The business of buying houses is a profitable business. Many of us have the desire or the money to do this business. But the mechanism is not known. After knowing that mechanism you can start this business, then that business can be successful.
Those who order clothes in garments from abroad do not contact any garments directly for order them. They order it at various buying houses. Buying House is an organization that takes orders from various clients from outside and inside the country, then makes those clothes near Garment and then supplies it to their clients. You can tell this is a third party.
Buyers from abroad do not usually interact directly with any manufactured clothing industry. They choose a third company to buy the product. The agreement between the two sides is based on negotiations. As per the agreement, the domestic company undertakes all the duties of supplying certain products as per the demand of the buyer. These institutions are the buying houses.
The job of the garment is to make clothes and the buying house is to send orders to the garment from the client. There are many garments that have their own buying houses and they also collect different orders from outside buying houses. Those who do the business of buying and caring for everything in the buying house are also called merchandisers. A merchandiser must also know indirectly about the work of dress delivery and quality control according to the order, to see if the product is manufactured and standardized by the buyer.
Buying House is a kind of export-oriented garment industry business. The business we call 100% export oriented business. Here the word “buy” means “buy”, and the word “house” is used in a business sense. Buying House is a business company that operates as a base of trading. The main function of the buying house is to communicate with the buyer and negotiate the order. And finally when the order is confirmed, then it is the job of the buying house to execute the order and ship the order. When the order comes to the factory by the hands of the buying house, the buying house supervises, leads, looks after all the work from the beginning of the order to the end. Who’s the Bayer is a foreigner, cannot make contact or care from abroad. Because of this, the Buying House often acts as a representative or agent for a foreign buyer. It is the main responsibility of the buying house to confirm the quality or quality of the product that Bayer wants.
Buyers from abroad do not usually interact directly with any manufactured clothing industry. They choose a third company to buy the product. The negotiations between the two parties are based on the agreement between them. As per the agreement, the domestic company undertakes all the duties of supplying certain products as per the demand of the buyer. These companies are the buying houses. Buying Houses has been done foreign buyers orders through a factory. This sector requires real experience in business. It is better to have working experience in somewhere or in a factory. Buying House serves as a third party. Buying House bring order from buyers and submit to the factory. In exchange, the buying house takes over the commission. Buying Houses are taking commission 5% to 7% per piece of cloth. Without a good idea about computers and garments, Buying House cannot be traded.
Feasibility and initial work to start:
Buying house business is a very profitable business and young society has a lot of interest in this business, so it can be said that buying industry can lead to industrial revolution in the country. Providing a buying house is not as difficult as it is not too easy. Now I am sharing some basic things for start buying house. Since you have a lot of work with clients from overseas, you must become proficient in English first of all. if you want to work with a particular country, then learning the art, culture and language of that country will benefit you. It is better to start a buying house with your trusted friend or together with some of your family members. In that case, sharing work with everyone will be very easy and success will be fast, but in these cases if you cannot work together and cannot choose the right people, then a lot can happen. Having a good relationship with everyone who is familiar and well-respected in the area where the buying house will be build and will easily relieve you of many problems.
What to know
You cannot give the buying house any time soon. It will take experience, skill, integrity, persistence, time keeping, and thinking of your staff. For experience you may be enrolled in various courses for Buying House, which will teach you everything at hand. For example, the cost of fabrics, the quality of the fabrics, the quality of the yarn, what kind of stitching, the net cost of the dress, which is also called merchandising, you need to know these things as well as increase the skills. Merchandising is very important in this case, if you think that you have to work with someone else then it will be a very wrong idea. Because if you do not understand your own business you will not be able to catch the mistakes of others and in this case you have possibility to cheat by others. Remember, “Experience is your greatest asset.” One needs to know details the fashion and textile of a merchandiser. Merchandising courses include Product Supply Processing and Management, Introduction to Merchandising, Textile Fiber and Yarn, Oven Fabric, Sweater Design, Textile Finishing, Printing and Testing, Pattern Making, Quality Management, Production Planning and Management, Social Compliance, Practical and theoretical education is given on design, printing, fashion accessories, fashion merchandising, textile science, color mixing, marketing, etc. Knowledge of these matters is important for working in merchandising or opening a buying house.
Process to Open Buying House:
If you want to know about the validity of this business, you need to have a valid business certificate. So apply to agency for valid certificate. Trade license must be made. Arrange for the buying house after taking office. Then recruit the manpower as needed. The main function of the buying house is to communicate with the customer. Because of this, the office will require a computer with telephone, fax, internet connection. Graduates can come to this profession in any field. If you want to do this business well, you need to be proficient in English. At the same time, it is important to know the computer. Because it is necessary to contact with the buyers through e-mail.
