Distributor vs Factory-Direct Pricing
Traditional distributor sourcing adds multiple layers of markup. Factory-direct sourcing removes intermediaries, giving UK boutiques better control over cost, margin, and replenishment.
Margin Comparison Example
| Sourcing Model | Cost Price | Retail Price | Gross Margin |
|---|---|---|---|
| Distributor | £45 | £95 | ~52% |
| Factory-Direct | £28 | £95 | ~70% |
Why UK Boutiques Are Moving Factory-Direct
- Higher margins without constant discounting
- Smarter inventory control
- Faster response to fashion trends
- Direct communication with the manufacturer
Small-Batch & Limited Drops Advantage
Factory-direct sourcing allows boutiques to order smaller quantities, test demand, reduce dead stock, and create exclusivity through limited collections.
