O.P. If you're serious about this, I think it can be done, but forget about simply buying from a 'wholesaler/distributor' and reselling - as you have found out, the margins won't be there!
I'd be wary about putting up money for a franchise either. Money in stock is fine, you will always sell it eventually, but most of these franchises want waaaay too much!
Personally, providing you know your tools (and there's no point doing this if you don't) I'd find some manufacturers who are not well represented, perhaps smaller ones who only manufacture a few lines, and approach them directly. If you can pick up some quality items from foreign countries (not China, but maybe Europe or the U.K.) that have little or no distribution in the U.S. then that's even better. If you can take advantage of a strong dollar, better still!
P.M. me if you want some ideas!
P.S. Don't expect to make a living out of this! At first it will be a lot of work and no profit. Later, maybe some small profits. Pocket money rather than paying the mortgage though!
You will get efficient and thoughtful service from SINOTOOLS.
We love sharing resources and geeking out about all things related to small business. Wholesaling is a common topic of conversation, and so we thought it would be a great idea to share a roundup of the top 10 tips for wholesaling handmade items from our community of creative small business owners & industry experts. Enjoy!
Go get the people who don&#;t know that you exist yet. Look for stores that you think would be a perfect match and send them an inexpensive but well done package with a catalog or promotional materials. It isn&#;t always necessary to send samples, except for things with a scent or a flavor. When you send a sample, make a nice presentation, but there&#;s no need to go overboard. Before you make contact, do a little research on their website or Facebook page and include a short note, mentioning something you discovered about them. The personal touch and thoughtful approach will set you apart.
There is not one answer to this, but the following points are important:
Wholesale can be great if you have the proper terms & costs in place. A wholesaling strategy for a handmade business is different from a non-handmade business because creative time & production time have to be taken into account. It isn&#;t a simple (costX2) situation. Consider all costs including: labor, research, overhead, materials, and any other set costs and multiply by 2 or 3 to get that wholesale price.
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Here&#;s a rough timeline:
The same process happens in Spring, ideally starting in October, with a flyer or catalog going out at the end of February.
Consider working with just a few stores with whom you have an excellent rapport and sense of kinship. You and your shops will become invested in each other. Shop owners agree, cold-calling &#; emailing stores that you think are right for you &#; is still the best way to go.
Especially when it comes to things like delivery times. The handmade process takes a lot longer than manufacturing items, so be mindful of your capacity and communicate that clearly with your stores. Also, be sure to consider your retailers if you are planning a rebrand.
When reaching out to stores, be sure to include a functioning link to your website, include some photos and don&#;t forget to proofread!
For an emerging brand, wholesale customers can be an invaluable source of feedback. This is especially true if you sell into different types of retailers (brick and mortar vs ecommerce, home-furnishing/gift retailers vs toy retailers vs educational, etc) which means the feedback you receive from each segment is really rich and varied. As an entrepreneur, one of your strongest assets is the ability to gain feedback and be agile about integrating it back into your products or workflow. There&#;s always room for improvement!
Photos from Moon+ArrowShop owners are looking for things that are really unique and will fit well with their store. It&#;s a fine line &#; not necessarily trendy, but fitting into a trend. If you&#;ve contacted a shop about carrying your line, and you feel like it&#;s a good fit, but you haven&#;t heard back, it&#;s definitely effective to follow up.
Having a wholesale site and the ability to offer payment options are really helpful for shop owners. Make it easy for shop owners to work with you!
Packaging is a big consideration for shop owners. Not everything has to have a fancy package, but you need to think about the kinds of stores you want to be in, and the packaging has to fit.
Your packaging doesn&#;t have to be fancy, but it has to work &#; a lot of the paper labels rub off, so it&#;s important to test these things out first.
Packaging needs to tell people what they are looking at, without being too wordy. For instance, tea towels need to be labeled as tea towels, and it really helps when it says the dimensions so we&#;re not guessing or having to unfold everything for customers.
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Here are some links from the Aeolidia blog that can help you when pitching your product to boutiques and gift shops:
Huge thanks to everyone who chimed in and shared their insights in this post: Etan and Emily from Wholesale In a Box, Chelsea from Moon and Arrow, Ryan from Stitch and Saw, Amy from Bow Wow Couture, Lior from La Boîte, Teri from Body Systems, Sarah of Sarah&#;s Silks, Asya from Gleena, Sarah of Jack Be Nimble!
Do you have any wholesaling tips to share or questions of your own? Let us know in the comments below!
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