Minimum Order Quantities
This week marks the end of our 40, 80, 120 bundle structure. Customers regularly remarked that, after a successful week of sales following product launch, a number of sizes and/or colour were now out of stock.
This led to another re-purchase of 40 or 80 units to plug the gaps left by initial sales.
This all sounds great so far, however, customers were getting stuck in a loop of ordering small bundles, frequently. This situation being sub-optimal from a unit cost perspective and also from a supply side perspective whereby maximum efficiency in printing is reached at higher volume levels.
After weeks of wrestling with this problem we decided to implement a two-pronged strategy.
The New Bundles
The new product bundles are comprised of 100, 150, 250 and 500+ units.
The minimum of 20 units per garment type remains, allowing for full product range even in the ‘Lean’ bundle.
This is quite a jump I hear you say, how can we afford to invest in marketing and other areas when we need to purchase 100 units minimum?
When stock sits in our warehouse, neither you, our customer or ourselves are generating any value from it.
So, how could we address this issue by enabling buyers to shorten there investment return whilst simultaneously improving production efficiency?
Enter, staggered payment terms.
We will now offer a 3-month payment plan option with all orders to customers based in Europe. Sorry USA, we are working on a solution!
During the first month, all buyers will have this option interest free. Thereafter, we will charge a 2% fee for this option.
Not only does this lower the initial invoice amount for you, our customer, it enables you to start generating sales and profit before paying the full invoice amount.
If you have any questions with regards to the workings of the new structure, please feel free to get in touch.