It’s an understandable goal. Who wouldn’t want to see their work on the shelves of their favorite major retailer?

But it’s important to consider whether pursuing those stores is worth it from a business standpoint.

Sure, those stores come with major orders and some potential prestige. But they also come with ironclad contracts, detailed specifications, and often, prices that have been negotiated below your standard wholesale price.

I have friends who’ve had great experiences working with chain stores, and friends who’ve had not so great experiences.

If your dream is to see your work sold in major retailers, it’s important to ask yourself why.  Is it for your ego, or is it really what’s best for the bottom line?

Because it is possible to build a successful wholesale business without selling to major retailers. I know, because I’ve done it.

I’m not saying that I’d turn down a major chain if they called.  But I love the flexibility and personal connections I get working with my museum stores, craft galleries, and boutiques.  I love feeling more like a partner than a vendor.  And I love sending my work to stores that are committed to their local area.

I firmly believe that there is no one single path to success when it comes to running your business.  What works for me isn’t necessarily what will work for you.  But if you’ve been dreaming of getting your work into a certain major store, take a minute and ask yourself why.  If it’s what’s best for your business, go for it.  But remember, there’s more than one way to build a successful wholesale business.

Share your thoughts: Do you aspire to have work in major retailers? And why? And if you’ve sold your work to major retailers, was it worth it?

PS.  I’m getting ready to open registration for my Wholesale Academy.  If you want to be the first to know, make sure you’re on the early bird list.  (Sign up at the bottom of this post.)

This show, more than any other, has solidified for me the value of participating in trade shows. In talking to friends in various stages of their business, they all were able to take value from exhibiting in the show. (Even those whose sales weren’t as high as they initially hoped.)

So today, I wanted to share a few takeaways from last week’s show:

1. The only way to truly know if a show is right for you is to do it.

When it comes to choosing the right wholesale show for your products, research is key. Walking a show, talking to other exhibitors, asking questions of the organizers, these will help you figure out if a show seems like a good fit. And in doing research, you’ll typically find shows that are obviously wrong for you. Maybe it’s the price point or the products. But you’ll instinctively know when a show is a bad fit.

But in doing your research, you’ll likely come across a lot of shows that might be a good fit for you. You’ll walk the show and the vibe seems right. And then you’ll talk to exhibitors. Some will tell you it’s a great show. Others will tell you it’s terrible. You think it could work for your products, but you aren’t quite sure.

Ultimately, the only way to know if a show is truly right FOR YOU is to do the show yourself.

Because you and your products aren’t like anyone else’s (hopefully) your experience in doing a show won’t be like anyone else’s. So if a show seems like it might be a good fit for you, the best way to find out for sure is to do it.

Yes, it’s a big investment. And yes, sometimes that investment doesn’t pan out the way you had hoped. But in the end, it’s a learning experience. And one that could potentially net you far more than you invested in it.

2. Nothing replaces face to face interactions and connections.

In talking to a friend who was exhibiting for the first time (and who had an amazing show), she expressed that prior to the show she didn’t realize the value in connecting with buyers face to face.

Yes, the Internet has made it possible to connect with people like never before. And yes, stores are finding new products and designers online.

But connecting with someone in person still has an incredibly different feel than connecting with them solely online. When you meet someone in person, you feel a stronger bond and build a deeper relationship. (And relationships are what selling wholesale is really all about.)

True, the Internet now helps facilitate those connections. (I took an order from a store who first found me on Twitter.) But those in person meetings can help seal the deal.

Not to mention the fact that most buyers are shopping for a brick and mortar store, where people will be buying products in person. Store buyers still appreciate being able to see and feel products in person because that’s the way their customers will be shopping.

So often, I hear people say that trade shows are dead. And while they may not be at the same level as they were in the later stages of the last century, there’s still a face to face aspect that makes exhibiting at trade shows incredibly valuable.

