Friday, June 18, 2010

Wholesale Clothing

Traditionally, manufacturers earn smaller profits when compared to those of transaction agents such as wholesalers, suppliers and distributors. Each step of the retail process results in transaction costs that allow each participant to make a profit. When these transaction agents are removed from the process, the manufacturer can then achieve profits that would otherwise go to other agents. In this situation, consumers are able to buy wholesale clothing at less expensive rates and the manufacturer receives a larger profit.

Since the expansion of retail chains, the idea of wholesale clothing has experienced a significant boost. Purchasing stock in large amounts allow for savings to pass to the consumers. Wholesale clothing distributors look to sell their clothes as fast as possible and the process of customer purchases are expedited by additional gifts. Wholesale clothing is offered for a cheaper cost because the intermediaries are eliminated from the wholesale process, providing less of a need for profits.

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