Handmade bead wholesaling - opinions needed please

Heya Kandice :)

Personally I do offer discounts to beadstores. It's more of a "I go to there store with what I have thing".

I used to offer bigger sale discounts.... It just never pays off.... I'll be the first to say bulk bead buys are fun, but sometimes, when personal artists are concerend, it can really wipe you out.

I do offer a 50% off to a beadstore when it's my stock on hand. And sometimes, I would rather just sell to my personal public, but realistically, I have primarily 3 stores that I do this for right now. I could probably have more if I got off my arse and just did it, but then there still that wonderous flaky artist in me that just doesn't seem to get it to run quite like a business.

I LOVE LOVE LOVE being able to connect with the people that purchase my beads, which is probably another reason why I don't end up doing a lot of wholesale bigger buys. Most of the people that are buying my pieces, it's like a "treat" bead or something special.... and I like that.

I think Tink will be able to offer better advice to you - ::bows down to the Goddess of Marketing:: (yes that's you Tink). I just love how she is so great at that... I want to be like her someday. :)

That's my experience anyway, hope it helps some :)

vj found this in rec.crafts.beads, from "Lynda" :

]I LOVE LOVE LOVE being able to connect with the people that purchase my ]beads, which is probably another reason why I don't end up doing a lot of ]wholesale bigger buys. Most of the people that are buying my pieces, it's ]like a "treat" bead or something special.... and I like that.

and this is from someone who freakin' KNOWS i can't keep my hands off of her beads. and i don't have nearly enough.

----------- @vicki [SnuggleWench] (Books)

(Jewelry) newest creations: ----------- The measure of the menace of a man is not what hardware he carries, but what ideas he believes.-- Jeff Jordan

Is selling wholesale really the norm for beadmakers? >

Not for me - I no longer discount - except during special sales. I tried it - it didn't really give me much additional sales traffic - and all it did was cause me to loose money on my overall 25% after expenses, taxes, etc.

I really do not see a reason for it -

Cheryl last semester of lawschool! yipee! DRAGON BEADS Flameworked beads and glass

I am new to all of this, but I really don't like the idea of wholesaling. It sounds to me like production work. I guess if I could design a bead and then hire someone to make 100 of them exactly like it, then I might think about it. But I know it would drive me nuts to make 100 or more of the same bead. It's not why *I* got into this - bead and jewelry making for me is a way to get away from the pressure of other people telling me what to do and putting their expectations on me - I only want to deal with my own pressure and expectations - at this point in my life anyway - and even that can be too much sometimes. And to be creative - production work is not creative - in my eyes.

And I guess you would have to weigh how much work you can get done in a week - and what that will bring in with regular street prices vs. what it will bring in if it's wholesale. I mean, you can only get so much done in a week. If you can sell all that retail, why take wholesale prices for it?

For you Kandice, I *think* if you didn't have a following and a huge demand on your work already, wholesaling might be a way to get a following and a (more?) steady income - but since you already have loyal fans and prices are wonderful for you - then I'm not sure why you would want to work just as hard or harder and take less for your beads.

Unless of course you are looking for an aprentice or someone to do the grunt work....

Of course I don't know your situation, but maybe the question is - how much can ebay handle - if you put more beads up a week, would they all sell? Or do you need to find new retail outlets for your beads? Tradeshows, galleries, etc.?

I would suppose it would depend on what you mean by "wholesale". If you (non specific) are selling at retail prices, then wholesale makes sense. If that is not the case, you should sell the beads at wholesale in bulk -- you, know, same as what you ask for (often opening bid).

It also makes sense to give a discount, if you don't have to put as much into the sale (fees, time, etc).

Tina

Well, I certainly don't *feel* like the Goddess of Marketing. Made me grin though. LOL!

I have to echo Lynda's statements here. I do keystone, but it's from stock on hand. I don't do special orders as a rule, though I make rare exceptions for particularly special folks.

I don't do consignments, though for an opportunity for high visibility placement in a gallery I have been known to come up with imaginative options.

I also rent myself out for a day at a time: Customers can purchase all my output from a particular day for a set price. They are guaranteed a minimum of "x" number beads and I am guaranteed "$x". It's really a rather freeing arrangement, which works spectacularly for me. I benefit from the total freedom of expression I experience and the customer benefits from this, too. Ironically, I have found I make more beads and often better/cooler/more interesting beads when working this way.

I guess the bottom line is that what works great for one person might drive someone else nuts. To be honest, I run my glass business in much the same way I ran my teddy bear business. I had almost twenty years to figure out what worked best for me, and so far I've found everything translates to this venture.

