Firstly, you need to understand that the margins in this business are not large. We make tiny margins from our retailer (or wholesale) business, and they make much smaller margins than is normal in retail clothing. So when we work out costing and pricing, we have to juggle these 3 dynamics 1) Does the wholesale price make it worthwhile for us to sell? 2) Will the retail price be acceptable to the customer? and 3) Will the retailer make enough money at those wholesale and retail prices to make it worth his or her while stocking the product. Sometimes, it is simply impossible to get a yes to all 3 of those questions, if that happens, we either do not stock the product period, or we do not offer to retailers.
Retailers are a vital part of our business because they spread the love and expand Iron Hearts physical presence. But as a stand-alone business, it would not be viable, the margins are too small. None of our retailers carries more than 20 or 30% of our SKU's (Lot numbers or unique products), so we see the retailers in some way as fuelling demand for the products we sell online, which is where we make a more acceptable margin. Look at it this way, someone goes into a retailer, buys some IH, falls in love with it, Googles Iron Heart and finds IHUK. The weekend that Mildblend launched Iron Heart, we got 7 direct orders from the Chicago area, the same weekend. I'm certain that was not a coincidence.
All business outside of Japan comes through IHUK, many retailers have unique products or collaborations, they all come through us. The majority of retailers like IHUK to sell their collaborations because typically we have a greater reach than them, so they see us selling their product as a way of reaching an audience they could not or would not touch, that is why for instance we carry most of the Pronto collabs.
All retailers are treated the same, we do not have contracts with any of them and they all pay the same price for product nevermind what their volumes are. I want them to stock and sell Iron Heart because they want to, a signed piece of paper makes no difference. However if they do things that they should not, like dump stock or have frequent sales which undermine other retailers, they just don't get supplied again. We're a family and I won't have some black sheep wreck things for everyone.
Finally, I have no contract with Haraki. It's simply not needed.
