If you have a successful business selling through craft fairs or online, you may wonder why wholesale your products.
Earlier in the year, I posted an article: Why Wholesale Your Products? Many reasons to wholesale are listed in this article.
In addition, there are many benefits to wholesaling are often unknown or overlooked. The Arts Business Institute has listed several reasons to wholesale in their recent article:
Your schedule becomes less hectic. When you consider the studio hours lost when traveling, and the time you aren’t spending with your family while you are at fairs, you might find that doing at least some wholesaling in your business makes it possible to stay home more often….
Your work is sold before you make it. Wholesaling is efficient because you are able to schedule your production calendar to make work that is already spoken for, not on “speculation.” In many cases, you charge the wholesale customer’s credit card before the package is shipped, which means you don’t have to worry about a lot of collection problems either.
It helps even out your cash flow. It’s always a good idea to consider multiple streams of income that provide cash flow throughout the year. Oftentimes, you can create and ship wholesale orders when the retail season is at a low point….
Repeat business makes wholesale sustainable. As you build an account base of regular wholesale customers, your business grows. And – because repeat orders are much easier to obtain than opening orders, you don’t have to work so hard to make sales….
Wholesaling dovetails beautifully with other ways of selling. When wholesaling, you can keep a production schedule and choose how much you will produce during any particular month for your accounts. Plan additional studio time to build inventory for retail sales, and make commission work, etc. that provides the other income streams you have….
You can have an exit strategy. Your stable of wholesale accounts is one of the biggest assets of your small business. That means when you are ready to retire, or decide to sell your business, you have an account base that is quite valuable….
One of the best reasons to wholesale is to maintain control in your business. Retail sales, as you probably know, can be willy-nilly. If you develop a good stable wholesale business, you can maintain consistency — which creates better control in your business.