14/06/2021
THINGS TO CONSIDER BEFORE DOING YOUR FIRST PURCHASE
Hello there, it has been a minute. Here we are again. I thank you so much for liking our page and keeping it LUKU WEAR. As promised last time, I would like to highlight a few things that a new retailer should consider before doing the first purchase or buying the very first bale.
Most times people get into the mtumba business just by hearing from others, who may or may not have been into the business before, that the margins are usually very high. ‘Biashara ya nguo iko na pesa’. I am sure you have come across that statement even if in different ventures.
Whether or not your mtumba business makes profit is a question of more than one factor. The truth is many people have made it just as many have failed in the same business. Let us look at a few things that every new trader/retailer should consider, carefully, before making your first purchase. We will not look at these factors in general considering we had looked into the general factors in our last session. I would like to focus on the purchase itself, assuming that the trader has already considered the factors we discussed last time;
1. Know the size of the bale you need to buy
Mtumba clothes come in bales of different sizes ranging from 45Kg to 100Kg. These bales differ even in prices. It is therefore important to know the size in weight of the bale you need. As a beginner, I would recommend that one starts with the 45kg bales at least for the first one. Why?
At times bales, even first grade ones, do come with substandard quality. In such cases, you are more likely to make a loss. Most beginners do not have much capital and this means they do not have much room for a loss. In that case, you need to ensure that in the event that the bale is of poor quality, you can manage the loss and still have capital to buy the next bale.
2. Know the brand and ask around.
Different distributors brand their bales differently. However, most companies will ship same bales in terms of weight and size. Having said that, it is important to note that the quality of the clothes is not the same across the board. This means that not all grades are the same across the board. Company A’s grade 1 and 2 might be very different from Company B’s grade 1 or 2. In most cases, experienced traders will know particular brands that do not or do meet profit friendly standards. Asking around helps you to know which brands to go for and which ones to avoid.
3. Start small
Sometimes especially when a beginner has good capital and can afford to buy a number of bales, he/she may be lead to believe that volumes equals profit. It is crucial to consider that even after doing market research and understanding the socio-economic status of the target market, there still exists room for error. In the event the market fails to respond to the trader’s products as expected, you need to ensure that you have room for change. Example; Assuming, after market research I settled for children winter wear. I asked around and settled for brand ‘X’ and since I had a considerable amount of capital, I bought ten bales of the brand. Upon opening, I realized the quality was not as advertised or my intended customers did not like it. As a result, I have to change the brand but cannot do so quickly enough since I have to clear the ten bales which would take me ten times the time it would have if I had started with a single bale or two. In case of a loss, it still would be ten times more than I would have lost had I started with one bale.
4. Visit the market physically.
Unless under unavoidable circumstances, it is better to visit the market physically on your first purchase. This allows you to capture the feel of the market and the nature of the business from a daily routine perspective. By doing so, you get to; learn how the stores look like, meet the wholesalers and talk to them one on one, perhaps enter a few stores and see different brands, know how bales are transported from the store to the client outside the market, transport charges etc. Experience has taught me that there is a lot you can learn by physically availing yourself at the market place as opposed to purchasing over the phone. You also get to confirm that the person you talked to over the phone indeed has a physical store.
5. Resist fear
Once all the above are observed, it is time to go ahead and do your purchase. At times fear of the unknown holds people back even when the risk is calculated. You have to start at some point so the earlier, the better. Now, go ahead and do your purchase...
LUKU WEAR wishes you every bit of success and growth. As always we are open to receive your calls for order as well as any mtumba business related enquiries through our business line +254 787 820821
Until our next session..Cheers!
