So you found a factory and you are excited to get to work but you need to lay some foundations so you start off on the right foot.  To help you achieve that I thought I’d share some key tips on negotiating with factories, you are going to look and feel like a total boss when in discussions!

Remember to be collaborative with your factory, if you treat them like you would your bestie and work together, they will 100% go that extra mile for you.  Trust me on this one, I’ve been a supplier and I’ve always prioritised the nice buyers over those who make demands!

Be clear, be concise, be nice and you are well on your way to good negotiation skills.

1. Payment terms.

Ensure you talk to the factory about payment terms.  For small orders, most factories want a deposit upfront usually between 30%-50% of the total order cost.

2. Never take the first price.

Always negotiate with the factory on price, never take the first one.  It can help with the price if you are placing a few orders with a factory to maximise the best price for your orders.

3. Be aware of shipping costs.  

CIF and FOB are the most comment terms.  FOB (freight on board) means the price to make the garments and get them to the port, you then have to take over from there and organise the shipping.  You can ask for a CIF price (cost, insurance and freight) or can be called a ‘Landed’ price.  This will be delivered to your door and most small companies are better with this as they don’t have to worry about getting the goods shipped to them which is a whole other process!

4. Get written confirmation!

Please ensure you get all prices, dates and payment terms in writing! You must have all of this in written form to refer back to avoid any problems with prices and lead times later down the line.  

If you’d like help with further help on negotiating and costing head to my contact page and get in touch.