Sew, What's Up

Sew What’s Up Presents

The Sew What’s New Archive

This archived content is from Mary Wilkins’ sewing and quilting message board “Sew What’s New,” which was retired in August 2007. It is being provided by “Sew What’s Up,” which serves as the new home for many members of “Sew What’s New.”
From: wazoodle
Date: 04-13-2003, 09:12 PM (1 of 23)
I started a little fabric business about a year ago. It's been a lot of hard work, but I have to say I live it!. Many of the nice people that drop by our place tell me they dream about opening a little fabric shop like ours. It is pretty dreamy in the beginning, what fun -- shopping all day for fabric... with a truck!

When I got my first truck load I treated it like my personal stash. I would go into the storage area every morning, look at it, feel it, have coffee with it. How could I possibly sell all this wonderful cloth? The day comes when you have to sell the goods (or sell the house), so off to work I went.

In the first few months I shed more tears than I did in my entire life. Our family savings had been converted to cloth that nobody wanted to buy! Months went by with 1 or 2 orders a week and I thought it might be time to throw in the towel. I persevered and a year later I'm a reall business and firmly on my feet.

If anyone is interested or curious in the other side of fabric life, or starting a business as work at home mom, I'm happy to share some of our learnings. I'd also love to hear other stories of other women who are startign or have built themselves a business.

Lee Anne
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: yeepers
Date: 04-13-2003, 10:11 PM (2 of 23)
Lee Anne:

I would love to hear more about your fabric business as I've been playing around with the idea of adding fabric to my selection of products.

I make custom handbags and recently started carrying select bag/purse patterns from certain designers. I am considering adding fabric to my wares but am wary of doing so as I don't want to have a whole stash of fabric and no sales.

Any suggestions/advice greatly welcome!

Cheers.
-Yee
Two Turtles
User: yeepers
Member since: 03-29-2002
Total posts: 52
From: MaryW
Date: 04-14-2003, 07:09 AM (3 of 23)
LeeAnne, I did the same thing many years ago. I can remember it being my dream come true turning into moments of sheer panic.
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: wazoodle
Date: 04-14-2003, 09:04 AM (4 of 23)
Mary:
Panic -- I know what that is about. There are times when it gets so frantic that I just freeze. Orders popping, phones ringing, shipping deadline coming, printer out of toner, salesmen at the door...

I often think the Twilight Zone episode where a man found a magic watch. When he stopped it, the world froze. I'm hoping that watch is available in a ladies style.

Yeepers:
The markup on fabric is quite slim so there is a lot of risk in holding inventory. Lets say you purchase 10 bolts to offer 10 styles -- if one bolt doesn't sell you could lose money on the lot.

It might make sense to hook up with a local or internet fabric store. Explain what you are doing and ask them for a discount rate -- then you can sell without carrying the inventory. It's more work for you and the profits will be slimmer, but you can avoid investment until you are confident in the mix of products that you can sell. Some may even drop ship for you making things a whole lot easier.
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: MaryW
Date: 04-14-2003, 10:49 AM (5 of 23)
I used to print my own catalogues. That was wrong! I thought I was saving money but it cost me more to do it than to job it out to Staples or someone else. You can't take anything for granted.
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: yeepers
Date: 04-14-2003, 06:19 PM (6 of 23)
Lee Anne:

I'm surprised that the markup on fabric is so slim. I've been looking around and my research shows that fabric is marked up at least 100%.

Am I wrong?

I know it's a big step. That's the reason I haven't don't it yet.

Still thinking about it though.

Your advice/thoughts are appreciated.
-Yee
Two Turtles
User: yeepers
Member since: 03-29-2002
Total posts: 52
From: wazoodle
Date: 04-14-2003, 07:46 PM (7 of 23)
Yee,

If you could sell fabric at full list price the margins might approach 40%. Retail stores will have higher margins than Internet stores, mostly because retailers have the goods there to touch and feel.

If you are doing a business plan, expect 25% or less. You also have to remember, this is a fashion business, so you might be selling some of your goods below cost if you make bad buys or you deal in seasonal items.

For instance, Malden Mills, a big maker of Polar Fleece is rumored to be in financial trouble. To reduce inventories and get cash, they dumped tons of fleece into the market. Feb we had jobbers offering us Malden fleece at less than 1/2 the normal price. Then in March Malden dumped tons of fleece in assortment bags -- to get the cash quickly, they sold through their Internet store directly to consumers. Fleece that sells for $8-12/yd wholesale showed up direct from the manufacturer at $2.50/yd. Retailers who stocked up on the jobber deals in Feb may sit on the goods till the fall -- they never expected Malden to dump goods directly to consumers. Retailers holding big lots of good fleece are eating bread and water this month!

