I just received a request about my handmade crafts. I currently
only have one of these necklaces and have been asked if I will
consider selling wholesale. I am really not sure what this would
entail, any advice much appreciated. Regards, Violet
What a great question and opportunity for you!
Selling wholesale is a perfect way to sell your products and
create a profit. Some of the many advantages are:
(1) You make to order knowing the products are already sold
(2) You sell more than 1 item at a time and your production is
(3) There is a potential for re-orders and developing an
ongoing relationship with a store
(4) Make one set of samples and take orders from showing that
(5) Batching your orders for raw materials so you can purchase
everything you need wholesale at a better rate.
There are also many other advantages - and in my
opinion the best and fastest way to grow a profitable business
is to sell items wholesale.
Here is an article I wrote that may help you with the sales part
of selling to a store:
15 Quick Tips For Selling Products to Stores
You will need to price your product correctly for selling to
stores, since they will at least double your price for selling
to their customers (and usually slightly more). This may take a
little research on your part to come up with a good price.
It is best to start with your cost of goods.
This is determined by adding up all of the costs involved with
making your product. In your case it is necklaces.
Create a spread sheet and write down all the materials in the
necklace, such as beads, clasp etc. and determine what your
costs are per unit (please bear in mind that you need to know
the wholesale costs). So if you use 10 beads at $1 wholesale
each then your cost for beads is $10. Once you have all of these
items - go back and make sure you add in other costs involved
such as shipping charges that you paid to get the materials.
Next you want to pay yourself or someone else for labor. If you
are making the necklaces yourself then you need to determine
what you would have to pay someone else to make the necklace. DO
NOT leave this blank! Some people do not think to pay themselves
and this must be included in your cost of goods.
Your cost of goods will be your starting point for determining
your wholesale price.
There is no exact formula. You will need
to do research to determine how much a necklace similar to yours
will sell for in the retail market. To understand this you need
to look at similar products and go shopping. You may already
think you know this - but it is important to get a fresh point of view
because of the changing economy and perceived values.
Think how prices in the real estate market are based on
comparable home prices. You will be looking for comparable items
in your market.
Now that you have all this information make a decision about
what your wholesale rate is going to be - working backwards from
the RETAIL price. For example - if you find other necklaces
similar to yours that are retailing for $85 and you know that
the retail store would have to be able to purchase it from you
for no more than $42.50 (and maybe less) to sell at the $85
price - and your cost to make the necklace is a total of $20
then you know that you could easily sell it to the store for $40
and everybody wins! On the other hand if your costs to make the
necklace are $60 then you either have to get your raw materials
for less or change the style or decide not to make the piece.
I hope you have found this helpful. Please sign up for my free
report and my newsletter as I think I have lots of information
that will be helpful to you as you continue building your
Love and Success,
For More information about this subject
and much more about creating your Design 2 Market Success
business we invite you to join our
Beyond Etsy Coaching program which is a great way to begin
selling your handmade and other products wholesale
© 2009 Jane Button International Design2Market Success
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