Tuesday, March 2, 2010
Our custom shoe business is growing nicely so we thought we'd try out hand at offering a wholesale service to fashion retailers.
Retailers can design shoes for their stores using our online shoe designer, then if they order a quantity of each style and colour, and are happy to wait 2-3 months for delivery we can offer them a wholesale price which we believe is competitive with what similar shoe brands in the market are offering. The retailer gets the added benefit of being able to design shoes that complement the other products they stock in their store.
Our cost to manufacture multiple pairs of an identical shoe is less than the cost to make one pair of custom shoes. And ocean freight costs for a large quantity of shoes are less than 1/10th what we pay to post a single pairs of shoes directly to customers, hence being able to offer a good wholesale price.
We're not sure how this business will compare with our custom shoe business, but our theory is that our custom shoe offering is helping us build a good brand, which we can leverage to offer wholesale, ready made shoes. And while we make much less selling a wholesale shoe, in theory the volumes should be much higher.
We'd love to hear your thoughts, and if you know any retailers who might be interested please let us know as we'll be spending the next month or two speaking to as many retailers as we can.
Posted by Michael Fox at 10:09 AM