Preorder vs. In-Season: How to Protect Margin & Cash Flow
Why you need both
Preorders lock allocations and pricing; in-season buys chase winners and events. The right mix preserves cash while protecting key deliveries.
A simple 60/40 framework
60% Preorder: Key deliveries, core programs, proven categories (denim, knitwear).
40% In-Season: Trend hits, weather pivots, social-driven demand.
Margin protection tactics
Preorder discounts: ask for line-level or volume incentives
Ship windows: stagger drops to spread cash outflows.
Cancel clauses: negotiate for late, not-as-shown, or full-size-run failures
Cash flow guardrails
Use a rolling OTB: reserve 15–20% monthly for in-season.
Time major invoices 7–10 days after pay days/weekends when foot traffic is highest.
Push high-ticket deliveries to early pay cycles.
Indicators to shift mix
Warm fall? Cut outerwear reorders, push cardigans and knit sets.
Viral denim fit? Pull budget from slow blouse silo and chase that fit.