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Selling to Retail Shops - Mark Up??

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  • Selling to Retail Shops - Mark Up??

    Does anyone know what the common mark up is for handmade greetings cards when selling to independent card and gift shops. If they bought a card from me for £1, what would they sell that for?

    I am going to approach a couple of local shops to show them some samples and just wondered about my pricing, I have obviously done a costing on the card and it's working at approx 40p - 50p to make including envelope, bag and label. Just wondering what I should be selling for to make it attractive price for the shop.

    I am not keen on sale or return, I have read posts on here and it just seems more hassle than it's worth. Has anybody successfully sold cards into independent shops?

    Thanks!

  • #2
    Geift/craft shops generally double up i.e. they work on 50% profit on goods in order to cover overheads and pay themselves and/or any staff so they'd sell your £1 cards for £2.

    A couple of workshops for LD adults which I set up before I retired have been making a good income from selling to local shops - they charge 2.5 the cost of materials (no labour costs as different people work at different rates varying from extremely slow to as fast as you or I) - but they cut and crease the card bases from SRA2 sheets and there's one client who threads up beaded wire sprays and another who's a whiz with a scalpel and decoupage. They also have a large Ellison diecut machine and lots of dies which I managed to get from "slippage" funds.

    The cards are not marketed as "made by disabled" and are as professional looking as any others (if they're not they don't passout of the workshop).
    ElaineJ soap and other stuff
    website
    blog

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    • #3
      Most shops I have approached are 50%. So they bascially sell for double the price they pay you. That said it's always worth having a discussion with them. If you have an idea of how much you would like them to sell your cards for you could suggest it to them. I've had ranges from 30% to 60%.

      I also work part time in a shop and they always charge 2.5 times the price they pay excluding VAT. This means that if they buy cards for £1.75 they can be charging over £4 for them and that probably means they don't sell as many of them as the makers would like....

      Just a thought I don't know how long it takes you to make a card but if you are only charging 50p for your time you are maybe selling yourself a little short?

      That said that's what I charge quite often....I suspect crafts is not the way to make millions...

      I'll stop rambling now good luck with the negotiations!

      portfolio: www.suzielda.co.uk

      buy online: www.mooart.com

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      • #4
        Thanks for replies, this confirms my initial thoughts that if I sell for around the £1 - £1.50 mark shop they could be retailing my cards at around £2 - £3 which seems about right.

        Thanks!

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        • #5
          Diane

          In the past I have sold my cards to the shops for £2, and they have sold them for £3.99.
          Im only making £1 profit and thats only the cost of the materials.
          The shops that I have approached recently are wanting a bigger mark up but no way am I doing it for less!
          I f I go to a craft show, I ask £2.50 , I would like to charge more but I find the competition are charging less or the same.
          I think some people are just doing it for a hobby not like some of us who are running it as a business
          The credit crunch is certainly hitting sales and it is soul destroying going to shows and not having many sales!

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          • #6
            Mark Up

            I do sell cards that cost me £1.00 for £1.50 in my shop if they are made by my customers, however if I bought them from a wholesaler for £1.00 I would charge £1.99. Please bear in mind that many shops are struggling, overheads are very high and trade is down, if you made a profit at all you are doing well.
            Chris W.
            x
            Gemstone Jewellery and Gifts

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            • #7
              Hi..while I agree with everything that has been said. I dont make cards. but when I buy handmade cards I dont mind paying a little more than for a mass produced card because I can appreciate the effort gone into making them and because most of the time the designs are far superior to other cards. The price of some shop cards is too much and I wont pay it.

              ramble over. sorry
              Handmade jewellery, to buy gifts or just to treat yourself visit my website, commissions welcome or join me on facebook for a chat

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