Everyone talks about factory-direct pricing, but most new brands unknowingly pay 20–50% markups to agents and trading houses. The goal is simple: pay for fabric, labor, and logistics—nothing else. That requires knowing who is in your supply chain and choosing partners with true production control.
1) Why the middleman model kills margins
Traditional paths stack costs: a sourcing agent contacts a trading house that finally contacts a factory. Each layer adds commission and slows decisions. By working with an end-to-end manufacturer and sourcing studio in Bangladesh, you bypass extra layers and keep pricing tied to real production costs.
2) The myth of the "small brand" barrier
Many startups assume big factories won't talk to them, so they accept middlemen. While mega-factories may need volume, dedicated studios like Selvyna Atelier are built for emerging brands: we run our own production lines and maintain direct mill relationships so you get big-brand pricing on small-brand orders.
3) How to spot a middleman vs. a direct manufacturer
- The middleman: Shows thousands of unrelated items (socks to winter coats) and says yes to every category without specifics.
- The direct partner: Specializes in defined categories (e.g., women's knitwear and wovens), can show live video of cutting, sewing, and packing, and explains machinery and MOQs by style.
4) Hidden savings: vertical integration in Bangladesh
Factory-direct pricing is more than labor. A vertical supply chain sources yarn, fabric, trims, and dyeing locally—no extra international freight on raw materials. In Bangladesh, proximity to mills cuts lead time and reduces base cost per garment compared to regions that import fabric from abroad.
5) don't trade quality for price
Chasing the lowest quote via middlemen can backfire when factories are squeezed: cheap thread, weak zippers, skipped finishing, or missing inline QC. As direct manufacturers, we set and enforce standards—from thread counts to AQL, from seam strength to final pressing—so cost savings never erode quality.
Calculate your savings
Example: Premium organic cotton hoodie retailing at $65.
- With middlemen: Landed cost $18.00 (margin ≈ 72%).
- Factory-direct (Selvyna Atelier): Landed cost $12.50 (margin ≈ 81%).
- Difference: $5.50 saved per unit; $5,500 extra profit on 1,000 unit's.
Why brands work factory-direct with Selvyna Atelier
- Direct production control: Own lines in Bangladesh with transparent cost breakdowns.
- Mill access: Fabric and trims sourced locally for better pricing and shorter lead times.
- Flexible MOQs: Low starting MOQs (100–300 unit's) with the ability to scale.
- Quality-first: Inline QC, AQL standards, and final inspections—no shortcuts for price.
- Clear communication: One point of contact with photo/video updates from cut to pack.
Bottom line
In a volatile cost environment, the fastest way to protect margin is to remove unnecessary layers. Go factory-direct: keep pricing tied to production realities, maintain quality control, and reinvest the savings into marketing and growth.