It's a dog-eat-dog business, feint of heart need not apply!
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: MaryW
Date: 04-15-2003, 05:20 AM (8 of 23)
There are also times when the manufacturers will sell knock offs. These knock offs are poor copies of the original first run fabrics. A lot of people are happy with these, that makes the originals hard to sell. This happens a lot with quality cottons.

Some less than wonderful fabric manufacturers make a whole line of knock offs to sell to the big chain stores. They also buy in such bulk that small private owner stores can't begin to compete.

Manufacturers will run a whole line of fabrics, say, an array of good quality jogging fleeces in different colours. Sometimes they have a whole line of matching ribbings to match. These will sell well, but with absolutely no notice, they will discontinue the line. It can create havoc. Not only that, they won't tell you until you have tried to re-order. You just never know.
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: yeepers
Date: 04-15-2003, 11:05 AM (9 of 23)
Lee Anne:

I hear what you're saying. That's the reason why I'm hesitant to jump into selling fabric. There are just too many things to take into consideration and it wouldn't be the mainstay of my business so maybe I'll just stick to buying fabric for myself and for my bags :)

Cheers.
-Yee
Two Turtles
User: yeepers
Member since: 03-29-2002
Total posts: 52
From: wazoodle
Date: 04-28-2003, 11:53 PM (10 of 23)
You mentioned the knockoff stuff --that's true. The quilting cotton manufacturers new ways to sell more -- the latest is selling bundles that consist of 5yd cuts of assorted prints from a collection.

Fab shops buy these bundles at 1/2 price then roll the stock onto existing bolts. The fab manufacturers want retailers to keep the prices high -- this maintains prestige for their brands. It also keeps thousands of little fabric retailers happy (don't have buy power).

My perspective is that if fab manucacturers can up their business by selling bundles at 1/2 price, I should be free to pass the savings along to my customers. They disagree -- if I refuse their pricing recommendations and sell at a fair markup, they cut me off.

Not the first mill I've fought it out with a mill -- wait a couple of weeks for some great deals on some designer kids cottons!
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: yeepers
Date: 04-29-2003, 10:07 AM (11 of 23)
Lee Ann:

Do you sell online? If so, what's your url?
-Yee
Two Turtles
User: yeepers
Member since: 03-29-2002
Total posts: 52
From: MaryW
Date: 04-29-2003, 12:33 PM (12 of 23)
Yeepers, LA is www.wazoodle.com
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: MaryW
Date: 05-29-2003, 03:16 PM (13 of 23)
LA, when is your busiest time?

I used to work retail and summer was really slow, but not so in the mail order.
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: wazoodle
Date: 05-29-2003, 11:18 PM (14 of 23)
I don't see much difference in the volume of business from month to month, I do see a big change in the fabrics that people are looking for. I see the "500% off everything in the store" signs plastered on the windows at Fabricland and the fabric distributors are wheeling and dealing, so I guess things may be slowing down in retail.

Knits in summer colors and prints are popular now, so are the poly and nylon athletic fabrics like dazzle, supplex, and mesh.

If you like to stash, now is a good time to buy cottons and fleeces. There are a few reasons for this: 1) US quotas on imports are not yet filled so there are lots lower cost imports available 2) the big quilting convention just ended so thousands of last year's prints are hitting the market at great prices and 3) there is a glut of polar fleeces on the market so prices are temporarily low on these items. Fleece will begin to climb again in July as the glut gets absorbed by garment makers.
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: fr8rain
Date: 06-14-2003, 03:41 PM (15 of 23)
Just wanted to say hello to Lee Anne at Wazoodle. Hope business is booming. And no, I haven't forgotten your catalog. I've been unbelievably busy. I read your story in the business profiles. Good stuff. They're going to be posting mine next week. :-) I'm throwing some business your way when I can.
Kathy
Kathy's Lace & Elastic Outlet - Ebay
R & M Lace and Elastic
User: fr8rain
Member since: 05-17-2003
Total posts: 4
From: MaryW
Date: 06-17-2003, 09:28 AM (16 of 23)
The fabric business has slowed down a bit in this end of the country. The local stores are showing it too. Sales, sales, sales.