3. You have to be prepared for highs and lows.

Despite being my best show to date, this show was about as uneven as they come. I had days of zero sales. And my best day at a trade show ever.

Exhibiting at a trade show is an emotional roller coaster, and you have to be prepared for that.

You have to learn not to take it so personally. You have to stay upbeat and positive, no matter what. And you have to search for your own takeaways at each and every show.

If a show is going great, it’s important to reflect on why. What did you do to make the show successful for you? What worked? And what could you do better?

And if a show isn’t going so great, what can you take from it? Did you get a clearer sense of who your market is? And isn’t? Can you work on improving your sales presentation? Do you need to revamp your display or promotional materials?

For most people, a trade show isn’t a 100% positive experience. Even the best shows have slow moments and what feels like missed opportunities. But once you understand that it’s a natural part of the process, you can learn to ride the wave of emotions and come out of a show with the best experience possible.

The thought process is, “I’m here. I spent the money. I traveled.” That should be enough.

And while you may occasionally get lucky, the truth is that this type of mentality is what leads to disappointing sales and frustration with wholesale shows.

Yes, exhibiting at a wholesale show is expensive. But why waste that investment by not doing everything you can to make the show exceptional?

On a side note, exceptional doesn’t mean that you need to start dragging hard walls to every show. Exceptional means that you do everything possible to showcase your brand and your products in the best way possible. And that will mean something different for every one.

So if showing up isn’t enough, what else can you do to ensure a good show?

First, you need great products. As someone mentioned in the comments of my last post, without great products, a great booth gets you nowhere. Great products means having the right products at the right price. (And the right price isn’t always the lowest price, it’s just one that makes sense for your product offerings.) Great products means having a focused product line with a clear aesthetic. It means having products that are well made and well finished.

Once you’ve got great products, there are still a few other things you can do to ensure show success:

1. Pre-show marketing. Pre-show marketing is critical, especially if you’re going to a big show. It’s so easy for your booth to get overlooked, even with a great display. Pre-show marketing could mean postcard mailings, emails or phone calls to key stores, or advertising in relevant trade publications or show materials. The best pre-show marketing will help create buzz about your products before you even set foot on the show floor.

2. An inviting booth. Yes, taking some time to create a killer booth is important. Particularly as a creative person, you do yourself an injustice when you use fixtures that look like everyone else’s. Spend some time making your display pop. (Which is possible to do even on a budget.) And don’t scrimp on lighting – it can mean the different between an inviting booth and one that no one notices.

3. A good sales presentation. Your ability to sell your work can have a huge impact on the success of a show. Even if you’re new to selling, having a friendly, positive attitude is a good place to start. I say hi to every person who walks by my booth. And if they stop, I engage them in friendly conversation, usually centered on where their store is located. These two simple actions have helped me score countless orders from buyers who wouldn’t have even looked at my booth if I hadn’t said hello.

Exhibiting at a wholesale or trade show can be a lot of money, which is why you shouldn’t leave the success of a show to chance. By implementing a strategy that goes beyond just showing up, you’ll likely have a much better show, and see a much higher return on your investment.

PS. If you’re looking for some individualized help with the wholesale side of your business, I’ll soon be launching my new program, Wholesale Academy. Part e-course and part group coaching, Wholesale Academy will help you with every aspect of your wholesale business, from pricing to line sheets to identifying stores to picking the right trade shows to your booth set-up. The program will feature plenty of one-on-one time with me through group coaching calls, office hours, and Q&A where I’ll happily answer every question you could possibly have.

If you’re interested in being the first to know when Wholesale Academy launches (and getting a really sweet deal) add your name and email in the form below:

 

 

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Grace put together a fantastic video with her thoughts on the show, and it brought up a lot of great questions and discussion.  So yesterday I sat down and recorded my own response:

For me, the real discussion centers on two key ideas:

The first is the economics of trade shows.  The cost of doing a show like ICFF is prohibitively expensive for a lot of small independent designers.  A lot of the discussion has centered around whether or not there is enough return on investment to warrant doing a show like ICFF.  But I think the bigger problem isn’t ROI, it’s cash flow.  If you spend the money to do the show, will you have enough money to continue running your business while you wait for the payoff from the show?

