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  • Wholesale

    I've been contacted by a delicatessen wanting to know my wholesale prices and T&C's etc - help!

    I've only sold at fairs and over the internet so far!

    I was thinking of offering a box of 36 mixed jars (that's a full box) for £99 plus £15 delivery. That works out at £2.75 a jar (and the delivery is Royal Mail Parcel48). They can then pick the flavours they want (e.g the more unusual ones) and then price them up accordingly (up to £3.50 a jar).

    How does that sound?!?

  • #2
    Remember wholesaler buyers will be expecting to put at least 100% profit if not more, so at £2.75 per jar they would charge £5.50, if you state a cost of £3.50 rrp per jar they would expect to pay £1.75 per jar from you, plus apart from maybe the first order would expect 30 days credit


    • #3
      Have you ever seen the prices of jams etc at deli's? Around here you'd expect to about £5 a jar so your wholesale price might not be that far off if they intended to sell at that kind of price.

      Originally posted by Caroleecrafts View Post
      apart from maybe the first order would expect 30 days credit
      I'd stand firm on this and say that as you're a small business you do not offer credit, I think it's a risk you can't afford to take in the current climate (too many businesses are going under and you don't want them to go owing you money). I've noticed it's becoming more common for credit not to be offered/expected lately.
      Visit Natty Netty for a huge selection of Iris Folding supplies


      • #4
        I agree Netty handmade jams around here go for £5.50 upwards for a jar, not to be confused with the supermarket ones, so aim high. Read Dixies blog for further inspiration: Handmade Lives

        I recently got asked to supply a local shop on sor for 50% reduction yeah right they could think again and they even took pride in telling me a lot of their crafters did it as a labour of love not to make money, I did reply that more fool them, lol and how did they allow for overheads, tax etc. Went very quiet so in other words half of the crafters are not a registered business.
        Last edited by Caroleecrafts; 07-01-2013, 09:54 AM.


        • #5
          Thanks! Will have to have a think about this, as at £1.75 per jar, on some flavours I'm quite a bit out of pocket. Maybe at £2 per jar with an RRP of £3.75 - £4.50??


          • #6
            The Anna me occassionally dabbles in buying at wholesale prices. Some wholesale deals go spend over £100, £150, £200 before you get a 5,10,15 percentage discount. They are usually the folk with a big wharehouse and don't want timewasters for customers.
            Others, smaller ventures, give a nicer deal. So buy £10 and save 50p on each item, buy 50 and save 75p, buy £100 and save £1. (The numbers are for illustrasion only - it's more like save 5p, save 6p, save 7p - I exagerate but you get the idea?)
            As a retailer/seller/market person I do try to double the price I bought the thing at. (It makes sense when you do the sums.) When I do the caculation it's the cost of the item plus it's share of the postage times two.
            So that would make your jam over £5.50.
            But ---- a jeweller sells one or two items a day and a supermarket thousands. I was told a jeweller marks up by 400% and a supermarket by one and a half percent (This was 30 years ago - I had relations in the trade - is it still like that?)

            So how many pots would you sell at a fair? You wholesaler has saved you the pitch fee, the petrol and a day's work selling (dunno about you but I still manage to work a whole day when I do a 3 hour fair ).
            That selling sum should be embedded in the price you sell your jams at and you should be able to extract it and still leave the maker part of you a profit. If the wholesaler/your delicatessen can sell on your jams at the same price as you do, you've cracked it. Don't cry, it hardly ever happens in a crafter's real life.

            Annie says - I make things costing 50p and discount if folk buy in 100s. It works and my customers come back for more. I also buy from a potter. £2 things. I spend £100+ and get a third off.

            But here's a wheelie dealie thought. Anna goes by the book with the doubling thing and struggles and Annie does the add a third and is on a roll. What's that about then?


            • #7
              Ah...pricing. Hardest thing of all.
              You can adhere to costings, formulae and stuff like that or you can price to sell (usually that is a cheaper price)
              bearing in mind that turnover is vanity while profit is sanity, there is no point in sitting smugly on a pile of expensive and unsold stock.
              (I certainly don't mark up by 400%!)


              • #8
                I would do more research and then stand by your prices (but be realistic at the same time).

                Compare prices in upmarket farmers shops & delis (similar items to yours in terms of size, packaging etc). Make sure that if you are still suggesting the shop to sell for around £5 your packaging is upmarket and well presented.

                Anna is right about other costs to consider with wholesale. You would usually work to order, which means you can focus on just what you need to produce and not waste time in guessing how many jars you need for next fair. That saves time (and money).

                The only way to reduce cost of item is to make it quicker - all other cost usually stays the same (providing that you are already buying in bulk & wholesale and getting the best price for ingredients). This often is a stumbling block for small producers, because you need more equipment, large premisses etc.

                Love to know, how you get on - hope it goes well.
                Passionate about all things handmade...

                Proud owner of WowThankYou - stylish and affordable way of selling your crafts and makes

                Friendly advice and coaching for small businesses

                Cocoa & Heart Website


                • #9
                  Thanks again! I would usually sell between 50 - 70 jars at a fair. I know that I could up my prices a little at fairs (to £3 a jar). I've seen similar products for both the same price/size as mine, and also for up to £4 a jar - dependent on the brand/manufacturer. I'm going to drop the delicatessen an email, and see how it's received. If they don't want to stock my products, that's fine - I'll continue to sell at fairs and over the internet


                  • #10
                    Sounds like your pricing is spot on to sell at fairs. Although if you are under £3 I would try taking it up to that. it's a nice round amount which doesn't sound too heavy. I would certainly pay £3 for personally made jams.
                    While comparing prices with other people's lines in shops is sensible, if those £5 jars aren't selling then it's not such a good comparison. I would think that for a fiver a jar of jam would have to have something special about it, though I've no idea what.