Planning a Budget for a First Stocklot Purchase
The direct answer: a first-order budget is mostly the parts that are not the garment. The invoice is the visible number, and it is frequently less than half of what the shipment will actually cost you once samples, inspection, freight, duty and clearance are added.
Part of the buyer journey: Start Small: First Business, First Lot, First Season — stage 5 of 8, with the other guides for this stage.
The costs that are always there
Samples and courier, inspection if you use one, freight, insurance, duty, brokerage and inland delivery. Each is individually modest and collectively substantial. Model all of them before you commit, using a written estimate from a forwarder or broker rather than a guess.
Add a contingency for the costs that only appear if something goes wrong. Storage, demurrage and relabelling are the common ones, and they arrive at the worst possible moment.
The cost that is hardest to see
Unsellable units. If the lot is 80 percent first grade, a fifth of your inventory is not sellable as new, and you paid for all of it. That is not a contingency, it is a permanent feature of the lot, and it belongs in your budget.
Likewise sorting labour, whether you do it yourself or pay for it. Both are real costs that beginners almost never price.
Keeping the reserve intact
Set aside the reserve as a separate amount and do not plan to spend it. The reserve is what lets you absorb a delayed shipment, a demurrage charge or a second small purchase of a better lot without pausing.
Buyers who commit the whole budget to the first lot have no option left when a better lot appears in week three, which is usually when the good ones appear.
What stocklots are available right now?
Reading is step one. Send your requirement and we will check the factory network for current options.
Buyer questions, answered
What percentage of a stocklot should I assume is unsellable?
Whatever the seller’s grading says, minus a realistic margin. Sellers typically grade optimistically because grading is how they price. If the claim is 90 percent first grade, assume something lower and check it on a small sample before you rely on it.
Do I need to budget for tools and equipment?
If you are selling online, no. If you are packing, labelling or grading yourself, then yes, and the basics are inexpensive. The larger hidden cost is your own time, which should be counted if you are also running other work.
Should I keep a cash reserve between orders?
Yes, and it should be larger than most buyers plan. The reserve is what allows you to buy when a good lot appears rather than only when cash has accumulated by chance, which is the difference between choosing lots and taking whatever arrives.