>>84428105>There's some serious potential to make some good moneyOf course there is but it takes either experience in the trade to pull it off OR people you can absolutely TRUST with your livelihood.
Margins for products that have a production cost and stocking needs are not great if there is a chance you’ll suffer “loss of inventory”, products you make but can’t sell for some reason (defect, breakage, disputes with suppliers).
Think about it: even if you have a 100% margin and is selling a product for twice what you pay to produce it, each unit you lose this way costs its own profit and the profit of a second product whose money will be needed to pay the cost of the lost one.
With smaller margins this gets worse and it takes selling four, five products to offset the loss of one, that’s why nobody wants to either get stuck with inventory OR lose any item in any avoidable way.
In cases like Selen’s where she has to bear a significant loss of inventory (and having to purchase your own produced merch counts as that) she likely won’t break even with it.
IMO, unless you can tank these losses, it’s a much safer way just to “license” your brand for a fixed cut and bear none of the risk
