Sell Handcrafted Jewelry Wholesale
To sell handcrafted jewelry wholesale is selling your bead jewelry designs outright to a store (middle person), which then owns them until they are sold to the final customer.
The majority of businesses work on an outright purchase or wholesale basis, that is, the store buys the bead jewelry design from its suppliers (you) at wholesale prices, then adds on a selling cost and profit to arrive at a selling price.
With wholesaling, your designer beaded jewelry is bought at a fixed price that you have set and you are paid within a certain period whether or not the work is sold. The store can ask any selling price it wants. Usually it marks up the item 100 percent or doubles the wholesale price—if the wholesale price is $20, the store may charge $40 or even more to the consumer.
Many jewelry designers and crafters think shop owners are taking advantage of them when they take a 100 percent markup on their work. They must consider that the shop has many expenses to pay, including rent, utilities, insurance, salaries to sales clerks, advertising, and any other cost incurred to run a business. Since overhead costs in running a good store are high, and risks are great, selling your work at double the price you sell to them is a reasonable mark-up. Like craftspeople and jewelry designers, their profit margins are slim , their hours long, their problems many and complex.
Advantages to Sell Handcrafted Jewelry Wholesale
If you are a full-time production jewelry designer in accessory jewelry making then selling your work wholesale is probably one of your most effective methods of marketing. Not only can you increase the size of your market, but you can quickly build a reputation for quality if you select the right outlets. Letting stores handle sales to the consumer allows you to concentrate your own time and energy on production and design.
The selling costs of retailing your work can be high: entry fees into craft shows, traveling and accommodation expenses, display costs, time spent attending shows (when you could be producing), bags and other packaging materials, etc. When you sell handcrafted jewelry wholesale your selling costs are greatly reduced. You still have to bear the expense of making the initial sales to the wholesale buyer but once the sale is made you should get additional orders with little effort on your part. That doesn't mean you'll get further sales without any effort; you'll need to stay in touch with the buyer, but you won't have to spend the hours on sales demanded by the retail market.
An other advantage to sell handcrafted jewelry wholesale is that it can be done entirely by mail or internet, which can broaden your market area right across the country or even overseas without the traveling expenses.
Filling presold orders year round means a steady cash flow which is the major financial advantage to wholesaling. Craftspeople and jewelry designers who sell their work at Christmas and Spring craft shows live a cycle of financial feast and famine. Many craftspeople and jewelry designers will sell their work in both markets to off-set off season selling.
The basis of wholesaling is volume sales coupled with reduced selling expenses, and freed from the task of direct marketing to the individual consumer. Many jewelry designers enjoy dealing with and talking to their customers and appreciate the comments they get from the people who like and buy their work. When you sell handcrafted jewelry wholesale you have no personal exposure nor direct feedback from the public.
Volume sales can mean producing hundreds of the same item, that may mean putting new projects on the back burner until the outstanding orders are filled. Some designers feel that they are losing their creativity by producing the same thing over and over, and feel that they are becoming a glorified assembly-line producer.
One question you will have to ask yourself is: "Can you produce in volume and keep the orders filled?" Meeting the demands of large buyers means increased production, which leads to expanding and taking on staff; now are you not only a producer but also an employer.
The biggest disadvantage to sell handcrafted jewelry wholesale is that you get a lower price for your product which is usually 50% of the final price.
The item you sell wholesale is exactly the same item you sell retail, costing you exactly the same for materials, labor and overhead. The only difference is that you receive only half the price at wholesale that you would receive at retail. Click here for more information on Figuring Wholesale Prices.
Of course in selling retail you have all your selling cost on top of your materials, labour and overhead.
If you are able to keep your selling costs low then you would be able to make more profit on your products when selling retail. Despite better cash flow and selling costs involved in retailing, some jewelry designers argue that receiving 50 percent of the final cost of jewelry pieces sold just doesn't pay. If you have priced your work properly at the wholesale level, the wholesale price should bring you a satisfactory profit. What you lose—or think you lose—in retail markup is more than compensated by selling larger quantities of your jewelry through wholesale distribution.
Consider the economies of scale: to sell handcrafted jewelry wholesale you may make less profit, but you will have much larger orders than in retail selling. Quantity often spells the difference between successful and unsuccessful product marketing.
Different Wholesale Markets
As more and more people become aware of the value of handmade items, the number of customers who want to buy them increases and the number of wholesale markets selling them grows.
Sell Handcrafted Jewelry Wholesale to Retail Outlets
Retail outlets are stores and shops that the consumer will go to browse and shop for merchandise (and fashion design jewelry), ranging from small gift shops to department stores.
You do not have to stick to gift shops or clothing and jewelry related stores, there are all sorts of specialty shops and boutiques that are where your jewelry lines could fit. See these two articles for more detailed information how to sell jewelry wholesale: Wholesaling Your Jewelry to Retail Outlets
and How to Sell Your Jewelry In Gift Shops
Gift & Trade Shows
To sell handcrafted jewelry wholesale through a wholesale gift show is an excellent way for you to find hundreds, often thousands of potential customers all looking for new and unique products, in a short span of time and at a fairly low cost.
Unlike retail craft shows, the wholesale or trade show is not open to the public but only to store owners and buyers who look over your samples and prices, placing orders for future delivery. Many of these gift shows now have separate sections for handcrafted products, allowing the buyers to easily locate hand produced goods. For more detailed information on selling your jewelry through gift and trade shows see this article on: Wholesale Gift Shows.
To sell your jewelry wholesale to shops through mail order is an excellent opportunity for you to expand your market right across the country without having to leave your own city limits.
Instead of visiting shops and showing them your products you can easily send them one of your brochures or catalogues with a wholesale price list and do all your selling through the mail. It's even better if you have your own web site where stores could check out your designs. For more information on mail order check out this article: Selling Wholesale Through Mail Order.
Agents & Sales Representatives
You can also sell handcrafted jewelry wholesale through agents and sales representatives. These people are independent, self-employed contractors working as commissioned salespersons. Their role is to act as liaisons between retailers and you, represent your interests, and promote the sale of your bead jewelry deigns. A sales representative or agent will take your samples and literature around from store to store trying to sell them. He or she gets orders from each of them and passes the orders back to you to be filled and shipped. For more information on useing an agent or sales representative sell this article: Using a Sales Representative to Sell Your Jewelry
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