Crafting a Successful Small Business by Joanne Dewberry

Author:Joanne Dewberry
Language: eng
Format: epub
ISBN: 9781908003430
Publisher: Harriman House

Selling Wholesale

This simply means selling your goods to retailers who then sell to the end customer (as opposed to you selling directly). Generally you make a smaller profit per item because the reseller also needs to make their margin, but wholesaling usually involves larger quantities so you get increased volume. It is a win-win situation; your products are out on the shelves and the retailer increases their range of unique handmade products – something severely lacking on the high street.

Why is wholesale useful? It increases your potential market and customer base, and it frees you up for creating rather than selling your products.

When selling direct to customers you are using your retail price (see page 19). However, for wholesalers you need to use your trade price. If you have a recommend retail price, or RRP, then look to offer wholesalers a 50% discount on that (as long as you still make a reasonable profit). It’s good to have an RRP to keep pricing parity across your various selling channels.

“If you are supplying to local shops and selling locally yourself (at fairs, etc.) you have to be wary of not undercutting the shops.”

– Nadine Thomas (www.nellie-dean.com)

You also do not want too many businesses in the same area selling your products as it dilutes their uniqueness.

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