The second is that I think shows aren’t doing enough to help independent designers transition into more established businesses.  Many people mentioned that ICFF could add a section of smaller, more affordable booths just for independent or emerging designers.  I think this makes sense from the standpoint of bringing in new, innovative work.  It’s a strategy that I’m seeing at a lot of other trade shows.  But I think where a lot of shows fall short is helping those who exhibit in this type of scenario transition into the larger show.  There’s often a limit to how long you can have one of these booths, and then you’re forced onto the main show floor.  But for a lot of designers, one to two years may not be enough time to make the leap to a booth that is two or three times the cost.  What can we do after we’ve brought in independent and emerging designers to help them continue to innovate as they make the transition to a “regular” booth at the show?

I believe there will always be a need for trade shows when it comes to the business of buying and selling products.  Nothing replaces the experience of seeing an object in person.  And nothing replaces building face to face connections with people.  Video comes close, but it’s still not the same.  It’s the same reason people still go to conferences.  Despite all our reliance on technology and social media, we still crave physical connections with people and objects.  The business model and logistics that support trade shows may need to change, but the fundamental reason they exist won’t.

I’d love to hear your thoughts on this and the discussion taking place on Design*Sponge:

What can we do to promote more innovation at trade and design shows?

And do you think trade shows are dead or do you still see a value in them?

This is a question I’ve been hearing a lot lately. Whether it’s vintage books or salvaged fabrics, if you don’t have a consistent source for your materials, wholesale may seem out of the equation for you.

But there are ways to make this problem work. You can group products by type, size, design, or some other consistent feature, and let potential retailers know that the actual products they’ll receive will vary. You can send an image of the grouping in advance for a store’s approval. You can offer exchanges to help ease the minds of retailers.

All of these are great strategies, and I’ve seen them work for many people. But what if you took it a step further? What if you turned what you had previously viewed as a liability (the inability to offer a consistent product) into an asset?

Instead of viewing your inconsistent material availability as an obstacle to overcome, why not view it as a virtue to be praised?

Let stores know that these materials are special. That your pieces are unique. That once they’re gone, they are gone.

Not only can you make this a selling point for your stores, this is something that your stores can now use to help sell your products more effectively. If someone falls in love with your piece in the store, the sales staff can use the limited availability to help drive that sale:

“That pillow? It’s made from industrial fabric remnants. There are only twelve like it in the world, so if you love it, you should buy it now.”

Not only can this uniqueness help drive sales, it can turn customers into collectors – people who want to own multiple versions of your products.

So often, all we see are the potential problems in our business. We see the roadblocks and potential pitfalls, especially when you’re doing something different than “the way it’s always done.”

But instead of seeing them as problems, why not turn them into the things that make your business special?

What have you been viewing as a liability for your business that could actually be an asset?

The basic premise is that people don’t buy what you do, they buy WHY you do it. If you only focus on what you do or how you do it, you’ll have to resort to manipulations such as price or promotion to get people to buy your products. But companies that start with WHY – a belief, cause, or idea beyond what they make – build loyal fans for life.

I couldn’t help thinking about this concept as I walked around the National Stationery Show on Sunday morning.

Because so much of the show is focused around one product, cards, it can be incredibly challenging to get your booth to stand out.

One of our favorite books growing up was called Mr. Pine’s Purple House. In the story, Mr. Pine owns a house on a street where everyone’s house looks the same. To make his house stand out, he plants a tree. Then all his neighbors plant the same tree. All of Mr. Pine’s attempts to stand out are copied by his neighbors. When Mr. Pine paints his house purple, his neighbors want to copy him too. It’s only when Mr. Pine suggests they all paint their houses different colors that they finally decide that it’s better to have all their houses be different than the same.

