Disappointment after disappointment

Remember the company we spoke about in our lasts newsletter? The one that was going to allow for low MOQ production. Well, there's some good and bad things to discuss.

The good news, is that we did end up doing some business together, and we finally got some products in production. A few t-shirts, hoodies, and some shorts. Unfortunately, before long, also they came back to us to let us know the Polos were a no go. And that, ladies and gentleman, was the disappointment after the disappointment.

Here's a paragraph from one of the last email exchanges: "The knit styles production is now subcontracted to our partners specialized in these fabrics, however they request a minimum of 200pcs/style. I know that is quite difficult for you but despite all efforts to get flexible MOQs I am afraid that is not possible."

These guys really built us up, to then shoot us down

As with all of them, communication wasn’t smooth sailing either. We constantly had to write and ask for updates, it was pretty poorly managed and slow. Professionalism continues to be hard to find in the Portuguese textile industry. Although we do want to believe that if you came with a reasonable budget to an established manufacturer in Portugal, they would give you the time of day.

In our case, we have to make them believe in our project, really sell it to them, to even get the slightest amount of attention. Obviously, the numbers we're doing won't render a lot of margins on their end, so we do understand the treatment, but it's not really about this first order though, it's about the potential of the brand and setting up a fruitful, long-lasting relationship.

With the one order we did do with this supplier, we also realized that our company registration (currently set up in Estonia) would mean they have to add 23% VAT on top of all orders, as the goods are not leaving Portugal. After discussing this with our accountant, while there are options, getting the VAT back in Estonia turns out to be a long process and is only really worth it for large amounts. Starting a clothing company in Europe, especially without capital, appears to be roadblock after roadblock.

So yeah, once again, we would have to restart the process of finding a possible supplier. But hey, at least we have some goods in production which we will unveil in the next post, so keep a lookout for that one 👀