Stores don’t do things for free and they rarely buy outright from us craftspeople. But when they do buy from us “wholesale”, they would then double or triple the price they paid to you. The more common option is they take a commission (usually 30% for most places I’ve dealt with) on each item *when it sells* you place in the store.

If they sell a $100 necklace of mine, since 30% (or 1/3, approximately) of $100 is $30, then I would get $70 for that item *when it is sold*.

Conversely, for me to price my items for sale in stores, I have to add 50% to the price of whatever I’ve calculated my item costs. If I have a necklace that I cost out to be $50 (materials + labour + profit using whatever pricing method you like to use), and 50% of $50 is $25, then the price of an item going to a store is $50 + $25 = $75. When they sell that item, 30% of $75 is $22.50, so I will get $75 – $22.50 = $52.50. Means I get a little bonus.

Remember, even though a 30% commission sounds like a lot of money, they are open five, six, seven days a week, 8 or more hours a day, they pay their rent and overhead, pay staff, pay for advertising, etc. Doing a craft show once in a while or a weekly farmer’s market for five hours each Saturday morning, I can’t hope to approach reaching the potential audience of a store or gallery shop.

If you sell your jewellery yourself at shows/markets AND put those same items in stores, you must keep your prices the same.

Barbara

Also, Sandi – I felt exactly the same way about working up my nerve to talk to shop owners. You may find these JMJ posts answer a lot of your questions:

Here’s my story of getting up my nerve to contact my first shop about my jewelry: Stepping Out of Your Comfort Zone.

Also the Jewelry Consignment Checklist is a pretty complete how-to, with helpful links.

Best of luck to you! 🙂

Last Tuesday, I put things into a local store and everything unfolded precisely as Beth wrote. I had been told of this particular store a few days earlier by another supplier (pottery) to that store and was told to use her name. That afternoon, I dropped in to inquire about showing my work and made an appointment for early in the week when she was less busy, but I did bring a couple of items with me to give her an idea of what I did. We discussed her typical client demographic and what price range normally sells well. Like Beth recommended, I showed her the way I differentiate my work from most others, the workmanship, quality of materials, my design philosophy, etc. I gave her my business card so in the meantime she could have a look at typical examples of my work.

Last Tuesday I brought in about a dozen necklaces and bracelets and I provided a small display rack for 15 or 20 pairs of earrings. Everything was priced and I emailed her the product spreadsheet. My prices already reflect a 30% commission rate, which is standard in this area. That way I’m not cannibalising store sales. I also have a policy that if a customer at the store likes something but wants to see more or has a special request and comes to see me at the market, as long as I know that that sale in effect came from that store, then the store will get the 30% commission.

Since she gets busloads of Red Hat Ladies she said she would definitely be interested in more flamboyant and sparkly red and purple anything and that’s what I’m making now.

When I brought that first order in she mentioned that she was particularly interested in more earrings, so this past Saturday I brought in about 30 pairs of a line of simple semi-precious and Bali silver earrings that I make, mostly birthstone-oriented, but also some with Swarovski crystals — which she leapt on. I think I made my first sale! These earrings were on another rack — it makes it easier sometimes for the store owner if you can provide a display rack, but you need to discuss that with the owner. Every place is different.

I’m currently putting together a selection of turquoise jewellery to show another store in a primarily antiques destination village, and which will be higher end and more quirky/collectible jewellery versus fashion jewellery. I have a friend who is an antiques and collectibles picker for this particular store who had seen the jewellery that the owner carried and she mentioned that I make turquoise jewellery. Well, turquoise just happens to be a passion with this lady and she wants to see my work. This is a perfect case of I never ever would have gone into this store otherwise and would have been a missed opportunity, so let your friends and customers know that you are looking for new venues for your jewellery. If they buy jewellery, they’ll know where the good places are for yours.

Barbara

When you call, state simply and clearly what your intentions are and how it will benefit both you and the retailer. They’re used to people trying to sell them things they aren’t interested in, so be ready to explain why your product will be more appealing than the competition and what your target market is (it helps to do your research and be sure your target market matches their customer base). For example, if you’re marketing $50 earrings, don’t approach a $10 hairdresser. Conversely, don’t offer $5 earrings to someone who caters to high-price clientele.

When you arrive, be prepared. Don’t waste the time of the retailer as you search through your phone’s memory for pictures, fumble for something to write an order on, or dig through your purse for a business card. Be presentable and wear some of your own creations. Have a least a small selection they can purchase THAT DAY rather than planning to take a large order for delivery later. It’s fairly common for retailers to want to test market a new line before placing a significant order, so be ready with a dozen or so pieces in varied styles, possibly offered to the store at a slight discount.

When you get your order, discuss recommended pricing with the retailer. Most retailers want an assurance that customers can’t get a better price by ordering directly, and they may also want a buy-back guarantee if product doesn’t sell, especially if you ask them not to clearance your merchandise.

You are primarily selling YOU, not jewelry, at these types of interviews. Lots of people make jewelry, but most don’t have the ability to think from the retailer’s perspective… demonstrate this along with well designed and constructed pieces and a realistic pricing plan, and you’ll be far ahead of the game!