This is what seems to be happening at the stationery show. People see someone having success with products beyond cards – posters, gift-wrap, etc – and they decide to do that to help them “stand out” as well. But it ultimately ends up making everyone look the same.

Of course, some of the larger companies rely on other gimmicks to help them stand out. One company had hired a mime to stand on a pedestal at the front corner of their booth and read a giant greeting card!

When I saw that, I couldn’t help but think if that company had a strong sense of WHY, they wouldn’t have to resort to such a ridiculous tactic. People who believed in and identified with their WHY would be drawn to them, no mime required.

I talk a lot about using visual concepts to help distinguish your booth at a trade show, but what if that was only half the battle? According to Sinek, having, communicating, and embodying a clear WHY is what really makes your company stand out.

These checks weren’t unexpected.  They were payments from stores for jewelry I had sent them in March.  These were checks rolling in from my NET 30 accounts.  And these checks now form the bulk of the income from my jewelry business.

What is NET 30?

Once you start wholesaling your products, you’re likely to run into stores who ask if you offer “terms.”  What this typically means is will you extend NET 30 credit to the store.  NET 30 means that you ship a store’s order, and they have 30 days to send you payment in the form of a check.  (Some larger companies may request NET 60 or even NET 90 – meaning they have 60 or 90 days to pay.)

While I don’t recommend extending NET 30 to first time wholesale buyers (for those I request a credit card up front), I do like to move regular accounts onto NET 30 after a few orders.

Obviously, there are plenty of reasons stores like NET 30.  It gives them 30 days to sell product and recoup some of the costs before they have to send a check.

But as a maker, I find plenty of reasons to love NET 30 too:

1.  More money in my pocket. It’s not uncommon for me to have wholesale orders of $500 or more (and some are over $1000).  If a buyer pays with a credit card, that’s money I lose on the credit card fee.  When a buyer pays NET 30 with a check, the full price of the order goes into my account.

2.  It’s easier to get the order out the door.  Sometimes, it can take a few days of playing phone tag before I track down someone who can give me the credit card information for an order.  With NET 30 accounts, I just make, pack, and ship.

3.  Money comes in even if you aren’t working.  Because my business is primarily based around wholesale, I had wrapped up my busy production season last year by the first week of November.  I was even able to take the entire week of Thanksgiving off.  (Not something that can be said for my friends busily prepping for holiday retail shows.)  But during that week off, I was far from concerned about not making money.  I had plenty of NET 30 orders rolling in to make November my biggest month that year to that point, even though I didn’t do much work.

Despite all the reasons that I love NET 30, I know plenty of makers who still find it a little scary.  After all, there are a few legitimate concerns.  Can you afford to spend the money up front for supplies, and only get paid a lot later?  What do you do if someone doesn’t pay?

When it comes to making NET 30 work for your business, there are a few guidelines to keep everything running smoothly:

1.  Only extend NET 30 to qualified accounts.  As I mentioned above, I don’t typically extend NET 30 to first time buyers.  When you offer NET 30, you are offering a store credit.  And it’s important to build a relationship with stores before you offer them credit.  (There are exceptions to this rule.  I sell to a lot of museum stores, and their accounts payable system is only set up to handle NET 30, so I grant it from the start.)  For any store looking to go NET 30, you’ll want to ask for a credit sheet.  This sheet details their banking information, as well as references you can use to check them out.

2.  Keep detailed records. When you send out a lot of orders on NET 30, it’s important to keep detailed records so you know who’s paid and who hasn’t.  I keep a master Excel spreadsheet of all my business income, and one page is specifically for keeping track of wholesale orders and NET 30.  I keep a list of all outstanding accounts and when payment is due.  That way, I know at a glance how much money is coming in and who is late on a payment.

3.  Balance NET 30 with credit card orders.  Even though I like having the bulk of my accounts on NET 30, it’s nice to have a few that pay via credit card for the quick influx of cash it provides.  Since most NET 30 accounts will be stores you’ve established a relationship with, it’s critical to always seek out new stores, since these will be the most likely to pay with a credit card.

