Factory-Direct vs Wholesale Sportswear: Which Saves More for Bulk Buyers?

When it comes to buying sportswear in large quantities, whether you're stocking up for your gym, building a sports team, purchasing for a retail store or an up-and-coming activewear label you might run into one of the same two questions: Should I buy from a retailer or should I buy factory-direct? On the surface it seems like an easy question to answer (either option will offer great pricing) however the way that these two ways to purchase are actually priced and what goes into producing the products are drastically different (often resulting in a very different price point).  Today, we are going to discuss how to actually compare factory-direct prices and wholesale prices on sportswear so that you can make a more informed purchasing decision.

What Does "Factory-Direct" Actually Mean?

When you purchase sportswear factory-direct, it means you are buying directly from the manufacturer (no middlemen), giving you not only a lower price but also more choices than you'd have if you purchased from a distributor. The way this works is when a factory makes a piece of clothing, it sends the finished garment directly to you.

The main benefits of purchasing factory-direct include:

• Reduced cost per unit since there are no distributor profits involved
• Custom options such as private labels, custom cutting styles and tags with your brand name
• Increased quality control because you'll have more direct access to the manufacturer
• Increased MOQs (minimum order quantities), meaning manufacturers usually require very large orders to fill (most require anywhere from 500 to over 1000 pieces depending on the style).

Factory-direct is best for established brands, large gyms or companies needing to order large quantities of the same item with their own brands consistently.

What Is Wholesale Sportswear?

When you purchase wholesale sportswear, you're basically selecting items that have already been purchased from a manufacturer by an intermediary distributor or supplier. They sell these in bulk to retailers and other businesses at a higher cost than what they paid for them, but still at much lower costs than you would pay at retail.

Some key benefits of buying wholesale sportswear include:

• Very low MOQs (Minimum Order Quantities) — often as low as 12 to 50 pieces per style.
• Products are in stock and available for immediate shipment (no lead times for product to be manufactured).
• Many brands and styles are stocked at one location.
• You have a chance to test new styles or segments before investing heavily.

Purchasing wholesale sportswear is perfect for smaller businesses, new businesses and/or people who want to have flexibility and fast turnaround.

Cost Comparison: Where Does the Real Saving Happen?

Here is where things get interesting. Let us break it down honestly:

• When it comes to pricing, purchasing factory-direct gives you the lowest unit price as long as you're able to meet the minimum quantity purchase and have enough lead time. If you purchase more than what you need, or have a long lead time, you could very quickly lose money due to inventory being tied up as a result of those purchases.
• When buying at wholesale, although you will be paying a slightly higher price per unit, the flexibility and the ability to receive your orders more quickly can more than offset that cost in the form of a larger margin.

So, Which One Actually Saves More?

Realistically, the answer to this question varies based on your goals and volume.

• If you're ordering large volumes (1,000+) on a regular basis with a desire to have custom-branded sporting apparel then factory direct sourcing would provide the most benefit in terms of lower cost per piece.
• For smaller, prototype-style orders (<500) or needing products quickly, wholesaling is typically going to be better also because of the lower risk involved.

Most of the bulk buyers (and I've found) buy staples in high volume from the factory, and use wholesale when they need to plug gaps and/or test new categories/products.

Conclusion

When considering a supplier to work with, it is critical that you partner with one that has an understanding of what your business requires and can provide you with consistent quality as well as the ability to deliver those products at scale. At SAS Apparels, we offer bulk buyers the best of both worlds: competitive pricing for large orders, the ability for you to request custom orders all the time, and sportswear designed to perform when we deliver it. Before making your next large purchase, check to see if your supplier has the same level of commitment to your success as you do.