Selling Wholesale vs. Retail

[cmb]

I was thinking about this scenario: if you concentrate on selling retail through your site, does it in anyway affect your chances in securing wholesale accounts? I started to think about it this way, if I sell a candle for $4, for example at retail, and someone is considering my products for their boutique but has to sell them for $5 (example) to keep within their costs - how do you handle that when a wholesaler approaches you?

Thanks,

Marie

[RobinInOR]

It usually evens out since your retail website will also include shipping $ and time. The boutique will be less $ in total and instant gratification.

[doris]

I don't sell wholesale, or ever want to, but website sales shouldn't have any impact on boutique sales because shipping would have to be added to any web sale. If your site is selling a candle for $4, it is unlikely that anyone could get it shipped anywhere for a dollar, therefore the boutique candle would still be a better deal. However, many stores have issues with their wholesalers selling a product at a much lower price than they themselves can. If you are in the same area as one of your wholesale accounts, make a point of selling at their price. It would only be fair.

[SherriLynn]

Those who wholesale from me, resell at all different prices. It depends on what their market can tolerate in their area.

I retail one of my candles for $8.50 each,, I wholesale it for $4.30. One of my clients is able to retail for $10.95 in their store and does very well at that price , however it is a high tourist area.

[cmb]

But, do you think if I am pursuing crossing over to a total wholesale based market, would the fact that I may also offer retail on my site have a negative impact on getting those wholesale accounts?

[SherriLynn]

My website is set up totally retail priced,however, I do wholesale as well. Those who are interested in carrying my products contact me for wholesale rates via email, or stop by my booth at local shows for pricing.

I keep a monthly list on my website that shows what shows I'm working that month. Many store/boutique owners who surf and find my website, will actually visit me in my booth, watch customer reactions etc, before inquiring about wholesale. They sample my products as well so they know what they're buying.

I think my retail website has been key to getting my wholesale accounts.

HTH's *S*

[candlelady]

Hi!

I've been selling retail and wholesale from my website for 6 years now. I live approx. 13 - 15 miles from 3 towns (I'm kinda in the middle of them all) and they all carry my candles in their stores. Their prices are the same as or slightly higher than mine and I deliver to each of these stores. My other retailers outside of my area or out of state, price the candles way higher than mine and it works out just fine. Their customers keep going back to them to buy my candles and not to my website.

HTH

Carrie

[cmb]

Thank you for everyone's input. I appreciate it!

Marie

[hometowncandles]

This is similar to what I have been trying to explain to dh.

I got a call from a local florist today that wants to start selling my candles at her shop. Naturally, I was excited so I just had to tell dh as soon as he came in from work today. His first reaction is, you can't give them to her for any less than you sell them for.

The part I can't make him understand is that people aren't going to buy my candles from her for $20 if they can buy them from me for $15. Besides, it would save me so much time and money in gas, eating out everytime I go to town, and so on, if I just had some where for people to buy my candles. It would be worth it to do a wholesale account with her, provided she is interested in more than 5 or 6 at a time.

I am going to do some searching on the board before I quote her any terms or prices. This place is a wealth of info.

[sockmonkey]

If a retailer approaches you for wholesale policies but doesn't like that you have an online store, explain the advantage they have over your online business--their customers can smell the product in person before they buy it.

There is not a limit on what they can charge for the candles they buy from you. You may charge them $2.50 each, but it doesn't mean they can only get $5 for them. They can charge $10 or $12, depending on what their particular market will bear as well as their salesmanship.

Another positive is the ability they will have to promote your candles as locally made (assuming you're not going after out of state accounts). Shoppers love to buy quality products made in their home state. Most gift shops will be filled with items imported from China that can be found in every other gift store.

Yet another possibility is that your website can actually enhance their sales. Customers can see what the latest fragrances are by visiting your site. The gift shop will be catering to the locals. Your website can potentially cater to anyone across the globe, so you're not really going after the same customers.