The Hidden Risks of Pre-Sales for Small Brands and Why They Should Avoid This Approach

In the competitive world of small and emerging fashion brands, pre-sales can seem like a simple solution — a quick way to secure funding, gauge customer interest, and validate a new idea before committing to production. Pre-sales should occur during the cut and sew phase of the brand, right before you're ready to ship. This approach prevents excess inventory, provides customers with the exclusive experience of receiving the product first, and helps with promotion. Additionally, it ensures there is some stock available for new customers, reducing stress for everyone involved.

But what often starts as an exciting shortcut can turn into a complicated maze of production issues, fabric sourcing challenges, and financial strain. From our perspective as a textile manufacturer, we’ve seen how pre-sales can create more problems than they solve. Here’s why it’s worth thinking twice before taking that route.

The Fabric Dilemma

When brands launch pre-sales, they often have a sample ready but face challenges with fabric availability, which isn't guaranteed. Many mills require minimum order quantities that small brands can't meet, making it difficult to produce limited runs with in-stock fabric. Often, the fabric used in advertisements becomes unavailable, forcing brands to find new suppliers with high minimums or start sampling new fabrics. This situation frequently leads to stock shortages, causing delays, higher prices, or the need to choose different fabrics. This isn't a sales tactic; it's about growth for both the brand and supplier. Even a few weeks between sampling and production can result in color sellouts, dye lot variations, and shifting lead times, creating costly and time-consuming issues. Committing to a fabric that becomes discontinued or more expensive can force brands to refund customers, lose credibility, or absorb costs, impacting profitability for small brands.

Production Challenges

Pre-sales also make it difficult to accurately predict how much fabric to order. Overestimating demand can leave you sitting on expensive inventory, while underestimating can cause delays and disappointed customers.

A common example: a brand plans to sell 200 pieces, sells 100 during pre-sale, and then labels the item “limited edition.” They last minute cut their fabric order, and production order in half. Their cost go up because their suppliers quoted based on 200 pieces not 100 pieces. It still take the same amount time, and resources. Instead they should stick with the 200 pieces remove the "limited edition" and have 100 pieces to gain a new following.

The Cost Factor

Pre-sales can also shrink margins faster than expected. Below minimums often requires paying premiums on small runs, freight, cut and sew and dye costs. Minimums are not to punish brands, it the minimum amount the people need to make in order to give you the best price and keep the lights on. It cost the same for them to make the product from employees, rent, and utilities. In some cases, brands that expect $10,000 in pre-sale revenue might end up needing more than that upfront just to start production.

This creates a cash flow squeeze — funds are tied up, production stalls, and communication with customers becomes stressful. For small businesses trying to build trust, those bottlenecks can be especially damaging.

The Risk of Delays

Every manufacturer knows that delays happen — whether it’s a backordered fabric, a color correction, or a production hiccup. Pre-sales magnify those delays because customers are already waiting.

A fabric that’s out of stock for two weeks can shift an entire production schedule. Missing a launch date or shipping window can mean lost sales and disappointed customers, two things no new brand can afford.

The Financial Risk

While pre-sales can seem like a smart cash management move, they often lead to financial instability instead. Between fluctuating fabric availability, high upfront costs, and shifting timelines, brands can easily end up in a position where they owe more than they’ve earned.

Studies have shown that nearly 60% of small brands relying on pre-sales struggle to stay in business long term — not because of lack of creativity, but because of operational and sourcing risks.

Exploring Better Strategies

Pre-sales aren’t the only way to launch a collection. Many successful small brands find better long-term stability by:

• Building limited inventory upfront – Start small, produce what you can fulfill, and build from there. This approach keeps quality consistent and eliminates unnecessary stress.

• Testing the market without pre-sales – Use social media, email lists, or pre-launch waitlists to gauge interest. You’ll still get valuable insights without the production risk.

• Working with your manufacturer early – Open communication helps you understand fabric minimums, lead times, and options for in-stock materials before you commit.

At Greene Textile, we always encourage new brands to plan production based on what’s available and sustainable, not just what’s aspirational.

Final Thoughts

Pre-sales might sound like a clever growth strategy, but in practice, they can create unnecessary pressure for small brands still finding their footing.

By prioritizing inventory management, sustainable sourcing, and thoughtful growth, brands can protect their reputation and build long-term success — without the financial and operational stress that often comes with pre-sales.

At Greene Textile, we believe in helping brands make smart, informed choices that support both creativity and stability. Because a strong foundation today leads to sustainable growth tomorrow.