Saturday, May 23, 2009

Can I Afford to Sell Wholesale?

I have my first wholesale order coming up and it's caused me no end of concern.

A company that hosts group purchases contacted me about six weeks ago asking about my wholesale prices. Many small pattern companies wholesale only on large qualities. So if a small business owner wanted to buy just three or four of each pattern to see how they sell, they'd be out of luck.

The company that contacted me, has a running database of all the companies they can purchase from for wholesale. Then their members, of which there are hundreds, can just purchase a few items to try them out. The company has cut off dates of every 6-8 weeks when they send in a single order that is shipped directly to them. They sort and reship to the individual businesses, for a small per item fee.

It's really a great set up.

A week or so ago, I followed a backlink out to their database and found that my patterns were being offered in sets of four (4) and that I had any where from five to size orders for six or seven of my patterns. Then I noticed that my current sales were "cut off" which means they are in the process of placing the order.

This entire month, I've been half excited and half terrified, trying to imagine how big my first wholesale order would be. The number one issue is the work involved in putting out that many patterns (150-200 patterns). To give you some idea, while I sell around 20 patterns a week, half of them are electronic. I only make and ship out around 10 patterns a week. (I use to do double that, but the economy sucks!)

With the deadline luming, I am looking at completing 15-20 weeks worth of work in under a week . . . while Steve is not home and I have constant care of Will. Definitely a challenge.

The other consideration is cost. Standard deduction for wholesale patterns is 50%. So I am working my ass off for half as much money as I normally get for a pattern. I will end up using months worth of ink, paper, toner, and plotter paper for this one order. All of which, I will have to replace almost immediately.

I've had both my major printers going 16 hours out of the day for the last three days. I've gone through an entire box of four rolls of plotter paper ($60 value) and six reams of paper ($20). I've already had to replace my Cyan toner ($35) and an ink cartridge ($25). My drum is also on it's last leg and will probably need to be replaced tomorrow ($150). Fortunately, I had all these items on hand as I buy them when I get a good discount.

While most of the printing will be done by tomorrow I will still have a day or two of work ahead of me. I have to finish folding all the patterns. Then I have to heat press them, assemble them, and put them in plastic bags.

Why bother with the hassle?

I've asked myself that same question several times the last few days. Sadly, I have some good answers.

  1. Each pattern contains my web address, so who ever they are sold to will be able to find my site and purchase more and different patterns.
  2. If the store owners like my patterns and they sell, they will increase their purchase next time.
  3. Store owners and customers will tell others about my patterns.
  4. Why not? I'll try anything twice -- just to make sure the first time wasn't a fluke.


Will it be worth it? We'll just have to wait and see.

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