How to Wholesale Supplies and Increase Profits

You might think wholesaling is just for “the big guys” or for retail stores. News flash: it’s also just for you. As a professional crafter, there are several reasons you’ll want to get set up for wholesale accounts with vendors:

• You get waaaay discounted pricing (usually around half-off retail)
• You get bulk discounts if you order a lot of supplies at once
• You can oftentimes get samples, color charts, etc. mailed to you at no cost
• You can get many supplies from one vendor–without having to run all around town or search dozens of websiteshttp://indie-made.com/sites/default/files
• Ultimately…you make more profit per crafted item!

Wholesale and save!

It’s relatively easy to get set up with wholesale accounts. The main thing you will need is a resale ID–which is the same as your local sales tax ID. And if you already have that, you should already have a legally registered business. That really is all you need.

Next is the hardest part–finding the suppliers. I’ve found through my years of crafting that craft supplies vendors sometimes aren’t the most web-savvy. Their websites can be hard to find and navigate. So when you find a good one, by all means, bookmark the site! I use GMarks (a Google product/Firefox add-on) and categorize my hundreds of wholesalers by types of supplies or products (e.g., handbag supplies, webbing, fabric, batting, etc.). To get you started, check out the INDIE-MADE Resources directory.

Once you’ve found your potentially wholesale vendors, try to find a link on their page for “wholesale” (or something to that effect). If you can’t find it, don’t fear. Simply find their contact information, call or email them, and ask about their requirements to set up a wholesale account. They will probably send you a form to fill out and ask for your business information. They might also require a minimum starting order. If you aren’t financially prepared to purchase their minimum amount, consider teaming with another crafter or two to share the supplies. Please note though that many wholesalers DO NOT require a minimum order, so don’t get too stressed about this.

Also, do not worry about the wholesaler’s credit terms. In the beginning, you will probably just want to pay for your supplies up front using a business credit card that you’ve set aside just for your business purposes. Make sure to keep all of your receipts for supplies–they’re considered business expenses and are therefore completely deductible!

After you have your main wholesalers set up, request samples and determine which products you need to purchase. Then, start buying! It really is that simple. There are only a couple things to look out for:

• Lead times–some wholesalers take much longer to deliver your orders than others. Ask your representative how long it should take to receive what you’ve ordered. There’s nothing worse than having a huge craft show and not having the supplies to create your products.
• If you’re concerned that a color might not match your existing supplies (or artistic vision), order samples up front. Most wholesalers are happy to send you these, or they can direct you to a retail location where you can see the products.

Last but not least, be sure to keep good records of all your wholesale activities. I hate losing wholesale account login info, contact information or the name of a wholesaler. Keep a neatly organized paper file, a spreadsheet or a Google doc to manage all the info.

Tagged as: supplies, wholesale