When it comes to my business, nothing has had a bigger impact than selling to stores. It’s where over 90% of my sales of jewelry and other products comes from. It’s what’s enabled me to hire someone to do production and truly grow my business.
If it wasn’t for wholesale, I wouldn’t have a business.
But I see so many makers resisting getting into wholesale because of a few misled beliefs. And these beliefs could literally be costing your thousands, if not hundreds of thousands of dollars of revenue.
Here are three common myths that might be stoping you from diving into wholesale:
Myth #1: Selling to stores means giving away half my profits.
It’s a mistake to think that when you sell to stores, they take away half your retail price. When you sell to stores, you set a wholesale price and stores mark up from there. Which means you need to price your products so they’re profitable at the wholesale price.
This is the biggest shift I see most makers needing to make in order to get into wholesale, but once you get it right, it can have a major impact on your business. Because not only does pricing so you’re profitable at the wholesale price point mean you can start selling to stores, it also means that any time you do sell retail (like in your online store or at a craft show), your profit margin is a whole lot bigger.
Myth #2: Everyone is just shopping online these days.
You hear it all the time. Brick and mortar is dead. Everyone is just shopping online these days. But while online shopping is certainly growing, in the US, only 6% of all retail sales are taking place online.
Where are the majority of sales transactions taking place? Still in stores. So if you aren’t selling to stores, you’re missing out on a big chunk of potential customers.
Myth #3: I can’t afford to do a trade show, so that means wholesale is out for me.
First off, let me say that I love trade shows. They are a huge accelerator for most wholesale businesses.
But you can certainly start building a successful wholesale business without them. (I know someone who picked up hundreds of stores simply by waking up every morning and sending lots of emails.)
And if you want to do a trade show? It may not be as unaffordable as you think. Picking the right show and budgeting accordingly can keep your costs down, and with social and crowd funding sites becoming the new norm, there’s never been more creative options for funding your first trade show.
Now it’s your turn! Share in the comments: what’s holding you back from getting into wholesale?
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Want help growing your wholesale business? Check out my best selling class on Creative Live, Sell Your Products to Retailers.