It's a numbers game. As the manufacturer you are the "low price
leader". When you get into retail, usually you're nicely priced as
you MADE IT. If a store buys it from you, they will about double it.
In most cases whatever you've been selling retail for will have to be
lower than what you've been selling for. Then the retailer marks it
This is the world.
But if it cost you $100 to make and sell it for $200 and you're
happy, fine. 5 sales a week will net you $500 in gross profit.
If you sell wholesale, you'll probably sell it for $150 and the
retailer will sell it for $300, lots more than you did. It just has
to be this way.
But run the numbers. At $50 profit per item rather than $100, you'll
have to MAKE and sell twice as many (10) to get your $500 profit for
Twice as many units, give or take twice the time (maybe 3/4) and for
sure you'll buy more supplies.
You might look at the numbers and say
"I can't sell for less than $175, I just can't"
Then that's just the way it is.
And you'd be smart on the retail end to raise your price higher than
$200 also, especially if your work will be in other galleries. You
don't want a Stephanie piece to be in one shop at $200 and another at
Try selling retail at a higher markup.
Let's look at the numbers. If you sell 5 pieces at $200, your gross
profit is $500.
If you sell the item for $300.00, selling 5 pieces grosses you
$1000, $500 more!!!!
But what if folks won't pay (they probably will), but again if you
NEEDED to gross $500 for the week, you'd only have to SELL 2.5 pieces
a week, not 5.
If you sold it for $275, you'd only have to sell 2.85 pieces a week.
So raising your prices means you'd only have to make and sell 3
pieces rather than 5.
More time at home and it would give you the leeway to wholesale.
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