Sell Jewelry Wholesale

To sell 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.

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

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. By selling 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 wholesale selling 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.

Disadvantages

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 of wholesaling 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: selling 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

Retail Outlets

Gift & Trade Shows

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.

Mail Order

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.

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