Factory-Direct Pricing Explained
Factory-direct pricing means you buy closer to the source — without unnecessary reseller layers. This page explains what changes between factory-direct and reseller pricing, what influences unit cost, and how wholesale buyers can plan orders for stronger margins and repeatability.
What “factory-direct” means in wholesale
“Factory-direct” is a supply chain shortcut: you purchase from the manufacturer (or very close to it), rather than through multiple trading or reseller layers. The outcome is typically better pricing and clearer control over quality, timelines, and repeatability.
Factory-direct supply
Factory pricing + production visibility + consistent specifications.
- Direct manufacturing cost base
- Clearer QC and construction standards
- Better support for repeats and scaling
Reseller / multi-layer supply
Additional mark-ups, longer lead times, and less clarity on build and QC.
- One or more margin layers added
- Less transparency on manufacturing details
- Specs can vary between batches
Why factory-direct pricing is often 30–50% lower than reseller pricing
The biggest difference is not “cheap labour” — it is the removal of stacked margins, duplicated handling, and unnecessary overheads that appear when a product changes hands multiple times before it reaches a retailer.
- Reseller mark-up: each layer adds margin to cover operating costs and profit.
- Repackaging and re-labelling: additional processing increases cost.
- Fragmented buying: lower volume often means higher per-unit costs.
- Repeated sampling: intermediaries can add time and development costs.
Main cost drivers that influence your unit price
Factory-direct pricing still varies by style and specification. Below are the practical factors that most impact unit cost on wholesale corsets.
| Cost driver | How it affects price | Buyer tip |
|---|---|---|
| MOQ & order volume | Higher volume usually reduces per-unit cost due to efficiency. | Start with core best-sellers, then expand assortment after sell-through. |
| Fabric & trims | Premium fabrics, lace, hardware finishes, and embellishments raise cost. | Use hero trims on top SKUs; keep basics lean for margin stability. |
| Construction complexity | More panels, detailing, and finishing steps increase labour time. | Balance statement pieces with repeatable core shapes. |
| Boning & hardware | Steel count, busk type, eyelets, and closures affect both cost and durability. | Specify consistent boning standards for predictable reorders. |
| Packaging & branding | Private label tags, packaging, inserts, and barcodes add cost. | Standardise packaging for scale; customise only where needed. |
| Lead time & scheduling | Rush timelines may affect costs depending on capacity planning. | Plan seasonal buys early for better production windows. |
Margin planning for retailers (simple pricing logic)
Wholesale buyers typically optimise margin by building a tight core assortment with predictable sizing and repeatable best-sellers. From there, they add higher perceived-value pieces that justify premium retail pricing.
Start with a core assortment
Build repeat orders using your most reliable silhouettes and fabrics.
- Repeatable shapes and size consistency
- Stable fabrics and trims
- Lower returns and easier forecasting
Add hero pieces for upsell
Use statement trims and detailed designs for premium retail positioning.
- Higher perceived value
- Seasonal capsules and drops
- Higher basket value opportunities
FAQs
Is factory-direct always cheaper?
What is the most important factor that lowers unit cost?
Can you support private label pricing?
How do I access wholesale prices?
Corset Wholesale Ltd — factory-direct wholesale pricing built for global B2B buyers.
Related pages: How Corsets Are Made, Certifications & Compliance, Private Label & OEM.