[buffettnh]

Direct Retail vs Wholesale... which would you pick for your growing niche brand?

As my 1.5 year old online brand grows, I am faced with a bit of a decision. I am hoping someone here has run into my situation and can give some feedback. Basically, should I push wholesale to other retail stores?

I do not think I can link to my site from the forum, but I can tell you the brand is for physical goods related to the tropical lifestyle industry.

As of right now I am 99% retail to the end consumer. Most of my sales come from my experience generating good SEO, Facebook marketing, internet marketing.

But the thoughts of getting my product into retail stores is extremely tempting. As it stand right now I have a few stores with some key product that do well.

The problem comes down to time, effort, and financial resources. Realisticaly I only have room for one channel to focus on. Since retail is in place and growing, part of me things it would be crazy to deviate from the current path. Wholesale is like a whole new business venture to me.

I would love to hear some input on this with those that have been in my shoes before.

thanks!
Jason

 

[buffettnh]

No one? Thought this would have been a good topic.

 

[20vK]

Re: Direct Retail vs Wholesale... which would you pick for your growing niche brand?

You are thinking about stopping a successful revenue stream? Maybe that is why you have not had any replies!

If you're concerned about finances, wait another year. Don't stop a successful revenue stream in the hope of getting a bigger one.

 

[buffettnh]

Re: Direct Retail vs Wholesale... which would you pick for your growing niche brand?

You are thinking about stopping a successful revenue stream? Maybe that is why you have not had any replies!

If you're concerned about finances, wait another year. Don't stop a successful revenue stream in the hope of getting a bigger one.

Stopping? Hell no.
Adding, yes.

But to me this seems like I am stretching myself. Needing the voice of experience.

 

[charles95405]

You can add your website in your signature

 

[buffettnh]

You can add your website in your signature

Excellent. Thanks!

 

[royster13]

Re: Direct Retail vs Wholesale... which would you pick for your growing niche brand?

As my 1.5 year old online brand grows, I am faced with a bit of a decision. I am hoping someone here has run into my situation and can give some feedback. Basically, should I push wholesale to other retail stores?

I do not think I can link to my site from the forum, but I can tell you the brand is for physical goods related to the tropical lifestyle industry.

As of right now I am 99% retail to the end consumer. Most of my sales come from my experience generating good SEO, Facebook marketing, internet marketing.

But the thoughts of getting my product into retail stores is extremely tempting. As it stand right now I have a few stores with some key product that do well.

The problem comes down to time, effort, and financial resources. Realisticaly I only have room for one channel to focus on. Since retail is in place and growing, part of me things it would be crazy to deviate from the current path. Wholesale is like a whole new business venture to me.

I would love to hear some input on this with those that have been in my shoes before.

thanks!
Jason

You can put your www in your signature......

 

[TLK]

Firstly, I'm not sure how it works in the US, I'm from the UK. I presume it's similar? I was in a similar situation a few years ago.

If you're selling a tee for $18 on your site, is that your RRP?

Most retail stores will want to mark-up 100% (some a little more, some a little less) on anything they sell to cover all their overheads. That means you'll be selling to them for about $9 a pop? Price may increase or decrease depending on quantity.

Most retail shops in the UK buy 6 months in advance on stock. You can ask for 50% payment upfront and 50% on delivery. Obviously then you print to order.

You didn't say if you're printing yourself or if you use a screen printer. Either way you'll want to work out how much you can make from each item selling at that wholesale price.

I don't know the kind of stores you're targeting and what quantities of your products they're likely to sell.

Roughly (I don't know any of your costings etc.)

If you sell 100 tees on your website and make $15 profit on each, that's $1500

If you sell 1000 tees to a retail store and make $4.50 on each, that's $4500

It's either a large slice of a small pie, or a small slice of a large pie, if that makes sense?

So, it depends entirely on quantities you're expecting to sell wholesale.

From what I can see looking at your website, it's kind of a niche market you're selling to. You're probably marketing your brand to a certain customer through Facebook, SEO for the site etc. Are there enough retail stores that you can persuade to sell your products in those quantities to make you a decent living? If yes then go for it, if not keep doing what you're doing.

That's my advice...

 

[buffettnh]

Firstly, I'm not sure how it works in the US, I'm from the UK. I presume it's similar? I was in a similar situation a few years ago.

If you're selling a tee for $18 on your site, is that your RRP?

Most retail stores will want to mark-up 100% (some a little more, some a little less) on anything they sell to cover all their overheads. That means you'll be selling to them for about $9 a pop? Price may increase or decrease depending on quantity.

Most retail shops in the UK buy 6 months in advance on stock. You can ask for 50% payment upfront and 50% on delivery. Obviously then you print to order.

You didn't say if you're printing yourself or if you use a screen printer. Either way you'll want to work out how much you can make from each item selling at that wholesale price.

I don't know the kind of stores you're targeting and what quantities of your products they're likely to sell.

Roughly (I don't know any of your costings etc.)

If you sell 100 tees on your website and make $15 profit on each, that's $1500

If you sell 1000 tees to a retail store and make $4.50 on each, that's $4500

It's either a large slice of a small pie, or a small slice of a large pie, if that makes sense?

So, it depends entirely on quantities you're expecting to sell wholesale.

From what I can see looking at your website, it's kind of a niche market you're selling to. You're probably marketing your brand to a certain customer through Facebook, SEO for the site etc. Are there enough retail stores that you can persuade to sell your products in those quantities to make you a decent living? If yes then go for it, if not keep doing what you're doing.

That's my advice...

TLK

$18 is what I sell it for. Sure, I could wholesale product for about 1/2 that and still make a few $$. I do 95% of the work in house.

The targets are beach stores. Small to mid sized independent stores.

Perhaps the issue stems from my lack of experience in selling wholesale to other retailers. I have always worked with the the end consumer and enjoy that.

To me it makes sense to do what ever brings in the $$$. But I am not about to effort something with little experience on my end without getting a lot more feedback.

thanks!