Expert: Jill Odermann-Mullins - 12/13/2011

Question
QUESTION: Hi Jill,
I don't have any qualification in the apparel business or exporting it. I will do anything to make it possible.
My problem is the buyers that are available are asking to deal directly with the factory, so i tried to go as an agent for the factory but then realised that when the buyer gets the details of the factory they will cut me off.
Then I tried to get my own line of clothing but still the buyers are asking if they were produce by my own factory.
Is there a loop hole where I can get into this market.?

ANSWER: Hello Shiraza,
If I am understanding you correctly, your question is: how do you protect your resuorces and stop buyers who want to cut you out? Is that correct?

I have not worked with African factorys but in my experience there is no reason why "buyers" would be given inside information as to where and how you are producing, receiving or buying your salable goods.  If there were cleaver enough in the first place, they would have done it themselves before you yes?  You should not be giving details or factory inforamtion to your customers. All they need to know is country of origin and care of the textiles. You are in charge of your first cost and your markup. It's none of their business, either they want to buy from you or they don't.   I hope this helps.

---------- FOLLOW-UP ----------

QUESTION: Thank you for your reply.
The reason why they ask questions about the factory is they don't want middle person. Even if I give them a good price they think they can get a better price dealing directly.Also they need to check if they have the experience handling their required quantity.
Since i have no experience,i thought i will give the buyer the  proof of the factory capability, can i do this? If i can how do I give these information to the buyer without giving away the name of the factory?

ANSWER: Hello,

Once you lose "face" as they say in China or you allow your credibility to be questioned, it is very difficult to regain that respect. So protect yourself, do not allow them to intimidate you. If you do not have an answer at the exact moment of the question, Tell them you have to check on some technical information and that you will be back to them within 24 hours with the information. Then run for HELP to find your answer. Be certain to reply to them in 24 hours with full information but do not give away your advantage.  A professional attitude and demeanor and way of doing business can often disguise your other weaknesses as you are learning. Don't become nervous, breathe and reply slowly.

It is your job to communicate w the factory  regarding capacity and timing. You went to a lot work, used your connections, time and energy to make the relationship with the vendor. If the buyer  think they can do better, walk away and let them try but DO NOT give away insider information!!  They may soon come to a realization that a few dollars more is worth not having to invest time and energy on their own to discover what you already know.

Proof of capability is something that would be in your contract and if  delivery and quality issues are not met, it will result in a claim against you or your claim against the factories and monies will have to be settled from that point.  

In closing, be certain that you are doing proper factory evaluations not only for capacity and timing but for quality inspection, human rights and business practices.  Compliance is a very big issue and you  may  need to research vendor compliance to help you better learn your chosen path. Just because a factory has machines does not mean that they can make ANY product, for example, do not expect a factory that makes tee shirts to be able to produce blue jeans or swimmer. They should have a list of labels or brands that they have produced and their samples to show you their level of quality.  Donna Karan does not make in the same factory as Walmat. understand??

Good Luck

Jill

---------- FOLLOW-UP ----------

QUESTION: Hi Jill,
I checked out the factor, they are capable of every thing I need. They are well equipped to handle the capacity.
How do I show the buyer in writing that the factory has the experience and able to handle their order, without giving the details?

Answer
You will create a proposal out linlng what services you will provide. This will serve as your contract with your buyer. If the factory fails in anyway, it will be your responsibility as far as the buyer is concerned.   If you do not know how to write a proposal you can research on the Internet or purchase books on vendor compliance and apparel production to help you. It is also a good idea for you to have an attorney as a consultant.

good luck