So many creative business owners are brilliant at creating products… but when it comes to wholesaling them and getting them into store it is often difficult to know what to do. If you are creating a product to sell remember…
Retail means selling small quantities of goods to members of the public for their own use. To make money in retail you sell small quantities of products at a higher price.
Wholesale means selling large quantities of goods to stores for the purpose of resale. With wholesale – the key word is VOLUME. You’re selling your work to a retailer for less per item, but they’re ordering larger quantities of items.
If you are selling a product direct to the public for R100, the shop should also be retailing that product for R100.
If you are a creative and feel ready to start approaching shop owners… here are a few tips…
- Know your prices, be very clear and confident about your wholesale price.
- Be able to talk in percentages and mark-ups to shop owners.
- Check you pricing constantly, research new ways to improve production time and component costs to reduce your overall raw costs. You will make more money by being smart.
- Have a minimum order quantity. For example the retailer must order at least 5 of each item or the order must amount to a minimum of R1000. This makes it more worthwhile for you – the creative.
- Give a small discount on your first order or drop your minimum order, to get a new retailer off the fence.
- Be flexible and tell the retailer the truth – you love what they do and are excited about working with them… so you can negotiate a little.
- Get full payment from the retailer before you start to make any products.
- Drop off your first order by hand and check the retailer is happy with their first order, it will save them courier costs which will make the retailer happy!
Want to learn a little more?? Get in touch and book a 1-1 consultation with me. We can create a buzz session to suit you and cover the topics you feel you need assistance with.