What is the hang up on hangers? Think Tank written by Apparel Search

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What is the hang up on hangers?

The world of apparel has several hundred Hanger manufacturers.  Yet, the large retailers insist that we purchase from only a handful.   Where is the justice? 

Basically, the large retailers are providing the hanger company with carte-blanche (unconditional terms).  If we are forced (required) to purchase hangers from company X, how do we properly negotiate price.  For all intensive purposes the conversation goes as follows:

Production manager
:  We have a large order for Retailer Y and we would like to purchase 100,000 hangers for June 15th delivery.  How much will the hangers cost per 1000 units (including size tabs).

Hanger company X:  The hanger cost is $120.

Production manager:  Our factory in China has a resource that can produce the exact same quality hanger for $105.; can you match their price?

Hanger company X:  Sorry, we have set pricing; with no room for negotiation.  The cost must remain $120.  In addition, we cannot deliver on the date that you have requested.  However, we can delivery some time that month.  By the way, is your factory on the approved vendor list for
Retailer Y
???

I think we all know the answer to that question.  Obviously, the hanger manufacturer understands that you are not free to explore other opportunities.   Therefore, they have you by the you know what

By the way, does the Retailer select the factory that you use to purchase the plastic swift tack for attaching price tickets?  Do they select the factory in which you purchase your thread?  If no, why do they tell you where to buy the hangers?

If you are providing proper quality, you should be permitted to purchase from the factory of your choice... 

Written by Apparel Search 5/15/01

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