I was approached by a shop owner with an offer of buying some my stuff (what I sell on ETSY) on wholesale basis. The size of order is small obviously, because it's handmade things. She wants a wholesale discount. Does anyone know anything about this kind of sale? Any considerations are very welcome!
How lovely to be asked, Galina. Of course the problem is always adding a middleman who needs to take a good proportion of the price it is sold for, with you still earning 'enough' & without pricing it out of the market. Tricky.
Thank you Jill! Of course as all of us know the "wholesale" in large quantities is not possible in felting. Never mind how hard I try still there is a limit on how many items I could make. So at the very best it will be just a large order. But it was nice to be asked, yes !
Galina, if you have more questions, please feel free to ask me. I deal with wholesale all the time from the gallery side of things. I would suggest that they sell your work on consignment instead of wholesale. Most galleries/shops will consider this. You should get 60% of retail price on consignment or I wouldn't do it.
I would suggest that they sell your work on consignment instead of wholesale. Most galleries/shops will consider this.
What is the difference? At the moment I consider it as a large order of six tea cosies. The design and size are different and of her choice. The time of delivery is not pressing. I agreed for discount off my ETSY prices (which are rather high) and I have no idea at what price she is going to sell. The shop is in a wealthy area. All in all seems OK to me. If she changes her mind before delivery it's fine, I just will sell them on ETSY or at fairs. Thank you to you all for advice and support! I need it because it's entirely new area for me.
Wholesale price should be 50% or less of retail price. For example, I buy things wholesale and then mark them up by 2.3 the wholesale price. Most galleries don't want to have you selling the same thing on the web for a lower price than they are selling them in the gallery. With consignment, you get paid when the item sells. With wholesale, you get paid up front.
If she is paying you a wholesale price you can live with, wholesale is fine. I have found that I can often carry a wider range of items from one artist if I am paying consignment as opposed to wholesale. Just a few items don't really sell well by themselves. You need a good display of work for items to sell well.
Consignment in my area is typically 60% for me and 40% for the store. One place only takes %20 but that is exceptional. Whole sale is usually 50%. It is nice in that you get the money upfront and you don't have any risk. Maybe ask around to see what typical in your area.
"Consignment" is called "Sale or Return" (SOR) here and it's how I sell in any shop/gallery. The commission they deduct is between 30% and 40%. I do not mind this way of selling at all, the only problem I had was with the shops located far away - you have no control and sometimes no info on what exactly sold. Usually I know the number of sales but not details - like: three glasses cases were sold, but were they poppy or daisy? I need to know to restock with right variety. If the shop is close you have some flexibility, to swap items which not selling for smth. new.
This order is different because it's rather large order and she is suppose to pay upfront deducting a discount similar to one for consignment. I hope it goes well and anyway it's rather quiet at the moment and I have time to make all these pieces. Thanks Ruth and Ann! You will here from me again if something goes wrong