Wholesale Prices

[dawn]

I have been asked to make some bits of glassy pieces and been asked to give them wholesale prices.

I just wondered how everyone works out their wholesale price?

Dawn

[anditsinthefish]

how exciting


There are many calculations you can try and I guess it depends on how expensive your business is to run. For me, its at home and is quite cheap. I don't pay rent or overheads so I just charge for my materials and my time.

My wholesale is the cost of my (materials + time) x 2 and I then double this for retail

Sarah xx

[ARBeads]

Similar to Sarah but also set a minimum order value.

[dawn]

Thank you ladies

[Redhotsal]

I used to confuse wholesale and retail! In other words I'd sell my beads at wholesale and then wonder why I couldn't make any money  if I sold them onto others for retail. It's a common mistake that many of us make. One way to look at it is to ask yourself what is the minimum price that you could sell your work for in order to a) cover all your materials and overheads, b) pay for your time c) pay for the time and resources spent marketing. When you have this figure, this is your Wholesale price. Now double it and you get your Retail price.

So, say you work out a) + b) + c) and it works out to be £3.00 per bead. That's your Wholesale. Now, ask yourself if you are making enough money at this price? Because that's what you will be getting from your new supplier.

Here's the mistake that most people make - and this is why it is often very difficult for people to sell their glass beads and make money: You should never sell your beads on the open market at this wholesale price - you SHOULD double it, and this should be your retail price. Then, if you are approached by a reseller there is still profit for both you and them.

Unfortunately - although many people are wonderfully gifted and talented when it comes to making beads, many of us are complete numpties when it comes to making money. So, too many people are selling their beads too cheaply, which has a knock on effect of depressing the market for the serious sellers. Ultimately then, everyone complains that they are not taken seriously as "an artist" and gets disheartened.

Sorry to be a damp squib. And yes, I agree - set a minimum order.

[Blue Box Studio]

how exciting


There are many calculations you can try and I guess it depends on how expensive your business is to run. For me, its at home and is quite cheap. I don't pay rent or overheads so I just charge for my materials and my time.

My wholesale is the cost of my (materials + time) x 2 and I then double this for retail

Sarah xx

You must have some overheads - electricity for light and the oxycon, gas for the torch, insurance (if only P&PL), a contribution towards replacing worn out/new tools, broadband, training, the list goes on.

I did a marketing course after Christmas and it came with a spreadsheet for working out costs etc - it was quite scary realising what I'd not included.  Not my spreadsheet so don't feel I can share  but am sure there'd be something similar on t'internet somewhere; it's in Excel with tabs for overheads, how to work out your hourly rate and pro-rata for your item etc.