Your little craft business is chugging along nicely. But you wonder what it would take to get your business to the next level--the level where you can quit your day job and start supporting yourself with your art.
The harsh truth is that you probably won't get there without adding a wholesale component to your business. Wholesale? Sounds daunting, but it's a process like anything else in business. Once you know the steps, the rest is hard work and follow-through. To get you started, here are a few tips to help you transition from a part-time designer to a full-time wholesaler and brand.
1. Register your business. This is most important. Wholesaling isn't a hobby; it's a business. Retailers (shops, museums, etc.) that buy from you will claim the purchase as a deductible business expense on their tax forms. If that business is audited, the trail could lead right to you. So have your papers in order. Register your business and run it like a business. Most states make this easy by providing online business registration. If the thought of going it alone is too intimidating, however, try a service such as Legalzoom, which leads entrepreneurs through the paperwork jungle.
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2. Understand what shop owners are looking for. Primarily, shop owners are looking for a good deal. If your idea of a wholesale discount is 5 percent off a bulk order, you're dreaming. Most retailers are looking to buy in bulk at a minimum of 30 percent for pricier goods (e.g., clothing, handbags, furniture) and upward of 50 percent for less expensive goods (e.g., prints and greeting cards)
3. Be honest about the delivery schedule. You know how long it takes to make your products (and make them right). Most crafters who are new to the wholesale arena don't have a large-scale production line. If that means it's going to take two months to get product to the shop owners, tell them so.
4. Don't discriminate against online retailers. I'm amazed at the number of designers who won't sell to me because I operate an online shop. Money is money. Buzz is buzz. You're trying to make a name for yourself. If your products are available via multiple sites, all the better for you. If you have concerns about another online retailer hurting your online sales, then ask for a reciprocal link from his or her site to one of yours. Although online retailers might not link to your online retail shop, they may link to a blog where customers can learn more about you and your work. And what will those customers find on your blog? A link to your online retail shop.
5. Don't forget to factor in the cost of your labor. Understand the cost of basic materials (what it takes to make your product) and production (the wrapping, shipping and anything else involved in presentation). That's a given. But don't forget about you. You put your time and effort into that product. And your time has value. Yes, you'll have to offer discounts, but don't discount your products to the point where you've completely factored out your own labor. That's not a business model you can sustain.
6. Always ask for a tax or resale ID. You'd be amazed at the number of individuals who disguise themselves as retailers but really want to buy gifts for friends and family members at a discount. To scare off bargain hunters, ask for their resale ID. Then validate that number with the state that issued it.
7. Prepare a price list. List each individual piece of merchandise by name, the recommended retail price, the wholesale (discounted price) and the discount percentage. Include your return and exchange policies in this document. Make certain the document states clearly what you're willing to do if something goes wrong in transit or if the customer (shop owner) is dissatisfied. Finally, clearly state the minimum purchase (dollar or quantity) required to receive the discount. Save and distribute the document in a PDF or other non-editable format.
8. Advertise that you wholesale. If you're an Etsy shop owner, this can be as simple as placing a sentence or two about your wholesale policy on your shop's front page or in the shop policies section. DaWanda, Supermarket HQ and others allow similar self-promotion.
These tips should help you get wholesale-ready. Remember that a good business starts with a good idea. So be certain your idea is sound. Maria Falconer is the founder of Rambles.com, an online shop specializing in handmade goods from a variety of designers.




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