If you plan to grow your business, wholesaling your products is the way to go. Instead of selling one or two items, you can sell dozens at a time.
Megan Ausman from Designing a MBA describes them perfectly in her article:
Myth #1: Selling to stores means giving away half my profits.
It’s a mistake to think that when you sell to stores, they take away half your retail price. When you sell to stores, you set a wholesale price and stores mark up from there. Which means you need to price your products so they’re profitable at the wholesale price.
This is the biggest shift I see most makers needing to make in order to get into wholesale, but once you get it right, it can have a major impact on your business. Because not only does pricing so you’re profitable at the wholesale price point mean you can start selling to stores, it also means that any time you do sell retail (like in your online store or at a craft show), your profit margin is a whole lot bigger.
Myth #2: Everyone is just shopping online these days.
You hear it all the time. Brick and mortar is dead. Everyone is just shopping online these days. But while online shopping is certainly growing, in the US, only 6% of all retail sales are taking place online.
Where are the majority of sales transactions taking place? Still in stores. So if you aren’t selling to stores, you’re missing out on a big chunk of potential customers.
Myth #3: I can’t afford to do a trade show, so that means wholesale is out for me.
But you can certainly start building a successful wholesale business without them (trade shows).
And if you want to do a trade show? It may not be as unaffordable as you think. Picking the right show and budgeting accordingly can keep your costs down, and with social and crowd funding sites becoming the new norm, there’s never been more creative options for funding your first trade show.
Are these myths keeping you back from wholesaling your products?
In my experiences, pricing is a HUGE issue when moving from retail sales to wholesale selling.
For more information on pricing, check out the following resources:
- Pricing your products archive
- Pricing Your Products for the Wholesale Market website
- “How to Price Your Products” eguide