Good Morning Business Fam! Today I want to talk to you aspiring entrepreneurs about selling your items in bulk! Are you starting to have shops inquire about purchasing from you for resale? Have brides-to-be started asking about wedding favours?
If it hasn't happened yet, it will soon and its ALWAYS best to be prepared. So, here are the different options most that you will most commonly run into:
Wholesale: This is a reduced price that you sell your products to retailers and stores at. Most commonly it is about 50% off but you can choose what is right for you and your business. Personally, I sell my products at 35% off regular price to stores and retailers. This is for the following reasons: My products are extremely unique, hard to find, I only work with a limited number of stores and the price of materials is quite high at the moment. Like I said, find out what works for you. I would advise you though to make your wholesale price at least twice as much as your cost. So, if it costs you $5 to make your product you should sell it for no less than $10 so that you are getting paid for your time.
Consignment: This is when you allow a retail space to sell your products and pay you for the product at an agreed upon percentage once it sells. In this situation you would normally leave your products with this retailer in their shop, since they have not purchased your product you can swap things out and change up your products more frequently. You must be sure to discuss what happens in the case that items get broken or stolen as they are not in your daily care. The percentage for this can also vary, though most often it is somewhere between 15%-40%. Personally I do 35% and this works well for me.
Bulk Pricing: This includes any bulk order from a person, not meant for resale but most often for gifting. Wedding Favours, Engagement and Bridal Party Gifts, Gender Reveal, Baby Showers, Birthday Parties - Literally any event that people buy favours or gifts for. Now my first impulse with these orders was to discount them to my wholesale rate, but seriously - Don't do this. Most of the time people inquiring do not expect that large of a discount and you are leaving money on the table and overworking yourself. What I have found to work wonderfully is a discount scale. So, if a client is looking to bulk order - The discount that they get is entirely based on how many products they will need. Here is how I break it down for my Candle Business:
10-20 Candles or Soaps = 5% Discount
20-50 Candles or Soaps = 10% Discount
50-100 Candles or Soaps = 15% Discount
100+ Candles or Soaps = 20% Discount
For me and my business, this is a more than fair offering. It pays me for the time it takes to make my unique products and it offers a break to customers if they choose my company, so - Win Win.
If you have any questions about pricing your products or about what to quote for a specific order I would be happy to help guide you in the early stages. You can always send me a message on here or @thebiggestwicks or @milliondollarmomblog on instagram.
Lots of Love,
Karleigh Jennifer
The Biggest Wick Candle Co. & Million Dollar Moms
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