Getting your handmade items into shops or boutiques may be easier than you think, and you don’t have to go to the big gift shows to do it. But it does require some work. It means putting yourself out there, and that can be scary, especially if you’re shy. You need to prepare yourself for the wide world of selling wholesale and meeting with shopkeepers. And, you will need to do some homework so that you know what shops you want to sell to and who you need to talk to.
Let’s start with the basics. Where do you want to sell your crafts? Start compiling lists of locally owned stores in your area that are good matches for what you make. Investigate gift stores, art galleries that have small shops within them, and even bookstores or cafés in your town that may sell related items to their customers; you don’t have to confine your search to regular types of stores or boutiques.
Now that you have in mind some places to approach, take note of how close they are to one another; then rate the stores in the order in which you would most like to sell. The reason for that is most stores will not want to carry the same product as the store across the street or even down the road — in some cases a shop may even ask to be your exclusive retailer. Everybody wants their products or store to be unique, and the reason you shop at different stores even for the same kind of items like shoes is because different stores offer you different options.
It is important to be up front with the stores you’re selling to. Let them know where else you will be selling your wares locally.
If possible, visit the stores beforehand. Knowing who the target clientele of the store is can help you better pitch your items. (You’d likely have a hard time selling tea cozies in a funky boutique in a big college town, but those tea cozies might be a huge hit a few towns over with a popular teahouse where the locals hang out.)
When you’re researching, study up on the stores. Do they have a website where they feature what they sell? Do they have trunk shows? Do they sell similar products already? Make notes of these kinds of facts. It can help you narrow down your search.
Now that you know all about the stores you want to work with, get down to the business of persuading them to stock your handmade goodness.
I started out just showing up on stores’ doorsteps. I literally did a road trip all the way from Seattle to San Diego and back in a Zipcar to sell the trunk full of purses.
When you go a-callin’ on the shops, bring some of your marketing materials to leave behind. A shop owner may not want to write an order on the spot and may need some time to think about it. At the very least, you should be able to leave him with excellent photos of your work, a line sheet and a fact sheet, and your business card.
Before you leave on your account-day marathon, make sure you dress for success. Be your own best advertisement by wearing your own jewelry or handmade clothes. If you don’t make anything wearable, bring samples of your work with you. Nothing compares to being able to actually hold and handle something to see firsthand how it’s constructed and what it’s made of.
If you have a catalog or can make one, now would be a good time for you to employ it. However, if you’re a smaller business than that, a modified version of a press kit will do. The photos should be of the same items you are hoping to sell in the shop, and the line sheet should have all the technical information that the shop owner will need to decide if she wants to carry your product. The line sheet will also tell her what your order minimum is, what your wholesale costs are for each item, and your return policy. The fact sheet could have your biography and a bit about your business, maybe some interesting tidbits about what you make that the shop owner could share with her customers. Leave your card to put in a Rolodex. And as always, make sure that every bit of your contact information is on each piece of paper you leave behind.
A drop-in sales visit can be awkward, especially if the owner or the manager is in the store alone; he might not have time to sit and discuss your line. If while you’re browsing around town you happen on a shop that seems right for you, take the shop’s card, and call to speak with the owner when you get home.
Call ahead to make an appointment with the owner or manager at the shop you want to approach. You never want to drop in unannounced.
Be prepared: know everything about a store before you walk in. Beyond that, keep these points in mind:
Here is my best advice once you get your goods into a store: deliver your orders on time!
Shopkeepers and managers will want to know the basics up front: how much your items will cost them at wholesale, what kind of discounts (if any) you offer in quantity, where else you’re selling, and, most importantly, how well your products sell. You need to have clear, concise, and (hopefully) profitable answers to those questions, because if the owner or manager doesn’t think your items will be big sellers, she’s not going to devote floor space to something risky.
But this isn’t a one-way street. You don’t want to get your things into a store only to find out that it’s not a good match for you. Don’t be afraid to ask a lot of questions. How much room will be devoted to your product? Where will it be placed in the store? Do they carry anything that could be competition? Do they do a big mail-order or online business? How well is the store doing? They won’t sit down and show you their books, but finding out a general “Business is good!” or “We’re going to close in a month because business is so bad” are good things to know.
Use this important time with the owner or manager to really connect with him. Some of the most successful companies have traveling sales reps who visit the stores that carry their products personally because it creates the kind of face-to-face connection that builds relationships. When you’ve got a good working relationship with a store, it’ll be worth more than gold to you because they’ll be a lot more likely to order from you than from a competitor. They’ll also let you know what’s going on with other stores in the area. Plus, if you have a good rapport with a shopkeeper, you’ll be in a good position to respond to her needs quickly if some of your products aren’t selling well enough (which gives you a good opportunity to suggest other things you make that might sell better), or if she keeps selling out of other items.
Geographically, you will want to keep the stores that carry your items at least a few towns apart if you’re in a rural or suburban area, or limited to just a few locations in a major city. You might think that getting the most stores possible would be best, but then you’d run into a situation where your product has oversaturated the market. If someone walks into the first store and passes by your things, they’d most likely walk past them again in the next store as well. Not to mention, shop owners don’t want to carry something that their competition down the street also has. Instead, they’re going to want to carry a newer and more original product that would make their store stand out.
