Big stores demands for guaranteed profit margins!

This is the time of year when the big stores, I don't have to name them but you all know who they are (one starts with the letter M), ask for money back from their vendors if the vendors' product sales did not meet the store's internal profit margins, after markdowns. If the vendor does not pay the difference, the store will threaten not to carry their styles the following season. However, there is no guarantee that they will even carry the styles the next season anyway. Many times it is not the fault of the vendor that their styles did not sell thru all to well especially if the big store did not merchandise it well, kept it in their store warehouse too long before hanging and other, like poorly trained sales clerks. What is a young and small vendor to do when their already stretched thin and need all the cash they can muster to make new collections for the next season. This is the biggest dilemma any new and young vendor has when dealing with the majors. The majors all say in public newspapers and magazines that they support new designers, but in reality they really don't. Only those funded / backed by deep pocketed financiers who can pay to play in the big stores game! I would like to hear from others who have faced the same situation.

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Big stores demands for guaranteed profit margins!

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