Gowns, dresses, blouses, coats, trousers, denim , outerwear, bridalwear, suits and tailored garments, underwear, sportswear, swimwear, streetwear v. https://geraldy-online.com/wholesale? utm_source=google&utm_medium=cpc&utm_cam paign=%7Bapparel+manufacturers %7D&utm_content=466827736937&utm_term=clo thing%20manufacturers 2. Order wholesale plain goods close to your vision, have them customized locally (saves money, lets you lower your price, quality assurance in your design) iii. In-house production 1. Time consuming, have to charge more for your time spent creating the goods by hand 2. May require training 3. May end up being more costly with materials Supply and demand: Customer Interest/Sales  Perform analytics to determine why customers buy a single item at a certain price from one retailer versus another (prices may vary item stays constant)  Data analysis software  need good data on prices, quantities, and then characteristics of the customers ( or the sellers).  loyalty programs : track customers purchases and try to figure out patterns in those purchases and how responsive those customers are to changes in price  cookies : track web browsing in order to try to further understand customer choices

Manufacturing:  Job-order costing o Used when many different products are produced each period

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o Products are manufactured to order Contribution Format Income statement o Sales (selling price per unit x units sold) – Variable Expenses (these include COGS, Variable selling expenses, and Variable administrative expenses, must be multiplied by number units sold) = Contribution Margin o Contribution margin – Fixed Expenses (selling and administrative) = Net Operating Income...