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I recently highlighted the differences between wholesale and consignment arrangements in craft businesses.
Crafters are in a unique situation when offering wholesale pricing, as most of us work alone and do not have machinery that speeds up our process.
Today, I am sharing a list of things to consider before selling crafts wholesale.
Table of Contents
10 Things to Consider Before Selling Crafts Wholesale
Not All Products are Good for Wholesale
For example, you wouldn’t offer one-of-a-kind or custom products at wholesale pricing.
Time Intensive Products are Not Good For Wholesale
Whether it takes a long time to dry, a long time to weed, or a lot of design time – products that take a long time are not good for wholesale.
Be Selective with Your Wholesale Products
If you decide to dive into the wholesale market, you do not have to offer every product you make at a wholesale price.
Set Minimum Order Amounts
Consider a condition for wholesale orders that they must order a minimum number of the same exact item – including size, color, and design.
Price Accurately
Your products must be priced accurately to ensure that you still make a reasonable profit. If you accidentally price an item too low in a retail setting, you can adjust the pricing after selling one or two items. Unfortunately, you may take a much higher loss if you place your wholesale prices too low.
You Must Buy Wholesale to Sell Wholesale
You must get your blanks at wholesale prices to be able to offer wholesale pricing. Put another way: You can’t buy a shirt at retail price, embellish it, then sell it for a wholesale price.
Know Your Machine Limitations
The Silhouette and the Cricut both have limitations – know them. You may need to upgrade to a Silhouette Cameo Pro, or an even larger machine.
Similarly, extra large orders of some products are better done using alternative methods. For example, an extra large t-shirt order may not be as profitable as ordering transfers then applying them due to the labor involved. I went in depth about extra large orders earlier on the blog.
Work Assembly Line Style
When creating wholesale orders, consider working “assembly line style”. This means that you would cut all the designs first, then weed all the designs, next you would apply all the designs, and lastly you would package all the designs.
Use Time Saving Software Features
The Silhouette Studio Business Edition has some time saving features that may help you when creating multiples of the same item. You can read lots more about it in a previous series of posts.
Incorporate Your Business
Businesses are more likely to buy from someone who has registered their business or has incorporated. If you haven’t made your business official yet, read about some of the benefits.
Wholesale vs Consignment
If you decide wholesaling doesn’t work for your business, have you thought about consignment? Read more on the differences between wholesale and consignment.
Unique Wholesale Arrangements
Wholesaling products doesn’t always have to mean selling to a store that resells your item. Continue on and read a list of unique wholesale arrangements that you can likely find in your own town.
Since 2015, Christine Schinagl has been helping crafters start and run craft businesses through her blog, Cutting for Business. As a Silhouette and Cricut crafter herself, she has a unique take on what works and what doesn’t work in the craft business world. She also enjoys teaching other crafters how to create digital SVG designs, available at through the Design with Me series.