Wholesale clothing overruns
is a closeout category that refers
to clothing that was overproduced
by a factory.
A clothing overrun can happen
for various reasons. Understanding
the reason that lead towards the
overproduction of the clothes can
help you make the right buying
Overruns can occur for many reasons,
although these are the
primary reasons in my experience.
A factory has become accustomed
to receiving orders for an average quantity
of clothes every month. One month
the factory experiences a substantial
drop in orders but has still produced
the same quantity of clothing
since it expected to receive more orders.
Another reason is because a
factory might decide that the
incremental cost to produce an
extra 100, or 1,000, dresses
In other words the cost of the added
material might be very low,
and since the machines are
already running it might be
very worthwhile for the
factory to produce the additional
If there is an excess of available clothing
due to a drop in orders, then you need
to be careful.
You might not want
to buy clothing that other
wholesale buyers have decided
to cut their orders for.
They might have a very good reason
for why they are no longer interested
in ordering that clothing. Perhaps the
fashion trends are changing and there
is no longer a demand for that style.
On the other hand, the wholesalers
might have cut their orders because
of micro economic factors, such
as a slow down in the economy
which they serve. Or maybe
the fashion trends have changed
only in the markets which they
are supplying products to.
If the market that you
supply merchandise to is
still vibrant, or your customers
still like the styles of the clothing,
then you should consider purchasing
the fashion overruns.
As far as the second reason for
why overruns happen,
which is that the factories keep the
machines running, you need to be
aware of the following.
If the clothing is based on the
intellectual property of a
brand or designer, then you
need to obtain permission from
the brand or designer to purchase
But if the clothing is generic,
or is based on intellectual
property that belongs to the factory,
such as their own designs and brand,
then you should be able to purchase it.
In the first situation the factory might
be under pressure to sell the clothing
since it was expecting orders that
never materialized. You should be
able to negotiate a very low closeout
price for their apparel.
In the second situation the factory specifically
manufactured the garments for wholesale purposes,
so the factory will not be as inclined to give you
a really low closeout price.
Your determination as far as purchasing any
apparel overruns should be based on the
demands of your customers.
No price is low enough if your customers
don't want the products.
On the other hand, even a seemingly
high wholesale price can be fine
if you can still make a profit
when you resell the merchandise.
When purchasing overruns you
need to take great care in insuring that
the garments are in excellent condition.
If the garments have been sitting in
storage for an extended period of time
then they can be lose their luster due
to humidity or other weather related
There are many storage facilities that
have climate controlled facilities,
so the length of time the garments
are stored might not be an issue
in this case.
But still, you generally do not want
to purchase overruns that have
been in storage for a long time.
The longer the items have been stored
for, the more of a chance there is
that the styles are outdated.
This would not be an issue if either
the styles are very generic, such as
with blank T-Shirts, briefs, sport socks,
and other similar items.
Even if the item has a unique style
that is outdated it might still work
for your customers.
For example, let's say you purchase a
lot of overrun baseball caps. The baseball caps
might have a design based on a popular
sporting event that already took place.
If your customers don't mind, since they
might not be sports fans, then you
might still be able to sell those baseball caps
But if the style is so unique that your
customers simply won't like it, then
you should pass on the closeout.
Another important factor is the actual
quality of the overruns. It's possible
that the reason the factory received
less orders is because the quality
of the clothing has gone down,
or the excess clothing that was produced
was not made with the exact same
material as the first run.
Since overruns denotes that the
merchandise is extra, you also
want to be careful not to purchase
a clothing style for which there is a
flood of it in the market.
For example, if a group of
factories collectively have
hundreds of thousands of overruns
of a specific blouse style,
and the market can only absorb
a few thousand units at most,
then you would not want to
purchase that blouse.
On the other hand, if you
can purchase those blouses
for less than other wholesale
buyers will, and you can turn them
over before other sellers
gain access to those blouses,
then you might decide to take
advantage of that closeout.
The value of overruns, like every
other product category, are subject
to the forces of supply and demand.
Ideally you would want to develop
a relationship with a factory so that you
would have the opportunity to purchase
their excess production as it is available.
And remember, since there likely
will be more excess production
in the future, your goal should
be to quickly move the merchandise
that you purchase.
You also want to be in a position
where you can buy more of their
extra apparel as it becomes available.
If you are not in a position to buy
the apparel the factory
will look for another buyer
and you can possibly lose your
Factories will be happy to have one solid
contact that they can rely on,
so be that contact.