Wholesale shows? Anyone do them?

[Grundsau]

I'm reluctantly kicking around the idea of trying a wholesale show sometime to get more exposure.
Has anyone tried them?
I don't like the idea of of wholesale pricing but it doesn't seem much different than consignment sales.
The attractiveness of a wholesale show is that the customer is vetted and there to buy.

The artisan shows that I do seem to go well and the setting up for a wholesale show shouldn't be much different.
From what I've been reading some shows allow you to sell and take orders.
Any tips on what to expect?

I already accept credit cards via smart phone.
An iPad is used at the artisan shows with a running slide show of images of my work and some shots of the smithy which act as my folio.
The ipad really attracts attention.
I plan to add my Etsy and Facebook page to my business cards which already have website, phone and name on them.

Had planned to have two or three levels of wholesale pricing.
One to three items at a higher price, and a bigger price break for four or more.
If it's a huge order I'd be willing to do a little better.

[HWooldridge]

I got started in blacksmithing by producing wholesale work for the craft trade - mostly triangle bells, ringers, wall hooks, etc.  At that time (over 30 years ago), I would sell a triangle and ringer for about $3-$4 per set, depending on size.   Production requires a different mindset from one-off commissions but you get really good at basic forging - similar to what apprentices likely did 150 years ago.  This will then translate to better skills over time - I forged thousands of points by hand, which in turn helped me make scrolls when I began producing custom work.  You need to think about custom jigs and fixtures to make the work go quickly and you may want to invest in more machinery - such as an ironworker or hydraulic bender to speed the work.

[swedefiddle]

Marketing is a whole world, all in itself. Production quantity, don't sacrifice quality, Don't work for free, receive payment for your sales.

A fine line.

Funds must be kept for a rainey day. Insurance, Lawyers, Accountants, Income Tax Installments, Maintaining your equipment and updating.

 

The best thing I ever was told, Pay Yourself. Put money in an account or an investment that is difficult to access, LEAVE IT THERE, LET IT WORK.

It is VERY INTERESTING watching your money grow, by leaving it alone.

 

There is no FREE.

 

Neil

[george m.]

I never distinguish between wholesale and retail in my pricing.  What I have into a piece is a irretrievable part of my allotted time on this earth.  I figure my hourly rate and price accordingly.  If I reduce the price of a piece for wholesale I am admitting to myself that the piece of my life that went into that object is worth less than I had thought.  Generally, my retail prices are low enough that a reseller can mark a piece up and still make a reasonable profit.

 

I am not absolutely immovable on this rule, I will reduce the per piece price for a large multiple order, but I try to use it as a guide and am usually successful.  

[mtforge]

I do a lot of reenactments/rendezvous where I sell retail. But I sell more wholesale than retail. When I make something in the shop I need to make my shop rate. When I sell wholesale it's in bulk and they pay shipping or delivery. When I go to a show I consider that I'm selling wholesale to the retail side of my business. Retail sales need to pay for the item and the overhead of going to the show. Fuel, fees, food, and such. If I have the same prices for both I figure I'm either overpricing the wholesale customer or underpricing the retail customer.

[Grundsau]

Thanks for the tips.
The show I was considering is in February and have decided to wait.
After speaking with a number of sellers who have been in it, cash and carry is what buyers seem to be looking for.
With the holidays, I won't have time to make enough product but am going to go there and do a little recon.
If it looks favorable, there will be a lot more time to get ready.

[george m.]

One last comment:  It has become almost a necessity to be able to accept credit/debit cards.  Get a Square or some other device to be able to these.  Many people don't carry cash or checks any more.  Until I got one I lost quite a number of sales because I couldn't accept that type of payment.

[Grundsau]

Thanks and you are very right.
I've been accepting cards for years thru my photo studio and have both Gopayment and Square.
Credit sales have accounted for approx 50% of income at some of the artisan shows I've done.

[Latticino]

I used to do quite a bit of craft wholesaling as well as retail at some of the better juried shows, not in metal - in hand blown glass, but I believe the principles are fairly similar.  I did both the ACC and Rosen wholesale shows, which, at the time, were arguably some of the better avenues to approaching the wholesale craft market.  At the time internet sales of fine crafts were still in their infancy, and the relatively recent upsurge in fine craft sales online may have changed things.  Typically my annual revenue was split about 50% for each of retail and wholesale.  A couple of things I learned:

