Wholesale vs Retail Profitability - There is a wide range of potential for both wholesale and retail and, as we discussed earlier, much of that will depend on your product’s labor costs, material costs and the overhead involved in reaching your buyers. While retail will give you the opportunity to charge more per item, that figure can come down dramatically if the cost of reaching your potential buyer is high.
Making the right decision requires doing the math and a little first-hand experience to know which is a fit for you and your product. For example, a craft show may bring in $2,500 in a weekend, but if it's costing you more than half that amount to secure a booth, pay for travel, plus the cost of your materials, then you might want to ask yourself if making calls and sending out line sheets to stores will net you higher profits.
Even though your price points are half of your retail prices, you may not be seeing a higher profit from selling your wares at retail if your exhibition overhead is high and your sales are not adequate. While wholesale price points are much lower, you may find that the potential for receiving large orders can be very motivating. It doesn’t take long to build a solid income when you’re bringing in orders that are upwards of a $1000 each.
Making a choice between wholesale vs retail is a very personal decision that is everything to do with both your product and your personality. You may well find that you enjoy the best of both worlds with a large portion of your sales coming from wholesale orders and a few craft shows thrown into the mix. The craft show option, when available again, will also help fuel your online traffic and you may get the occasional store order to boot!
Return from Wholesale vs Retail to Selling Handmade Jewelry to Stores