What do I do if someone doesn’t pay on time?

The first thing to do is not to panic.  I usually give stores a few extra days to even a week just to account for mail time.  My experience is that most checks will roll in over that time period.

If you’re still waiting on the check after that, you’ll need to call the store.  Be firm but polite and let them know that you’re still waiting on their check.  You can also resend the invoice as a reminder. (Be sure to mark it PAST DUE.)

In the time I’ve been selling wholesale, I’ve never had a store fail to pay.  (I think a lot of this comes from building my business through trade shows – there’s a level of trust that takes place when you see someone on a regular basis.)  But if this happens, your only real recourse is to sue to try to reclaim the money (or the product).  Depending on the amount of the order, this may or may not be worth it.

But luckily, for every occasional horror story you might hear, there are plenty of excellent stores who pay on time and are great to work with.  So the next time an existing account asks if you’ll offer terms, don’t shy away from it.   It can actually be a really smart way to build your business.

My booth has evolved a lot since I started doing trade shows, but I’ve finally settled on a display that works for me. (Though this particular booth is actually a modified version of my main New York Gift booth.)

There are a few other things about my booth that didn’t make it on the video but are also really key. (If you’re reading this post via RSS, you may have to click through to see the video.)

The first is that the shipping crates that double as display tables also have one more added feature – they have plenty of hidden storage! This is great for stashing order writing supplies, line sheets, and of course drinks and snacks.

The second is that every display fixture in my booth is custom and handmade. (Either by my husband or myself.) I think that there are plenty of different solutions when it comes to show displays (hello, Ikea!) but I love the idea of having handmade, unique fixtures to compliment handmade unique products. Plus, when you make your own displays, whether it’s tables or smaller fixtures, you aren’t limited by traditional sizes and availability.

Now that I’ve shared some of my favorite booth design principles, it’s your turn. What secrets do you have for making your booth look great and your shows easier to manage?

But I understand that doing a show (especially a trade show) is a big financial commitment.  And in the comments, someone asked “how many chances should you give a show before pulling the plug?”

The short answer is, I think 3 shows is a good commitment.

Often times, stores will want to see you several times before they’re willing to commit some shelf space to your products.  (They don’t want to make room for you in the store if you won’t be around for the long haul.)

But the more complicated answer is that sometimes you do need to bail after the first show.  But in order to figure that out, you need to ask yourself, “was it me or the show?”

And you need to be realistic about this.  It’s easy to blame the show, when your lack of success may have more to do with your own lack of pre-show marketing, less than stellar booth design, or some other factor that is in your control.

So here are some questions to ask yourself when evaluating whether or not to give a show a second (or third) chance:

• Was your product a good fit for the show? Was the aesthetic a good fit?  Were the other products in a similar price range? Ideally, this is something you want to figure out before applying to a show in the first place.  But sometimes, that doesn’t happen.  If you’re work just isn’t a good fit for the show, then no amount of sticking it out is going to make that show successful for you.  Instead, look for a show that’s a better fit.
• Was there traffic? Did other vendors write orders?  Was there traffic in other areas of the show (just not by your booth)? You don’t want to waste your time on a show that isn’t bringing in the buyers.  But a bad location or lack of pre-show marketing may be just as much to blame for your lack of traffic.  So when you evaluate traffic, try to figure out if other vendors were writing orders, or if certain areas of the show did see more traffic.  If that’s the case, work on improving your marketing and booth design, or ask for a new location at the next show.  If traffic was low all around, you should think about picking a better show.
• Did you do enough (or any) pre-show marketing? Just showing up is not a solid strategy for a successful show.  Slow sales may just be a result of your lack of marketing.  I understand that it can be hard to get marketing out the door when you’re struggling with prep for your first show.  But try beefing up marketing efforts for you next show before you just disregard the show entirely?
• Is there some post show follow up you can do? Ok, so maybe you didn’t walk out of a show with a lot of orders.  But did you get some good leads?  Was there interest in your products?  Sometimes, all it takes to go from not breaking even to having a profitable show is following up to get post show orders.
• Did the show offer other benefits? So maybe you didn’t write all the orders you wanted.  But perhaps the show resulted in some killer press that helped boost your retail e-commerce sales.

