Wholesale Policies

[Three Red Hens Press]

Hello fellow paper crafters!

I'm wondering if you have any particular wholesale policies with your products. I'm particularly interested in how you charge for shipping and your opening order minimums. I have just gotten started selling my cards and really only have 10 or so designs which makes this tough. Any insights or resources you might have would be appreciated.

Thanks! :-)

Erika
http://www.threeredhens.etsy.com

[Martha Starke]

Hi Erika. I haven't had a lot of luck with wholesale. Shops mark up my cards so much that they are too expensive and then I never get a reorder. However, the few times I have done it, I asked for a minimum order of $100 and then subsequent orders are a minimum of $50. I also had them fill out a new account application - an idea I got from a book about home-based craft businesses. (Wish I still had that book!) Hope this helps.
Martha

[Sarah Kinzalow]

I have had very little luck with wholesale and have wondered how others approach the issue as well. I have been contacted more than a few times by people interested in wholesale, but when I propose my discounts, etc., I never hear back from them. It seems like these people are wanting you to sell your handmade cards at little to nothing to them. I already have pretty low prices and there really isn't much room to take any additional $$$ off. I feel like they don't realize how much work (and $$$) goes into each card. I am definitely going to check in on this forum and see what others have done/come up with for suggestions.

[Three Red Hens Press]

Sarah, you may encounter troubles with wholesalers because they expect your wholesale price to be 50% of your retail price or around there. Many wholesalers will not want to purchase from you at "retail" price or close to your retail price and be forced to mark it up drastically higher than what you are selling for – they are afraid to promote you when customers could purchase directly from you for much less money. With all the time and effort expended, not to mention Etsy & PayPal fees I price my items at retail, based on a formula for wholesale price I found in the book "Craft, inc.". Am I making more money on Etsy than selling wholesale? Not really, because I have to spend so much time promoting, going to the post office, packing orders, etc. (even though the price is different than my wholesale rate). Maybe it would be valuable to reexamine your prices by setting a wholesale rate and deducing your retail price? I'm happy to share the formula with you, I just don't have the book on hand at this moment. You're right to want customers & wholesalers to appreciate all the energy & time that goes into your product, hopefully this will help. :-)

[Sarah Kinzalow]

Thanks - that sounds great! I may even check the book out. I have recently decided to donate 50% of my card sales to a different charity each month and I probably need to re-do some of my pricing. My 2nd shop is keeping me pretty busy but I still enjoy making cards and would love to have a reason to make more (sales).

[Sarah Kinzalow]

I just ordered the CRAFT, INC. Book from Amazon. I found it doing a search and referred back to your forum discussion to check the titile of the book you recommended. Same book and I can't wait to get it. Thanks for the recommendation!

[Becca - Mycatlulu]

I am interested in this too! It would be a great way to get your work off the ground!

[Five Dot Design]

i worked with a start up letterpress company that did the NSS and their policy was an opening order minimum of $150. i believe they charged shipping to the buyer, but i'm not sure. something that may help is to offer free shipping with a higher amount. another option would be to offer free shipping, but shimmying a little of the shipping cost into each pieces' wholesale price to compensate a bit. i would also offer up a suggested retail price- which is the same as your etsy pricing. it keeps the stores from skyrocketing your prices (hopefully at least) because they know the cards are being sold for a lower amount on your website.

if you don't want to offer up the free shipping up front, offer discounted shipping for each reorder, or after x amount of reorders, receive free shipping, like on the 3rd or 4th order- whatever works for you. that way you know they're a solid customer and not just ordering for the free shipping or the perks. another option is to offer discounted shipping for ordering more merchandise (i.e. order $200-$250, get 10% off shipping, $250-$300, get 15% off, etc). i don't know your pricing structures, but of course you can tweek that to work with your prices.

i would also establish a reorder minimum or a minimum for the year (i.e. you must order x amount of merchandise from may1, 2008 to may1, 2009- whenever their initial order date was) and then after the first year, that drops away or for the second year you offer free shipping. this option and the free shipping after so many orders could help build loyalty to you, thus keeping the reorders coming!

sorry if i'm rambling, but i hope it sparks some ideas! these are just ideas i've been toying around with myself AND ideas that would prompt me to work with a particular wholesaler if i were a buyer. if none of that works for you, there is always the percentage off your retail prices to get your wholesale cost- but i think the minimum- be it in money or number of items (initial order must be at least 5 designs) is key because it ensures you're getting your compensation for your work.

[Three Red Hens Press]

Thanks for all the ideas Five Dot Designs, it's appreciated! I've ended up borrowing wholesale rules from a variety of similar shops I've found online (and came to similar conclusions as you have). I'm working with one retailer locally on a more lax schedule, but I hope to start more aggressively finding wholesale opportunities.