For artists and collectors sponsored by Intercal...your mohair supplier and Johnna's Mohair Store
Hi ......I have been approached by a shop that's interested in my traditional bears, they have emailed to ask what price I would sell to them for. I'm not sure what to reply as I've only sold through ebay up to now and I know a lot of retail outlets need to mark up the price. A few years ago this was about 100% mark up.
So do I sell the bears for less to a shop or stick with the internet selling only and try for the price I want?
I don't really want to end up making lots for a low cost......anyone any thoughts?
Confused!.... hugs Lynne
Shops are always a difficult decision Lynne. I would say, if you are building a solid collector base, then it may well be worth concentrating on developing it further through direct selling. However, if you would like to extend into shops, you will need to think about what the shop has to offer you in terms of reaching a broader market than you can achieve for yourself. Shops should work hard to promote their artists ... there's nothing worse than selling a decent bear to a shop only to have it shoved at the back of a shelf and left to gather dust. A good shop will promote you as an artist and will be seen to endorse your work. Ask if they take ads in magazines, have special 'artist' days for collectors ... that kind of thing.
Pricing for shops is tricky. If you do decide to go ahead, I would stick with a materials + labour method of pricing. It's unlikely you will achieve much of a profit margin on trade sales (which is why they need to offer you something you can't achieve for yourself in terms of promotion) but it is important that you do at least cover your costs and earn something for your work: or what's the point?!
I usually find the trade discount works one of two ways, it either forces you to re-evaluate your retail pricing to accommodate the discount and arrive at a base line figure you are able to work feasibly with (which invariably results in you discovering that to offer that discount you need to sell direct at higher retail prices) or it forces you to undersell your work. Neither of which is very fair either to your collectors, or to yourself!
Whatever you decide in terms of pricing, selling to shops needs to be carefully thought out before you enter into an arrangement. Once you've worked out what you need, stick to it and don't be 'talked round'. If it doesn't work financially for you, you will end up resenting the arrangement and that may even spoil your pleasure in making and selling bears. The kind of practical arrangement you might like to consider for example, is a minimum order value before you offer a trade discount ... something like a minimum purchase of 3 bears per order shouldn't be beyond the realms of possibility.
Don't forget to consider postage when dealing with shops either. If the shop is worth their salt, they won't quibble over paying the cost of postage and they won't expect it to be included in the bears' pricing.
On a personal note, I've worked with various shops over the years and some have been much better than others; however, if I'm honest, I have usually been dissatisfied with the pricing situation ... I never seem to have made enough to have really made it worth my while creating the bears to sell for trade and I can usually sell them much faster from my website, Ebay or through shows. I also cringe at some of the high prices which have been charged for my work in shops in the past - the shop has overheads of course, so there is a constant discrepancy between what an artist needs to make to cover costs and what a shop needs to charge to cover overheads. There never seems to be a perfect solution and if I'm being frank, I find the compromise tends to be mainly on the artist's part.
It really has been hard work to build consistent direct sales, but all in all, I much prefer to sell direct to my collectors and I find it far more satisfying both financially and in terms of the immediate connection I have been fortunate enough to achieve with the people who prefer to buy directly from me.
Hi Lynne,
I sell mine through a shop. We talked and she asked me what I wanted for the bears and she put a price on them that I agreed. My lady pays up front for my bears , then really its up to her, what she makes. The understanding was that she didn't put too much on because I want them to sell, and she had asked me not to approach anyone else in the town ( which I'm quite happy with).
I'd ask to speak with the person, if you are not happy don't do it.
Hope that helps you a little.
Love kayx.
Thank you Paula and Kay...that's such a lot of good information. I think I know in my heart that I should have faith and keep selling them myself....but I do keep wavering either way!
Hugs Lynne :hug:
I do like selling through shops.. unfortunately the few shops that have stocked my bears over the years have closed. But it still gave me great new collectors.. and made me able to get my bears out to people who might never have seen them otherwise. Pricing is always an issue as the shop has to be able to make money.. usually 20-50% depending on the type of shop. They have rent and employees to pay and you have to factor that in to.. Most shops are very good at promoting your work. The shop keepers will tell collectors all about you and get your name out there. Just make sure they pay for the bears up-front. I have done consignments and unless you can go and check on them every few days, it's not a good idea... and getting the money for bears after they are sold can sometimes be a pain.... never mind when one goes "missing" lol.
You kind of have to factor that you will not make as much off the bears when you are selling to a shop... but then they do all the "work" of selling. Just depends what you are willing to make off your work. It is never easy!
Bear Hugs!
Melanie
WONDERFUL ADVICE, Paula!!
I can't say as I've found selling through shops to be the greatest experience in the world. The majority of artists who can sell their bears independently through shows, website, etc. find selling to shops to be a financial loss and not worth it.
It's a great option for those just starting out or for those who don't have a website or travel to shows.
I do think selling through shops can be a valuable part of your overall selling strategy. As Paula has said, a good shop will promote their artists and encourage collectors through the door with special events, personal service, etc. I have had good and bad experiences over the years and the number of shops I supply now has drastically reduced in the past few years - partly by choice, and partly because so many have closed down. I suspect that the shops which folded were the ones marking up bears too high and not doing enough to really sell their artist bears.
Nowadays I only sell through a couple of shops, but we have good working relationships and I know that they are reaching parts of the market I can't reach alone. It has also brought me a number of new collectors who are happy to buy direct from me as well as through the shops I supply. This is because the shops are not greedy with their markup, so their prices end up only a little higher than my own, and because I learned to price my bears so that I can do wholesale and still make enough money to live on.
If you are concerned about your pricing, try finding out what the shop will probably retail your bears for and then divide that figure in half - if you can live with that, then wholesaling might work for you. It's a rough and ready formula but will give you some idea of where your wholesale prices should be. This is NOT the same as giving a 50% discount off your own prices, by the way!! But a shop will likely have to double whatever your wholesale price is, so it is a way to gage whether your prices are too cheap/ too expensive, or spot on.
Christine