Tink (Still basking in the Sharon Peters glow)

Like I said in my post, wholesale to me means 40-60% off a large quantity of beads. Why exactly does wholesaling make sense to you? I'm trying to get a sense of what the general beading public tends to think about this type of thing - mostly because I have been wrestling with the idea. I get so many requests for wholesale - but right now, it just does not make sense for me. I don't have stock on hand. Everything I make either goes immediately for sale on my website (lasts about a day or two before selling), or to ebay. On ebay, I usually get prices that are just below retail. So basically, I am trying to figure out why it seems not to make sense to me, and trying also to get a general idea of why others do or do not wholesale. I also like to get the opinions of buyers.

vj found this in rec.crafts.beads, from "Kandice Seeber" :

]I also like to get the opinions of buyers.

honey, if i ever got enough dollars together at one time to do wholesale lampwork, believe me, i'd jump on it. i have a list of lampworkers i'd like to do that with. the LIKELIHOOD of that happening is probably pretty slim right now, unless the lady at the jewelry store REALLY wigs out over what should be arriving tomorrow.

----------- @vicki [SnuggleWench] (Books)

(Jewelry) newest creations: ----------- The measure of the menace of a man is not what hardware he carries, but what ideas he believes.-- Jeff Jordan

Check this out:

Pam

I missed your original question, sorry!

I've gone back & forth about wholesaling. Here's my current position (subject to change).

For an individual who comes to my shows (where I've raised prices by 25% to cover show expenses, etc.) I usually give a 10% discount to any purchase over $100. I don't *offer* it as an incentive, I just knock it off when I'm writing up the receipt. Kind of a nice little treat to someone who's willing to buy that much.

I won't do large scale wholesaling at shows anymore. I had a minor ordeal with buyers from one store at Tucson and it really caused me to think all of this over. I understand their wanting a "break" but I need to cover my financial posterior, too. I'm about to put this new policy in effect in March, when I revamp my Ebay store and website. From April on, I'll give a wholesale discount of 30% to anyone willing to order $300 or more of my regular bead styles. That won't include auctions or other odds & ends, just my regular stock. I'll be asking for a 50% deposit, make the order, then get paid the balance prior to shipping. I'm willing to do exchanges on any beads that aren't "acceptable" but no refunds. I am NOT WalMart! Also, the prices on my website (which will go up a bit in April, too) are about as close to rock-bottom as I can get. There's a small pad of profit built in, according to my formula, but not buckets o'cash. For me, I feel it's fair because my costs are so darned low. Especially since they lowered the prices for store items. With the inclusion of my website, my ebay store and listing fees, my monthly "internet overhead" is about $25. That doesn't include Paypal and Ebay FVF, but together that's about 6% of my price. Helluva lot cheaper than a $300 show, plus gas, plus hotel. So, I pass MY savings on to my buyers (cuz I loooooove my buyers!)

All of that said, giving much more of a discount would cut my throat. However, there's a nice security in knowing that I can get and additional $300 if I knuckle down and PRODUCE for a few days. $300 of my average beads comes out to about 15-20 beads.....two days' work at most. And a sure thing cash-wise at the end. I can live with that! I still make a teeny bit of profit and I KNOW the money will be there, so I figure it's worth it.

That's it, in a long-winded nutshell.

To me, lampwork for wholesale prices is like any art glass......you'd sell wholesale to a gallery, perhaps, if that's the route you choose.

But it's art. Selling it wholesale doesn't make sense to me, even as the jewelry-maker that I am. I'd love to buy lampwork wholesale, but it's one-of-a-kind art, and I would not do it if I did lampwork.

I don't sell my jewelry wholesale. It's one-of-a-kind art too. ~~ Sooz

------- "Those in the cheaper seats clap. The rest of you rattle your jewelry." John Lennon (1940 - 1980) Royal Varieties Performance ~ Dr. Sooz's Bead Links

Well, as a store owner, I am kinda into the wholesale aspect. ;o)

I think if a lampwork artist was interested in selling in quantity to stores, they should consider some of the following...

Are you interested in making a large chunk of beads on demand? Are you interested in making something just to appease the buyer? Are you willing to let your beads go to people/companies who will price them as they see fit, and not based on what you may feel is a fair price? Are you willing to deal with the paper work?

You should also have a pre-established business format. What will be the minumum order amount? Will you offer accounts? 30 days? 15 days? Will you offer replacement of the bead on their behalf? (they sell to Dora, Dora breaks the bead (but we don't know how) the company asks you to replace because they think the bead may have been defective) Will you offer premade beads for sale? Or will you offer to send a lot to the buyer for them to choose from? Will you offer exclusives to the buyer?

I do not intend to make this sound like its something difficult, but I think you should consider all aspects, including the demanding, hard to deal with, buyer. I also think you should think long and hard about offering accounts to beadstores. (and that is all I will say about that...lol)

Beki

Excellent questions, Beki, and great food for thought!

I don't mind small-scale production work. To a point, on the right day. When I restock my show trays that's pretty much how I work. As long as I get my "breaks" to just mess around, it's all good.

I figure price setting by the stores is what they're there for. Once I write "sold" on the receipt it's no longer my call.

The rest, I have to cogitate on. Thanks for the mental munchies!

