Sales Channels for Your Silk Scarves - Part 4

Lets talk about the wholesale as a sales-channel for your silk-art products.
Wholesale is the traditional way to sell manufactured products to a re-seller/ retail business.
As the word says the sales goes in whole units and totals larger volumes.
Example as to how and where would be: selling your products on trade shows or through a sales rep, where the clients are retail business partners.

As you can imagine the wholesale of your product can come into consideration once you are in a position of producing larger volumes of your product in best quality including packaging etc. (see post "quality work needs quality packaging" for details).

The critical aspect of selling in wholesale to retailer is to know that the retail partner expects to double your price to define his retail price. This fact requires very well calculated selling price on your part, a price that will be acceptable for the end-consumer on one side and that would generate profit on your side (your sales price minus material, labor and location cost related to the operation of your studio/shop).
If this seems difficult at the moment, keep reading as we will develop a product palette that will allow for larger sales and larger revenue as that is where I am going with this blog-workshop.

The Pros of wholesale:

• you know what you are going to produce is already sold (the greatest advantage of the whole process)
• you produce your sample package, sign the contract with the buyer and produce/deliver your product in a specified time frame as stated in the contract(4 to 6 weeks are very common)
• you get your money when you deliver your product* (vs. what we said about consignment where your inventory is with the outlet and you are getting paid for the items sold only)

* it is possible for the first time contracts/clients to ask 50% down-payment at the contract signing and the rest before you ship. Large companies and institutions will expect 30 days term. You should have the rules of your sale stated in the contract, so both parties know the responsibilities. Look on the internet for sample contracts or consult a professional.

The Cons of wholesale:

• The selling price (half the retail price)
• The need for buying/carrying larger volume of the raw materials (silk, paints)
• The presence on a trade shows is costly unless it is in your city or you can get free lodging with a friend while doing the show. The booth, lighting, and professional appearance are important and will generate larger first-time expenses.

In Summary

• Know your production capacity. Run a test how many scarves you can produce in a specific time. 
• Know exactly the selling price you can commit to
• promise only what you can commit to 
• have stationary prepared with your logo and contact info, business cards, check online tips on trade-shows. The company 4Imprint publishes newsletter with many interesting news about trade-shows
• Have brochures with your product info, prices and offers
• the trade-shows here in Canada run 2x/year starting in Toronto, then Edmonton and Vancouver last. each month one of those cities (January, February, March and for the Christmas business July, August, September). One of the Arts and Crafs Wholesale Show is called "By Hand" and is designed for crafts and art professional businesses (for the first time participation you will need to submit your product for evaluation/ professionalism is the criteria)

Wholesale and direct sale is what you are aiming for with your business.

This can be an example for the presentation of your silk scarves on a trade-show.

The next post will focus more on the products.

Enjoy your day:)