You may have seen on my Facebook page that I am now accepting wholesale orders. If you'd like to know more about Earth N Moon wholesale, check out the website here!What exactly is the difference between wholesale and retail?
Well, in simple terms, retail is the non discounted price you would see on the Etsy store. Retail costs factor in packaging costs, labor costs, raw materials costs, and overhead costs. Wholesale is basically for stores who would like to sell other peoples' items in their store. However, instead of buying the items at the retail value, there is usually a discount and a minimum order. So, people who usually buy wholesale buy in bulk and receive a discounted rate.
Essentially, I am willing to part with my unique, homemade items at a wholesale rate in which I may not make much monetarily. However, there are other benefits to selling wholesale which include:
- Moving more product at one time. Think about it, although you are selling at a discounted rate, you are moving more inventory that would normally be sitting there waiting for each person to come by and buy one or two items. If you're really lucky, they may buy more than two at a time. By moving more inventory at one time, you are able to make room for other items.
- Gaining recognition. I've noticed that unless you are widely known through your local and online communities, you will not sell much because people don't know who you are. The more familiar people are with you the more people are likely to buy from you. Wholesale gives you the opportunity to gain recognition not just in your local community, but potentially nationally. It depends on where your items are featured, to whom your items are being presented, and the quality of your product along with other factors. Gaining recognition in place of the discount on the prices of items is never a bad thing. It could potentially drive retail sales upward.
- Building relationships. Your network and contacts will slowly grow through wholesale. Part of building a great business and being known is building better relationships between you, your customers, and your customer's customers. While people who are requesting wholesale prices are ultimately reselling your items at their own rates, they are still your customers. Having a healthy customer service relationship with your wholesale customers is key to keeping your items in the public eye as well as making their customers happy to a certain extent.
So, if you are getting a lot of requests for wholesale orders, don't shoot them down just yet. Talk with those who are looking to feature your items in their locations. You can always be open to opportunities but stand firm on your discounted prices and terms. This is your work. You are putting yourself out there and you have every right to what you feel is best for you and your blossoming business. So, here are a few tips in case you are just a little unsure of whether or not to consider wholesale prices.
- Are you at a point to consider wholesale? If you are making your products in small batches, you can still consider wholesale, just don't burn yourself out. Just know that you will have to be able to keep up with your wholesale orders at the same time of keeping up with your retail orders. Making sure you have enough product, materials, and time is essential to committing to wholesale and retail at the same time.
- You have the right to know where your items are being sold. If a person wants to discuss wholesale prices with you, always get information first such as the name of their store and where your items will be featured. If they can't give you a name or refuse to tell you where your items will be sold, go with your gut instinct.
- Always make sure you have a minimum purchase quantity. Why else would you give a discount? There would be no point in selling wholesale if the other person were not buying in bulk. The minimum purchase quantity is ultimately up to you. Set realistic minimums. If you are making all of your products by hand and you set your minimum at 5 per item, will you be able to easily deliver that amount?
- Don't sell yourself short. You should still be able to make a profit from your wholesale orders. Your wholesale prices should depend on how much profit you will make. Set realistic prices and make sure they are fair to both yourself and your wholesale customers.
Remember, this is your stuff and your business. You ultimately set the prices and purchase requirements for wholesale.
Join me tomorrow for a tutorial on super easy bath salts!
Cheers!
Kristine
