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I recently received this email from a follower who has been making one of a kind items herself and was offered the opportunity to expand. This is a perfect question, especially for those of you who are ready to take your items to the next level where you're taking your craft and turning it to profit.
 
Dear Jane:
 
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, Violetnecklaces
  
Dear 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 more efficient.
(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 set
(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 business.
 
Love and Success,
 
Jane
 
Jane Button
www.Design2MarketSuccess.com
 
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

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Online creative product mentor Jane Button publishes "Design 2 Market News" weekly ezine packed full of with tips to help make you money from your Sewn or Knit Product, Design, Gift, or Craft Business. If you're ready to take off the training wheels and turn your creative passion into a profitable business, get your FREE tips now at www.Design2MarketSuccess.com
 

 

 

 

 

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