Since the growth of retail franchises, the idea of wholesale clothes has experienced a significant boost. Buying stock in large amounts allow for savings to pass to the consumers. Wholesale distributors look to sell their clothes as quickly as possible and the process of customer purchases are expedited by more gifts. Wholesale clothes are available for a cheaper cost because the other involved parties are eliminated from the wholesale process, providing less of a need for profits.
Traditionally, manufacturers make smaller profits when compared to those of transaction agents such as wholesalers, dealers and distributors. Each step of the retail process results in transaction costs that allow each member to make a profit. When these transaction agents are taken out of the procedure, the manufacturer can then realize profits that would otherwise go to other managers. In this situation, consumers are able to purchase wholesale clothes at cheaper rates and the manufacturer receives a larger profit.
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