Make decisions objectively, not based on emotions.

As you’re evaluating these criteria, it’s important to look at them objectively.  After the show, it’s easy to feel frustrated (or just plain exhausted) and to let your emotions cloud your decision making.  For instance, instead of just assuming that there really was no traffic,  you could ask show organizers how many attendees there were, and how that compares to other years.  And make sure that you’re actually calculating sales, orders, and expenses, and not just assuming the show was bad.  And don’t forget to include follow-up orders in those calculations.

Most importantly, don’t make hasty decisions about whether to do a show again.  Give yourself a few weeks to process the show, evaluate, and gain some perspective.  Often times, people give up on a show too quickly, when really all they needed was a consistent presence to make the show work for them.

And while I’m writing these with wholesale shows in mind, you can certainly apply them to retail craft shows, trunk shows, or any other event where you’re selling your products in person.

1. Be present.

While I am a huge fan of multiple revenue streams, sometimes you have to focus on just one.  And the hours you’re spending at a show are a good time to do that.  When you spend half your day with your head somewhere else, it’s difficult to get the full experience of the show.

I know it can be hard to resist the temptation to check your email, work on your Etsy shop, or any of those of other things are multi-tasking technology enables us to do.  Especially if a show is slow.

But the buyers who are there deserve your full attention.  It’s a complete turn-off to see have a conversation with someone who’s (not so) secretly checking email behind the counter.

When you commit to being fully present in the show experience, the show will be better because of it.

2. Be positive.

Sometimes a show doesn’t go the way you dreamed it would.  Sometimes it’s just slow.  In those instances, the worst thing you can do is adopt a bad attitude.

Yes, it can be incredibly frustrating if a show doesn’t have the traffic you want, or if the person across from you is writing orders by the dozen while you can barely get anyone to look your way.  But complaining to buyers or your fellow exhibitors isn’t going to fix things.

If you are frustrated with the way the show is going, be proactive.  Ask yourself, “what can I do to make this better?”  Maybe that means rearranging things in the booth to attract more attention, switching up your sales pitch, or sending your assistant out to walk the show in a sandwich board with your product and booth number.  (For the record, I’m mostly joking about that sandwich board thing.  But sending her for coffee wearing your product and carrying a stack of business cards can’t hurt.)

And always keep in mind that the show isn’t over ’til it’s over.  (And usually it’s not over afterwards either.  Follow-up is a key component of show success.)  I’ve gotten great orders or met some important contacts in the last hour or two of a five day show.  Just keep in mind that if your dream buyer shows up on the last day, they’re going to be much more likely to talk to a smiling, happy seller than one who’s scowling as she watches the minutes on the clock tick down.

3. Don’t take it personally.

I’ve mentioned before that when you run a creative business, it’s difficult not to become emotionally invested.  But I also think it’s important to remember that someone’s decision to buy or not buy your product isn’t a reflection on you as a person.

This is especially true at a trade show, where buyers have a whole list of reasons for buying or not buying.  When a wholesale buyer is walking a show, they aren’t thinking just about what they like.  They have to think about who their customer is, what that customer will buy, how much that customers normally spends, and how much money is left in their store budget for the year.  (Plus a whole lot of other things.)

Sometimes a buyer will love your work, but that doesn’t necessarily mean they’ll buy it.  When this happens, you need to remember that it isn’t about you.  Not every person in the world will love or buy your products.  And that’s ok.

Feel free to share in the comments:

What mantras, rules, or attitude adjustments have helped you have a more successful show?