The 5 Things Every Product Business Needs To Sell Wholesale
Have you every dreamed of your products being sold in stores? Wondered what it would feel like to walk into a local shop and see your products proudly displayed on the shelves? You spot it from a distance and then you run over to it, feeling like a beam of light is shining down upon it from the heavens above!
I’m telling you, friend… it’s a freakin’ MAGICAL feeling!!! But as magical as it feels, you can only sell your products wholesale if it makes sense. It can’t be a vanity metric. I REPEAT… SELLING WHOLESALE CANNOT BE A GOAL FOR YOUR OWN VANITY & EGO! It needs to make sense. A.k.a. you need to be able to be profitable. We’re all here to make an impact, for sure! But more importantly, we’re here to make money. With more money you can make MORE impact. Please remember that as you go through life & your entrepreneurial journey, ok? OK!
Using the tips below I was able to grow & scale the wholesale side of my product based business, Kitty Meow, from 7 stores to over 1,000+ stores sold in over 13 countries in under 3 years. Why do I start with 7 instead of 7 you ask??? Because for over a year I was spinning my wheels, trying so hard (on all the wrong things), spending tons of money, and only was able to get 7 wholesale orders. It wasn’t until I made some major shifts in my wholesale strategy AND MINDSET that business took off for me. And I want that for you too!
First things first… Let’s go over some basic wholesale lingo.
What is Wholesale?
When you sell your products for 50% off your retail price - with the intention of them being resold.
Retail Price: What you sell your products for at Full Price (i.e. your website, Etsy shop, markets, etc.)
Wholesale Price: 50% off your Retail Price (depending on your product this percentage can vary, but 50% off your retail price is a pretty standard rule of thumb)
MOQ: Minimum Order Quantity - # Set per item
OOM: Opening Order Minimum - Minimum amount they MUST spend on their FIRST order
Reorder Minimum: Minimum amount they must spend on any reorder - always less than their opening order minimum.
Now that we’ve got that covered let’s get down to business!
1. You need to make sure your profit margins actually work for Wholesale
Ok, real talk - this one is so important, the most important! It’s incredibly important to sit down with a pen and paper and do some basic math - old school style. It’s a non-negotiable to add up all the costs for your product then subtract that from what you plan to sell the item for at full price. That’s your profit! Then calculate what your profit will be if you sell it wholesale. Is the juice worth the squeeze? Don’t get so excited about the idea of selling your products in stores that you skip this step and go straight to the more glamorous parts of running a business. Being PROFITABLE is the most glam part of running a business!
Ask yourself:
• Will I still be profitable selling this product at 50% off?
• Will I be able to sustain the life I want & deserve with THAT profit?
• Will I still be profitable when I factor in the additional 15%-25% off the wholesale price that Sales Reps or wholesale platforms like Faire or Hello Abound take as a commission?
*For each of your items you need to do your homework and do some market research.
2. You need to have a robust collection with a well put together Catalog
Make sure your Wholesale Catalog includes…
• A picture of yourself with a fun bio about you and the company. People want to know the PERSON behind the company.
• The product size, MOQ, wholesale price, and other pertinent info about that item ON the page the product is shown.
• Your contact info on EVERY PAGE to make it super easy for them to contact you if necessary.
• Show stopping photos. Mix of clean & styled
• Assign each product a Short Name & SKU and list these in the catalog next to the product image.
• Wholesale Terms. This is where you state your Opening Order Minimum, Reorder Minimum, Minimum Order Quantity per item, cost per item, turnaround time, and all the nitty gritty on returns, and how they can actually place the order.
3. You are willing to release new items on the regular & REALLY listen to customer feedback
Customers always want to know “What’s New!?” You need to give them a reason to be repeat customers but releasing new designs and styles on the regular. Plus it gives you a reason to constantly be reaching out via email.
Fun strategies I’ve implemented to get feedback & create excitement:
1. “One a Day” Design Blitz: Create one new design/product a day for a month, and engage with audience on their faves.
2. Survey for Wholesale Customers: Offer an incentive, prize giveaway, to complete survey. Use as Market Research
4. You get SERIOUS about your Marketing Strategy
Marketing on Instagram is not enough! You need to build a solid Lead List of possible retailers and start building a relationship with them either in person or via email. Don’t want for sales to come to you. Be proactive!
Then you need to actually SERVE your audience. Showing up constantly (or worse - barely) only to scream from the mountain tops “BUY MY SHITTTTT!!” is not an effective marketing strategy. Always make your marketing more about the customer and less about you. Once I started integrating that simple concept into my strategy my business drastically transformed!!
The biggest thing to focus on for your marketing strategy is to build your email list & actually email them regularly!
5. You’re willing to PUT YOURSELF OUT THERE!
Maybe not what you would think, but this one has been the biggest game changer for me personally. Is this a huge block for you too? Friend, I’m telling you if you can work past this you’re going to see your business grow & scale in beautiful ways you never imagined possible. So many doors will open to new opportunities and amazing people. JUST DO IT!
Honestly, it doesn’t always matter what you sell (unless what you’re selling is totally awful - let’s assume that’s not the case), but it’s about the RELATIONSHIPS you build with people. People will buy into you and your products if they believe in YOU. Stores want to fill their shelves with products from people they believe in and love - people they like, know, trust. If you aren’t giving potential customers the opportunity to get to know YOU then you won’t have a competitive edge in your business. There can be other products out there similar to yours, but there is only one YOU. No one can recreate the secret sauce that is YOU!!
Not only do you need to put a face to your products, but you also need to show up with a servant’s heart full of gratitude. That sounds cheesy, but it’s incredibly true. If you let your people know how much you love, value, & appreciate their business they’ll come back for more!
If you’re ready to create a confident, personality filled brand while building your revenue through wholesale & memorable client experience, then click here and let's work together to grow your wholesale strategy in ways you never imagined! Doors for the KMB 8 Week Wholesale Intensive are officially open to start in January 2023 and don’t open back up until July.
Follow along with ME, Kitty Meow on IG | Or you can find Kitty Meow on TikTok | Interested in awesome IN PERSON events? Join me at Ultimate Product Party!