Typically, a percentage ranging from 40% to 50% is added in clothing stores in Mexico. This means that if you sell a garment for $500, approximately $200 to $250 is profit before subtracting operating costs.
However, these percentages are just a guideline. Some clothing stores may have much higher profit margins, especially on exclusive or seasonal products. On the other hand, in the case of second-hand clothing or wholesale sales, margins may be lower.
To determine the most appropriate profit percentage for your business, we suggest considering the total costs associated with selling your clothing, your competitors' prices, the whatsapp screening perceived value your customers are willing to pay, and your business goals.
Read more: How to define the selling price of a product?
2. Create your brand
Once you've decided what segment you want to target, it's time to create your brand . Have you thought of a name for your business? If you have no idea what to name it, we have a free brand name generator that can help you get an idea of what to name your business.
Some tips I can give you to create your clothing brand are:
Choose a short and impactful name.
Make it easy to pronounce and remember.
Consider what message you want to convey.
Evaluate how good it sounds out loud.
Check its availability in Marcanet, the IMPI trademark collection.
3. Find your supplier
Having a reliable supplier is one of the greatest resources of an entrepreneur. Knowing who to work with, what prices they have and what quality of product they deliver is essential for your business to grow. Here I list some of the most common clothing suppliers that you can partner with to strengthen your business.
Garment factories
Mexico is one of the countries with the largest production of clothing in the world. There are large factories that export clothing, as well as smaller factories that supply hundreds of businesses and boutiques in Mexico. If you are looking for clothing suppliers and factories to work with, here are several options.
Read more: Where and how to find clothing suppliers in Mexico?
Bale or second-hand clothing
As I mentioned at the beginning, second-hand clothing is a highly profitable business. The value lies in choosing the garments and knowing where the profit is in this type of clothing. In Mexico there are many places where you can supply your business and find the ideal supplier.
Clothing by catalog
You can also find clothing suppliers that work through catalogs or specific collections. The purchasing process through these catalogs is by choosing the models that interest you the most or that you think offer the best return on investment and then placing the order through their sites or through a sales consultant.