Re: Financing, Import & How to be profitable in Used Clothing Business

For more then 20 years I have been in import-export business for hundreds of items including Used clothing to Africa. While everybody wants to get into this business in many African countries. It see, finance is always the problem. At the end it turns out to be loss of valuable time for all involved. Time is money too ! so the bottom line is......... Most who wants to do this business have no money to import or pay for the clothing, shipping and import charges.

Some who do have money, get in this business in a hurry without any planning, just to make quick profit also loose money. Because, they don't do the home work.

My advise to all those with money to import and get in this business is to do planning first. Remember, in any business, you make money when you buy it and have the total landed cost as low as possible. Please also don't forget to add interest rate on the money until goods are sold as well as almost 5% to 10% wastage clothing or unforeseen expenses.

(1) Buy First quality mix used clothing already sorted in big bales that is 1200 to 1500 pounds each.
(2) Have a place in your country to sort out items from these huge bales, like men's shirts, women's dress, blue jeans, girls clothing, boys shorts etc.
(3) make your own 50 to 100 pound bale/sacks individually.

This is the only way your cost will be the lowest and you will be able to rapidly develop your business.

Remember your landed cost after local sorting should not be more then 55 cents per pound or $1 per Kilo. For example 4 men's shirt is 1 Kilo and $1.00 is your total cost. How much is cost of 4 good men's shirt in your country? and how much can you sell them for?

That is why it is very important to deal with a reputable person that you can develop trust. Problem is, in used clothing business. Many good dealers that export to Africa have higher price. because, they sort these goods in their own facility and pay big labor cost. That is why they have higher cost. Then there are some dealers, who will sell you rags (trash) and you will never see them again.

Those with no money and want to get in this business should talk to banks in Africa that issue international letter of credit (L/C). Provide some local collateral. Request bank to open and confirm letter of credit with their correspondence bank regarding payment provision of 90 days after shipment. This will give you some time to sell the good and pay back the money to the bank with some interest they charge.

Obviously, local bank must trust you beside some kind of local collateral of land, home or other assets. Before, they will issue a letter of credit on behalf of you to import. But remember, once you complete the first transaction, your door with bank opens up, and slowly, you can buy goods worth millions. As long as you pay the bank back on time.

So helpful information, Danny.
I appreciate your time.

hi :

We are the used clothing facotry from shanghai in china ,Need sample picture and price pls contact mark@yxstcb.cm

Hey Asif-

I looked for you after registering here. I am a tad apprehinsive of putting my email on here so I hope you can reply with out it. I am Wayne and looking for a little help getting in the business here in America.

Is it possible to figure out a way to speak ?

Wayne

You are welcome in Burkina Faso.
golden.market@live.fr

Dear Sir,
Very correct for the used clothing business .
We agree with you for what you said in your article.
Even in China there are bad dealers in used clothing spoiling business.
So we are only used shoes now.So if you need used shoes could contact with us.
For used clothing if you need any advise we offer it for free.
Even other business you want to start if we know we will give suggestions for free.
Most important is used shoes business......
HongTai
HTshoes@yahoo.com

Thank you

We now have around 20,000 pc sport man shoes short in size with high quality reasonable price.welcome to contact us for more detail
jasmine:0086-13316161465
info@kingiway.com

kindly email me details via vanco1988w@gmail.com