MSEL: Wholesale

msel_hipsta

After last week’s post about the figuring out the best ways and places to sell my work, a few people directed me to information about selling wholesale. But they didn’t realize that I’ve sold wholesale before – and in a big way.

From 2000-2004, I had a wholesale stationery business. I sold nationally, to stores like Anthropologie, Paper Source, and Kate’s Paperie, and, after four years, found that wholesale just wasn’t the route I wanted to go any more. Here’s why:

  • Seasonal releases – I was putting together my Christmas collection in March and April because buyers for many stores make their holiday purchases in May.
  • Trade shows – I participated in 3-5 trade shows per year. In 2004, the total cost for a tradeshow I needed to travel to was around $7,500. This included booth fees, travel and lodging, booth décor and booth freight to the convention centers.
  • Sales reps – Sales reps represent a number of lines, and sell to stores within a specific region or territory for a cut of the sale (usually 20% for paper goods). A lot of store buyers prefer to meet with reps, rather than deal directly with the manufacturer. Reps need line sheets and samples and new products (so they have an excuse to call on their customers). And reps also needed incentives to present and promote my products.
  • Terms – Many stores expect to be extended net 30 terms after their first order, which means that I didn’t receive payment until 30 days after I’d shipped the store the merchandise. In other words, I had to pre-order quantities large enough to fill orders, then send the order to the store and wait 30 days to receive payment.
  • Larger production runs – Because of the volume at which I was selling, I needed to order fairly large production runs. For example, one collection might have 24 cards in two different sizes, and I’d need to print 2500 of each in order to get pricing which allowed me to hit my margin. However, some designs sold better than others and I’d have to reorder some pretty quickly, while others languished in inventory.
  • Cash flow – cash flow was always a problem because of terms, large production runs, constant new releases, and trade show fees.
  • No time to create – My business was always in the weird in-between stage – it was too small for me to hire an employee to help with customer service and order fulfillment, but too big for me to be able to do everything on my own. I spent a lot of time inputting and packing orders and not enough time on illustration and product development. I’d gotten into this because I love creating products; often, this was the last thing on my list of priorities because I needed to keep the money coming in.

The point I’m trying to make is not that wholesale is bad (it’s not), just that it’s not for me. Not right now. Selling wholesale was necessary for my stationery business to succeed. I had a low-cost product (anywhere from $2.25-6.25 wholesale) and needed to sell large quantities of products to keep the lights on. But what I’m doing now is different. I have higher-priced items that are produced in smaller quantities. That changes how and to whom I sell.

I’d like to keep my business small enough for me to largely manage on my own. I want to keep production small – with me continuing to print everything by hand. I want to work with a handful of retailers that value my “small-batch” production. I want to continue to sell directly to customers. And if I want my designs to have a wider reach, there’s always licensing (which is a whole separate blog post).

There is a way to do this (this post from Design for Mankind describes a clothing designer who has been successful at it) and still make a living. It will take time and a lot of focus. It will take careful marketing and long-term relationships with the stores I sell to – in addition to really great products people want to buy and sell.

Am I up to it? Yes. Yes, I am.

37 thoughts on “MSEL: Wholesale”

  1. I’m amazed, I have to admit. Rarely do I come across a blog that’s equally educative and
    engaging, and let me tell you, you have hit the nail on the head.

    The problem is something too few people are speaking intelligently about.
    Now i’m very happy I came across this in my search for something relating to
    this.

  2. I think that what you published was actually very reasonable.
    But, consider this, suppose you were to write a killer headline?
    I mean, I don’t wish to tell you how to run your website,
    however what if you added something that grabbed folk’s attention? I mean MSEL: Wholesale | Jen Hewett, printmaker, surface designer,
    textile artist is a little vanilla. You might glance at Yahoo’s home page and
    see how they write news headlines to get people to open the links.
    You might add a related video or a pic or two to grab readers interested about
    what you’ve written. In my opinion, it might bring your posts a little
    bit more interesting.

  3. Can I simply just say what a comfort to find an individual who actually knows what they are talking about on the web.
    You definitely know how to bring an issue to light and make
    it important. A lot more people should check this out and understand this side of your story.
    It’s surprising you aren’t more popular given that you certainly possess the
    gift.

  4. This is the right website for everyone who would like to
    understand this topic. You know a whole lot its almost tough to argue with you (not
    that I really will need to…HaHa). You definitely put a new spin on a subject that has been written about for ages.
    Wonderful stuff, just excellent!

  5. I simply want to say I am very new to blogging and absolutely savored you’re web site. Likely I’m going to bookmark your site . You really have incredible posts. With thanks for sharing your web site.

  6. There are some interesting times in this write-up however I don?t know if I see all of them facility to heart. There is some validity however I will take hold opinion up until I check into it additionally. Great article, many thanks and also we desire extra! Included in FeedBurner too

  7. The next time I learn a weblog, I hope that it doesnt disappoint me as much as this one. I imply, I do know it was my choice to learn, but I truly thought youd have one thing interesting to say. All I hear is a bunch of whining about one thing that you would repair in the event you werent too busy on the lookout for attention.

  8. Today, I went to the beach front with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  9. Today, while I was at work, my sister stole my iPad and tested to see if it can survive a forty foot drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!

  10. Oh my benefits! an incredible short article man. Thanks However I am experiencing problem with ur rss. Don?t recognize why Not able to register for it. Is there anybody getting similar rss problem? Any individual who recognizes kindly respond. Thnkx

  11. After research a few of the post on your internet site now, and also I genuinely like your way of blogging. I bookmarked it to my book mark internet site checklist and will be examining back quickly. Pls look into my web site too and also let me understand what you think.

  12. After study a few of the article on your site now, and also I genuinely like your way of blog writing. I bookmarked it to my book mark site list as well as will be checking back soon. Pls look into my internet site also and also let me understand what you think.

  13. Just desire to say your article is as surprising.
    The clearness in your publish is simply spectacular and
    that i can assume you are an expert in this subject.
    Fine along with your permission let me to grasp your feed to stay up
    to date with coming near near post. Thanks 1,000,000 and please keep up the rewarding work.

  14. You made some really good points there. I looked on the internet to find out more about the issue and found most individuals will go along with your views on this website.

  15. I have to thank you for the efforts you have put in penning this site. I’m hoping to see the same high-grade content from you later on as well. In fact, your creative writing abilities has encouraged me to get my very own site now ;)

  16. Good post. I learn something totally new and challenging on blogs I stumbleupon everyday. It will always be interesting to read articles from other writers and practice a little something from their websites.

  17. Howdy! This article could not be written any better! Going through this article reminds me of my previous roommate! He always kept talking about this. I am going to forward this information to him. Fairly certain he’s going to have a very good read. Many thanks for sharing!

  18. Having read this I believed it was very enlightening. I appreciate you taking the time and effort to put this short article together. I once again find myself personally spending a significant amount of time both reading and posting comments. But so what, it was still worth it!

Comments are closed.

Scroll to Top