Wholesale Jewelry Gifts Blog

There comes a time when every handmade jewelry artisan wonders if selling their jewelry wholesale is the better decision for the business. It actually depends on a number of factors but generally boils down to time and money.

Wholesale Horse Jewelry Handmade Earrings

While wholesaling your jewelry will bring in larger orders the major question is can you actually make handcrafted jewelry fast enough to make a profit? Anyone who is thinking about jumping into the wholesale jewelry market needs to be able to create production pieces quickly, efficiently and at a reasonable price. There are not too many stores who buy into one-of-a-kind pieces. Gift stores are generally looking for low and mid-range priced jewelry to offer to their customers. They want to sell through fast and re-order the best selling designs. Very few shops are going to order not knowing exactly what they are getting. You need to have unique jewelry that sells well in a great selection of popular designs.

After selling retail for a few years you will have an established line of great jewelry designs but you might be getting tired of always being on road going to art and craft shows every weekend or you might want to just make more money. Wholesaling brings larger orders but the profit margin is less for each piece. Usually the wholesale price is your cost plus your time times two. If you normally retail a pair of handmade earrings at $20.00, the wholesale price is half so $10.00; therefore the cost and time should be under $5.00 for you to make a profit. You need to consider carefully your pricing structure. If you sell too low it is not profitable but if you set the price too high the stores will not be able to move them fast enough and will not re-order.

Wholesale business is good only when you have re-orders because that is where you make more profit. Trade shows are expensive and there are times when you do not even make the expenses, but if you get two or three good customers who re-order then you are making money. For an example, there was a lady who placed an order at a show for $400.00. After the show she called and cut the order in half because she spent too much at the show. We were disappointed to say the least. We almost did not send the order. That lady in the following three months placed over $10,000.00 in re-orders. You just never know how things are going to turn out, that lady has been our very good customer for many years.

Larger orders are great but they take more time to make. You need to be working constantly when you have a wholesale handcrafted jewelry business and it can be very tiring. Quite a few companies, like catalogs, have specific deadlines that you have to meet or the order is cancelled. When placed under that much stress sometimes the quality standards get a little relaxed to get everything done on time. You are shooting yourself in the foot. Do not ever send second rate products. If you cannot meet the deadline call the buyer and ask for more time or to send a partial order and the rest as quickly as possible. When we were just starting out we got an order from a department store but we rushed and sent the order anyway. We never heard from them again. We always regret that decision.

Everyone at one point or another wants more from their business but you need to consider many factors in able to choose the right path for you and your handmade jewelry business. Both retail sales and wholesale trade have their advantages. You need to consider the pros and cons of both before you can decide properly.