Function of Buying House:
- Identifying the product;
- Identify the source of the product;
- To judge and control product quality;
- Designing and developing products;
- Organizing production;
- Collecting product samples;
- Shipment of goods;
In most cases, the buying house is on a private basis. The job here is similar to that of other non-government organizations. The pay is high salary, no pension or various types of funds that are in government service.
The working procedure in buying house:
- A merchandising manager of Buying House finds buyer and sends him his profile and he is connected him.
- Then merchandising manager communicated with buyer and one day arranged a meeting.
- Then make a sample and show it to Bayer. If he like, then decide about costing.
- Then Buying’s House Merchandiser sends L / C to a good factory and lets him order to do the work.
- When the work is completed, then the buying house inspects it.
- Then, the prepared documents for shipment and sent it to the bank with a sample.
- Shipment when all of this is complete.
How the Buying House Works:
Buying houses generally work in two ways. Namely:
1) As a trading company
2) As the buying agent
As a trading company:
An example would be well understood. Suppose a buying house negotiates an order with a foreign buyer and the order is confirmed at $ 3.5. The buying house will then shift the order to a factory and at the time of the shift, it will target at how much less he can execute the order for less than $ 3.5. The less he can execute is his profit. Suppose the buying house executes $ 3 in this case, then every clothing will have a profit of .5 cents. If the buying house operates in this manner, it will be like a trading company.
As the buying agent:
The policy or system to be followed when acting as a buying agent is to make the linker with the manufacturer; like the garment factory. In that case, a commission is kept for the buying house, which can be from 5% to 10%, or it can be less or more in particular field. Buying house collected this 5% to 10% commission from the garment when the product is shipped.
Way to get buyer:
The only question for all those who are in buying house business or those who want to come is how to get a good foreign buyer? When it comes to doing business in the world market, it goes without saying how intense competitive the market is. It is true that it is important to maintain contact with the foreign trade organizations of the country in order to get a new buyer. In addition to this, I am focusing on the small range of how buyer can attract. Having a website means that people from any part of the world know about you at home. Keep in mind that a foreign buyer will get ideas about you by your website first. Then all you need to do make it easier to find your website on Google and other search engines. Do your website SEO for this. Create LinkedIn and similar Professional Network. Then keep in touch and communicate regularly. If you think your product is a garment product, then give details about it to YouTube channel. Give ads to various foreign online magazines about your buying house. Post your ads to classified ads sites. Craigslist and classified ads sites from different countries can help you to get new buyers.
There are some problems in the garment sector because we have to work with many people. Then the worker comes and goes. The buying houses have to work with the garment factory, the effect of the factory work also impacts to the buying house.
The most important things in this business are “timing” and “follow up”. Following to this matter, this business will never die and can grow very easily. In this sector follow-up is more important than the money we invest. With this, commitment is necessary then the money will come back immediately. It is very important that the key of success is to be honest. With financial support, it is easy to succeed. There must be commitments, labor and follow-up. Good behavior with staff. They have to be taught to staffs if they are wrong. The employees of the organization are much more important. In addition to the annual bonus, medical checkups, incentives, loans, employees of the organization are also given some other benefits. In one institution, the workers are the soul. Without them, the organization would not have run. There is no objection to the share of those who earn money. It helps the staff work more enthusiastically and get better results. Those who want to work in the buying house should have some idea about the garments and the work of the buying house. After starting its work, the day-to-day work must be completed daily. Then the owner will find that employee. There is one more thing – the ability to solve the task. Not just talking about problems. Solve the problem and then you have to come and say that I have done so. Is it okay? I believe he will be able to do much better if he does so. If anyone wants to build a buying house, then he has to acquire something different. Commitment is very important here because this job is to keep relationships. Relationships with the buyer need to be maintained and calculations must be correct. If a business does not have anything in hand, then it will not run. So you need to know to verify the proper cost of clothing. Apart from these, you must have a lot of ideas about garments. For this to take real experience. Then I think you must do well. The key to success is to set commitments, to be honest, to set a goal, especially in this buying house business sector. If it has, then it is possible to succeed. It is one of the brightest prospects in the business sector. In this sector future will go much more and will be a source of livelihood for thousands of people. So I think this industry needs to be strengthened. Only a few government actions can take this industry far ahead.
Your client will want to know all the information about you and will place an order upon verification. You can start looking for a client and if you have good luck and skills, you might even get the first client. Basically everyone starts working with a client before getting started.