One large retail outlet is moving. I feel bad for the clerks. They have to do inventory before they move, move and fill new store then inventory everything again. :nervous:

Been there and done that.
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: wazoodle
Date: 06-17-2003, 10:33 AM (17 of 23)
The fabric distributors & local shops around here are finding a things slow. I thinks it's a combination of things.

1) More and more fabric shops are becoming dependent on quilters these days. Quilting cottons are expensive and they turn very slowly, particularly in the summers when guilds close and quilters enjoy other things.

2) Basic ready-made items like tees, shorts, and pullovers are very inexpensive. Fab shops in turn have tried to fight this by sourcing cheaper goods which many sewers pass over. Try and find a good 28-needle interlock or a 10+ oz jersey in a fab shop today!

3) I think big fabric stores fool around with pricing gimmicks. Our local FabricLand always has some sales bonanza going on. I dropped in the other day to check prices and noticed some budget fleece I know they bought for less than $3 -- it was marked up to $17.99, then discount aat 50% OFF to $8.99. I don't think this fools anyone.

In September I'm going to take a run at the local FabricLand when I open our first retail outlet 100 feet from their front doors. We won't have the breadth of product they carry, but we will beat on quality and price. FabricLand clerks already send me customers, I can't wait till they send them to our new store!
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: MaryW
Date: 06-17-2003, 10:39 AM (18 of 23)
LeeAnn, good luck. I wish you all the best. Will you continue with the mail order, part as well or just handle the retail?
MaryW
owner/editor of Sew Whats New
User: MaryW
Member since: 06-23-2005
Total posts: 2542
From: weB2cats
Date: 06-17-2003, 11:18 AM (19 of 23)
Aloha!

My business is just a startup at this point. My official website:
http://www.thehawaiianeye.com

offers summer dresses and accessories, for fun. The website itself is still under construction so bear with as there are errors.
Entreprenuer on a budget.

I am always on the lookout for interesting new hawaiian fabrics. So, I was intrigued by the front page of Wazoodle. Now, if I could find time to check it out. Maybe tonight after work. The front page held my attention, so far. Can't wait to look inside and see if there are any Hawaiian prints...

E.
User: weB2cats
Member since: 11-07-2002
Total posts: 232
From: wazoodle
Date: 06-17-2003, 11:48 AM (20 of 23)
Mail order is the backbone of our business and that formula is working well for us. We will continue expanding our lines and continue looking for specialty markets that are not served well by the chain stores and fab department at WalMart.

The retail store is an experiment. Basically we are opening our warehouse to local shoppers -- we aren't planning to be a traditional fabric shop. This will help us keep our overhead and prices reasonable.
LeeAnne
User: wazoodle
Member since: 10-17-2002
Total posts: 29
From: lovemyfabric
Date: 07-07-2003, 02:20 PM (21 of 23)
If you want to start your own internet fabric store, how small can you start?

I'm a stay at home mom and would love to be able to work from my home. But I'm sure it is a lot of work and headaches having your own business.

Is it hard to find good quality fabric to sell and do you have to buy a large amount?
User: lovemyfabric
Member since: 06-06-2003
Total posts: 126
From: yeepers
Date: 07-07-2003, 05:11 PM (22 of 23)
lovemyfabric -

some things to take into account...

1. Website hosting fees
2. Merchant account for credit cards?
3. Shopping cart
4. Website setup
5. Fabric inventory
6. Shipping supplies
7. Dedicated phone lines?

and there are MUCH, MUCH, more that you have to remember to take into consideration.

Fabric can be purchase "relatively" cheaply (wholesale pricing) but you have to buy by the bolt and that gets expensive e.g. $4.25/yd (USD) x 12-15 yds per bolt x the number of different prints you wish to carry.

I'm sure that many others will be chiming in with pearls of wisdom.

Best of luck to you!
-Yee
Two Turtles
User: yeepers
Member since: 03-29-2002
Total posts: 52
From: lovemyfabric
Date: 07-07-2003, 10:33 PM (23 of 23)
It's probably something I'll never do. I love to buy fabric and sew, but if I had my own business I probably wouldn't have any time to sew.
User: lovemyfabric
Member since: 06-06-2003
Total posts: 126
Sew, What's Up
Search the “Sew What’s New” Archive:
Visit Sew What’s Up for the latest sewing and quilting tips and discussions.
This page was originally located on Sew What’s New (www.sew-whats-new.com) at http://www.sew-whats-new.com/vb/archive/index.php/t-9628.html