KarenK

vj found this in rec.crafts.beads, from "Karen_AZ" :

]I figure price setting by the stores is what they're there for. Once I write ]"sold" on the receipt it's no longer my call.

that's what Lynda keeps telling me!

----------- @vicki [SnuggleWench] (Books)

(Jewelry) newest creations: ----------- The measure of the menace of a man is not what hardware he carries, but what ideas he believes.-- Jeff Jordan

Hi Kandice.

Traditional wholesaling does not make sense to me with handcrafted items of this nature. That is, every aspect is handcrafted, labor intensive and many times not able to be reproduced.

A very successful polymer clay bead artist told me that it's hard to wholesale because it takes the same amount of time to make additional pieces, unlike with other wholesale items that are maybe, cast in a mold or pressed on a machine. She said she 'might' 'wholesale' by taking 20% off her retail price if there was a minimum amount purchased.

Someone ordering a greater quantity from me at wholesale pricing doesn't do me much good. It still takes me the same amount of time to make them. I would be willing to do a large order, perhaps for 10-20% off retail, but I'm finding that it's tedious to work from a catalog of items.

It might make sense to someone who it doesn't matter how much $$ they bring in overall? Or maybe someone trying to make a name? The thing is, and you probably know this, if you sell true wholesale, you probably shouldn't sell your pieces outright for less than double that because then you'd be competing with your wholesale accounts.

Do what YOU want to do! You don't have to do it the way anyone else expects or the traditional way. It's hard to turn business away, but it doesn't sound like you need to take half of what you're getting right now, for any reason. Sounds like you're doing just fine.

Oh, and one more thing...your sets are beautiful and if you get a huge wholesale order, just remember that the time it's going to take you to fill that order will take away from time that you can make beads that will go for full retail. Hm. That one just hit home for me.

Good luck!

That's a great article - thank you for posting it. It pretty much mirrors my standard policy with a few minor variations.

Thanks to everyone who has answered so far. :) It makes me feel a lot better to know that there are many other lampworkers who feel the same as I do about wholesaling.

Here are my current thoughts on the subject - admittedly copied from an email I wrote to someone the other day:

"Basically, I have to work about the same amount of time, no matter what my pricing is. I have to make beads, take pictures and market them. If I offered wholesale to customers who wanted to buy a whole lot, I would still be working the same amount of time and putting forth the same effort that I would for those who purchase at full prices. This is my dilemma. I do realize the benefits of offering wholesale. I just don't think I have the energy to do production work. I dislike it very much. And right now, I can and do get many customers that will pay full price, or buy from me via ebay for a discount. Not many have opted to take advantage of the 15% off $300 deal, and that really is okay with me. I have done specials and offered sales and such as well. I've also been approached several times for a compromise - someone would offer to buy several sets totalling much more than the $300, so I let them have a larger discount. This is a hard topic to discuss, because I have been given such varying opinions from people. I am finding that many jewelry designers who are in business have the opinion that wholesale is necessary, and people who make and sell lampwork have opinions more on the other side of it. This is my art. It's not a mass-produced product where more volume equals less cost. The costs to me are the same (generally) no matter how I choose to price the beads. However, I really do understand the need for designers to keep costs down. But you know - it's also a matter of supply and demand. Where I am concerned, the demand is high (almost higher than I can keep up with) and the supply is low (i.e. I am only one person and can only produce so much in a span of time). So prices have to stay higher or I will collapse under the pressure, because demand will go up as the price lowers."

I asked this question because I have been told by a few people that offering wholesale discounts cuts down on work and is a good deal for everyone involved. After thinking long and hard about that, I have to disagree - but only where I am concerned. I have no issue with anyone else doing it, of course. Anyway - feel free to keep discussing this issue - I think it's really worthy of discussion so customers can see where the artist is coming from and vice-versa. It's a great dialogue to have.

Mothwoman does half on $500 orders, as well as lesser discounts. That's half of the price on her site.

almost at the very bottom. Tina

Well, wholesaling makes sense to me because it means I (et al) don't have to do the work of retailing. And since I don't feel up to retailing, all my work is wholesale. My normal price when I take it to a shop is the wholesale price. So if I sell a few right now, I sell to a retailer at wholesale. If I sold a dozen pieces for over $1,000.00, I would also sell for that same wholesale sale price. I would only give a price break if 1)I were selling for retail prices, or 2) I raised my prices.

And almost any retailers doubles the price they pay (wholesale). So if you don't think your beads can retail in someone's shop for twice the price you're asking, or if the buyer for the shop doesn't, well.......... And also with most arrangements, you are not allowed to undersell the places where you market your beads. You would be selling your beads at a price that competes unfairly with the people you sell to. A No-No.

In that case you would have to advertise your beads only at full retail on your site, though you could start them lower on eBay. (They also require that you don't undersell them, don't they?) And could offer quantity (in beads or dollars) discounts.

See that's what I meant when I said it depends on how you define "wholesale". If you do the retail work, you make the retail profit. If someone else does the work of retailing, they get to make the retail profit.

Tina