At Crafty Wonderland, we do not like when people randomly wander into our shop with a bag full of product — it can be awkward and distracts us from customers. We prefer prospective sellers to email us photos or a link to a website. If you don’t hear back within a week or two, don’t hesitate to send a follow-up email in case the initial one got lost in the shuffle.
One thing to discuss with the owner or manager is cross-promotion. An easy and free way to promote each other would be to have an area on your website that says, “Available at the following stores . . .” If this is your first store, you can say, “Available exclusively at XYZ Shop.” In turn, ask the owner or manager to state on his website that he carries your products.
Just like magazines, most store owners prepare for the holidays a long way out. (In fact, shopkeepers who visit New York City’s biannual International Gift Show in August are bombarded with the December holiday season merchandise and will most likely place orders with the holidays in mind.) Plan ahead and approach shop owners well in advance with your own holiday line. Let her know what you’ll have available, like holiday decor items or even fuzzy scarves that she may want to stock. This way you can make sure she has room in both her shop and her budget to work with you.
And what if those products don’t go over as well as you and the store owner had hoped? If a certain product, or even a whole line of products, isn’t selling in his store, a shopkeeper may ask to return the unsold items. This should not be taken as a personal reflection on you or your crafts. Keep in mind that the owner was impressed enough with your things that he wanted to carry them in the first place. If you have accounts at several stores, this will not be such a huge blow to you, but if this was your only retail outlet, it could definitely hurt. This is one reason why a good return policy is a must. If a shop buys from you outright, returns shouldn’t really be something you ever have to deal with. However, in today’s economy, stores may want an insurance policy before they take a chance on a new line. If you are willing to take the risk of having product returned to you, which means you would have to give money back, consider charging a restocking fee. Just make sure that you are clear about your policies when you begin your business relationships. This will help you avoid embarrassing confusion later on.
Selling your crafts at stores can sometimes be done by selling on consignment instead of wholesale. This simply means that a store will carry your goods, but rather than buying them from you outright, they take a percentage of the sale when your items sell. Assuming you can come to a mutual agreement of how much the percentage should be, this can benefit both the shop and you. A consignment split can be anywhere from 30/70 to 40/60 (which is the usual) to 50/50. (Be sure you know which number represents you when agreeing to splits.) Also, some stores will charge you a monthly fee to be in their shop. For the fee, I’ve heard everything from 1 percent of your monthly sales to $20. (One of the biggest drawbacks to selling on consignment is the inevitable effect of breakage, theft, or wear and tear on your products.)
So how does consignment work exactly? It’s pretty simple. You find a shop you want to work with, and then you simply hammer out the details.
Remember, a shopkeeper isn’t just pocketing all the money an item sells for. He needs to pay the overhead — rent, electric, water, Internet and phone bills, insurance, and credit card fees — out of every sale.
Here are some questions to ask before settling on a store:
Always check references for stores that you’re considering. I mean, don’t just ask the store or gallery owner to supply you with references, although you should do that, too. Check with other people who have worked with them. Do a thorough Internet search to make sure they are on the up-and-up and to see if they have had any reported problems working with crafters before. However, always ask the shopkeeper for his side of the story if you read something that causes you concern.
I have made a conscious choice not to sell wholesale because that would put the price of my toys out of the reach of most people.
A final note: A lot of crafters report being approached by brick-and-mortar stores who want to sell the crafters’ items on consignment. The buyers at these stores find items they want to sell via crafters’ websites, blogs, and online shops, so keep that possibility in mind when you are designing them.
Let people know you’re interested in wholesaling and able to do it. Make sure it includes your contact information and encourages shops to contact you.
If you have a website devoted to your business, you may want to have a section on the website that speaks directly to stores.
Let’s say you’ve done your legwork and lined up some shops to carry your goods. But although the shopkeepers want to order from you, they may not be able to pay right away. They may ask for “terms,” which means that they order from you, you fulfill the order, and you invoice them. Typical terms are 30 days or 60 days. Some people will only set up terms after a store has ordered and paid promptly a few times. Or you may require a store to order more than your standard amount if they want terms.
There are pros and cons to accepting terms. On one hand, you may not be able financially to let your work go without immediate payment. If that’s the case, explain that and see if you can work something else out. On the other hand, just because you accept a store’s offer and agree on when you’ll get paid, even if you send an invoice you may find yourself in the position of having to act as a bill collector if the store does not pay on time. You can ask the shop for references. Stores are used to having to supply references to larger vendors, so it shouldn’t be a problem. It is a way that they can prove their creditworthiness.
The pros to accepting terms could be anything from reducing the inventory you have on hand (freeing up room for you to make more product) to endearing yourself and your line to another small business owner, who will appreciate your cutting her a break, therefore creating a repeat buyer.
Whatever you decide to do, just be clear about your expectations and get everything in writing.