Deciding if Wholesale is Right for Your Biz
Ever wondered if wholesale is the right path for your handmade business? Wholesale isn’t just about more orders or reaching new customers—it’s a whole shift in how you operate. And while it can bring in steady income, it’s not the perfect fit for every maker. Running a small business means juggling a seemingly endless list of to-dos, all with a ticking clock. Your success often hinges on one thing: identifying the tasks that truly move the needle and focusing fiercely on those. This is especially true when it comes to deciding on your sales strategy.
Questions like, “Should I dive into wholesale?” or “Is it worth focusing on wholesale over other channels, or should I keep building retail sales too?” are top of mind.
Let’s break down these big questions so you can find the right focus for your business. So, let’s dig into what wholesale really means for your business and how to know if it’s the right step for you.
What is Wholesale, Really?
Wholesale is about selling your products in bulk at a discounted rate to retailers who’ll then resell them at full price. It’s different from selling directly to customers online or at markets, and it comes with its own set of perks and challenges. Wholesale means more eyes on your work, bigger orders, and the chance to expand your brand’s reach. But it also means building relationships with stores, consistent production, and a pricing structure that works for both you and your retailers.
Is Wholesale Right for You?
The first question to ask yourself is: why wholesale? Think about your goals and why you’re considering this move. Do you want more consistent orders? Are you looking to scale production? Or maybe you want to get your brand into stores and reach new customers. Whatever the reason, get clear on your "why."
Here are some things to keep in mind:
Wholesale Takes Preparation
Wholesale isn’t something you can dive into without groundwork. From pricing and product consistency to packaging and production schedules, you’ll need to set yourself up for success. But don’t worry! If wholesale is the right move, these steps are worth the effort.
Margins Matter
Let’s talk numbers. Wholesale means you’re selling at a discount, often 50% off retail. This means your margins need to support that, so you’re not selling yourself short. Take a look at your costs—materials, time, and any extra expenses—and make sure you’re still making a profit. Hint: if your profit margins are slim, wholesale might be tough to sustain.
Consistent Production is Key
Wholesale orders are bigger than retail sales. If a retailer wants 50 candles or 100 pieces of jewelry, are you ready to make it happen? Think about your production capacity and whether you can handle regular large orders without burning out. Wholesale is a great fit if you can produce consistently, but if your process is super hands-on, consider how you’d scale.
Wholesale Changes Your Business Model
Wholesale isn’t just a sales channel; it’s a whole shift in how you run your business. You’ll need to think about inventory, timelines, and relationships with retailers. Are you excited to manage these new dynamics? Wholesale can be rewarding, but it does require a shift in focus and organization.
The Right Partnerships Make All the Difference
Wholesale isn’t just about orders; it’s about building long-term relationships with stores. This means being reliable, having good communication, and working with retailers who align with your brand. Finding the right retail partners can make wholesale a joy, but be ready for the investment of time and energy.
My Experience: Knowing When to Go for Wholesale
When I started out, I jumped into wholesale without fully understanding the commitment it required. I had the orders coming in, but I struggled with pricing, consistency, and even my own production capacity. It was a wake-up call!
I took a step back, reevaluated my costs, and made sure I was set up for growth before taking on more retail partners. Today, wholesale is one of the best things for my business, but getting there was all about preparation, finding the right partners, and knowing my numbers inside and out.
Deciding If Wholesale Is Your Next Step
Growing your wholesale business on your own terms is all about embracing what makes your brand unique. Not every business will look the same, and that’s the beauty of it! Each handmade brand has its own path, pace, and personality. I’m inspired every day by my students who are building businesses that reflect their values, strengths, and vision, shaping their wholesale journey in a way that truly works for them. Wholesale growth doesn’t have to follow a one-size-fits-all model; it’s about finding the rhythm that feels right for you. Wholesale can be a powerful tool to grow your business, but it’s not for everyone. Think about your production capacity, margins, and your vision for your business. If you’re excited about scaling, building relationships, and reaching new audiences, then wholesale could be your golden opportunity. But if you’re feeling hesitant, that’s okay too! Sometimes, sticking to direct sales is the best choice for your goals.
Opmerkingen