I had a discussion with one successful entrepreneur of a buying house on this topic. I had also gained knowledge when I was working with number of buying houses, during my job in a garment export house. I will share few points those are essential for starting a buying office. And I hope these notes might be helpful information for your business start up. Actually all the followings points are primary requirement for starting a successful business.
Initially you don’t need a big office; you can start your business with 3-4 room office. It is essential to prove your existence in the business and a communication address.
Product development cell:
You need to set a product development facility that may include designer(s), a sampling room and show room to display your products and developments. Develop your product range (product profile) with your creative team to attract your buyers.
Minimum working team:
Develop a team with merchants, technical department and Quality Assurance team. Technical team would help your designer to develop products and sampling. Merchants will be required to day to day communication with your buyers and suppliers. Their job can be extended for sample development from supplier factories, sourcing of materials, providing approval to suppliers. Don’t forget to consider quality aspect of samples and production.
Supplier base development:
Develop supplier base in your region or low cost clusters. Make your suppliers’ list as big as possible. There are many reasons of having large suppliers contact. You will get competitive price for production, you can cover wider range of products, have larger capacity for production for big buyers etc. In your supplier base include small supplier as well as medium to large manufacturer for social compliance point of view.
Sample development services for buyers:
Many small buyers look for sample development facility in buying houses. You can do this job for buyers. Actually you don’t need to set up sampling room for this service. For buyer’s samples like FIT and SMS (salesman sample) instead of developing yourselves, go for samples are made by your suppliers, from where you are going to procure the order. Supplier would not disagree for the sampling, provided you would give them production orders. Tactic of earning from sampling services. For small number of samples, suppliers would not charge you. But you can charge for those samples from buyers.
Offer buyers full package of sourcing orders.
Buyer prefers buying houses those provide complete solution for garment sourcing. Like
quality assurance and shipment inspection
Logistics and shipment
Good relation with buyers:
When you are going to start buying house, I assume that you have contact / good relationship with some buyers. And you might know well about buyer’s behavior. Prepare yourself accordingly. I mean
Costing procedures and achievable cost
Colors for various seasons
No contact with buyers?
If you have no contact with buyers, you can proceed with following method
Develop your product range
Create a list of buyers those are sourcing similar to your product range
Contact buyers and show them your product range
Start your business
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