The Inventory Trap: Why “Lower Price per Piece” Can Kill Your Cash Flow

In my 20 years, I’ve seen more brands fail because of too much inventory than not enough. A factory might offer you a deal: “$5 per shirt if you order 1,000 pieces, but $8 per shirt if you order 200.”

Many founders take the $5 deal to “save money.” But if you only sell 300 pieces, you haven’t saved $3,000—you’ve buried $3,500 in unsold boxes.

The Hidden Costs of Overstocking

When you buy more than you can sell quickly, you aren’t just paying for the fabric. You are paying for:

  1. Storage Fees: Warehousing isn’t free. Every month those boxes sit, your profit margin shrinks.

  2. Dead Capital: That money is “frozen.” You can’t use it to design your next collection or pay for marketing.

  3. The “Old Season” Discount: Fashion moves fast. In six months, you’ll have to sell those “cheap” $5 shirts for $4 just to clear the space.

The CdGarment Strategy: Agility Over Volume

At CdGarment, we encourage our partners to focus on Inventory Turnover. We specialize in mid-range production runs that allow you to:

  • Test the Market: Launch a smaller batch, see which colors sell, and then re-order.

  • Reduce Risk: It is better to sell out and have a “Waitlist” (which builds brand hype) than to have a garage full of unsold stock.

  • Maintain Freshness: You can pivot your designs more frequently to stay ahead of trends.

Inventory Strategy-Agility Over Volume
Inventory Strategy-Agility Over Volume

Simple Insight

Profit isn’t made when you buy the garment; it’s made when you sell it. 

At CdGarment, we help you find the “Sweet Spot” between unit cost and inventory risk, ensuring your cash stays liquid and your brand stays healthy.