1. You can not price your retail work below what the gallery sells those items for without risking loosing those clients.  The difficulty is that while many galleries adhere to a double markup, some have triple markups, and some give fairly deep discounts to their professional clients (designers) or offer periodic sales.  This can make it a bit difficult to price your items for the retail market.  One potential solution is to have a completely separate line that you only sell at retail shows (also works for hitting those lower price points that work well for impulse buys) with a couple of larger attention getters at the full double wholesale price.
2. Make sure you include the cost of the wholesale show fees (space fees, booth [design, construction, maintenance, lighting...], travel, literature, lodging, food...) in your wholesale pricing.  You will be surprised at how much it costs to put together a professional display.
3. Your display must be very well designed, easy to setup and well lit.  Having good quality video showing the processes is a great draw (both for retail and wholesale).  Another tip is to have large scale photos on display of your work (especially if it is small and intricate).  The wholesale shows are typically very large, and buyers have a lot of ground to cover, anything that will attract them into your booth is a big help. 
4. Keep your booth area clean, the more professional the better clients you will get. 
5. Don't over pack your display, leave enough space between pieces to let the buyers see them and imagine them in their own galleries (where they will most likely be packed into displays with other work, but let them dream...) 
6. If you use the same booth design for your retail and wholesale shows  expect to have to upgrade/rebuild much more often.  You may want to rent booth equipment for the wholesale show instead.
7. Doing full out production on smaller items for wholesale clients is brutal and somewhat thankless.  As previously mentioned attempt to tool up to "automate" as much of the labor for this as possible.  My experience is that is was hard to make minimum wage blanking out smaller production items.
8. Be very organized in taking orders from galleries.  Getting triplicate forms is cheap at places like Kinkos, and having a signed order form can save a lot of questions later down the line. 
9. Fill out a central production schedule as you take orders, nothing is worse for a new client than not being able to meet a deadline you have promised.
10. Have something for the shoppers to take away with them.  A wholesale price list and drawings or good photos of your work on card stock at a minimum.  Include your booth number and contact info on the price list, the shows are typically multiple days and buyers will have to find you.  Also include your payment terms (in 12 years of retail shows I only had one bounced check, galleries were much more often late in payments, or had the checks get "lost" in the mail).
11. Check out the shows before you signup for both retail and wholesale.  Other peoples work needs to be a similar level of quality and to some extent price point.  It is hard to sell $2,000 sculptures at a show populated with beer can birdhouses and tie-die tee shirts, not to mention imported goods being rebranded as hand crafted.
12. The last report I got from a fellow craftsman who was at a formerly good wholesale show in 2014 (ACC) was that both attendance and sales from buyers have plummeted.  This was both from their experience and an informal survey of other folks doing the show.
13. Don't leave your booth unattended. Should be obvious, but I've seen it happen dozens of times.
14. Selling is tough.  Try to get someone else to do it with, or for, you if you are not good with people (fortunately my wife was excellent). 
15. It can be very difficult to break into wholesaling, as some craft galleries are reluctant to buy from someone that they haven't already had a track record with, or have seen at the shows for years.  My first year selling wholesale was quite an education in patience.  Be prepared to sit for a couple of days at a show, with a smile on your face and few, if any, sales to attract that last minute shopper.  Most buyers will go to their regular suppliers first, both to see what is newly offered and to get into their production schedule.  As a new wholesaler you are far down on the totem pole.

Good Luck

[Grundsau]

Thanks latticino.

[njanvilman]

These are great selling points that can be applied to any sales, whether wholesale or retail.  It is always a problem to get people to part with their money.  One point that I always do is to price every item very clearly.  When someone looks at an item and the price, they are selling themselves if they want it.  If the item is not priced, and they have to ask, very often they will not and walk away.  Think about shopping in a grocery store...everything is priced on the shelf very clearly.  When you take an item, you know the cost and have committed yourself to buying it.  You do not have to ask anyone.  Same goes for iron products, or any craft items.

[mtforge]

These are great selling points that can be applied to any sales, whether wholesale or retail.  It is always a problem to get people to part with their money.  One point that I always do is to price every item very clearly.  When someone looks at an item and the price, they are selling themselves if they want it.  If the item is not priced, and they have to ask, very often they will not and walk away.  Think about shopping in a grocery store...everything is priced on the shelf very clearly.  When you take an item, you know the cost and have committed yourself to buying it.  You do not have to ask anyone.  Same goes for iron products, or any craft items.

Very good point. I also link into my business program with MS Access and make up price tags with descriptions on them. These are cut, punched and hung on the items or attached to the box the items are in. This will educate the public on what the item is. I get a lot of questions on rush lights, betty lamps and how does this toaster work?

[george m.]

One thing that I'd like to add is to examine any contract with a gallery VERY carefully.  I have reviewed some for artist friends and they were very favorable for the gallery and not very protective of the rights and interests of the artists.  I have had some galleries accept my suggested changes and some that had a take it or leave it attitude.  My advice to the artist was to leave it.  If their work is good enough that one gallery will want it other galleries will want it too.

 

In particular, make sure that if you are getting a percentage of the agreed upon selling price that the net amount remains the same no matter what sales or discounts the gallery puts on the piece.  Also, make sure that you get a copy of the sales receipt or invoice.

 

Don't be afraid to sit down with the gallery and discuss all aspects of the contract.

 

In well run retail art sales there is enough money to be made by both the artist and the gallery without one having to screw the other.