When you put “artisan” and the word “wholesale” together, they don’t seem to add up, right? It makes sense to have this view; after all, the whole idea of “wholesaler” and even the word “supplier” just makes you think of mass-produced items from a factory, right? Well, that is true, but technically, artisan work can be mass-produced. It’s a lot of hard work that takes a while, but it’s still technically mass-produced.
So, with that said, if you love the artisan work that you produce, but you’re just not a fan of the idea of having to deal with customers on a retail scale, then it’s entirely understandable that you’d rather jump out of the way from that and instead go for B2B. You still get to follow your passion, and B2B is usually less stressful, too. In general, one of the things you have to think about when starting a business is whether you want to deal with businesses or consumers, and you really need to be a people person if it’s with consumers.
But if you want to become a wholesaler and even a supplier to artisan-focused businesses, you need to keep in mind that it’s not a cakewalk. Even though there are plenty of blogs and social media posts out there praising Faire and similar companies as an artisan’s dream to make money, it’s not always as easy as just posting and selling. There are some considerations you really want to think about first. So, with that said, here are the essential considerations!
Pricing and Profit Margins
As you already know, pricing is a critical aspect of wholesaling since this is what directly impacts your profit margins and competitiveness in the market. Even if you’re hand-making everything, such as candles, it’s going to be your pricing that helps you stand out.
That’s why you need to determine your pricing strategy. You’ll usually need to base your decision on certain factors like production costs, market demand, competitor pricing, and even desired profit margins. Again, it’s all about balance; that’s key because you need to offer competitive prices, but you also need to attract buyers and ensure profitability for your business.
There’s the Aspect of Logistics and Fulfilment
It’s really going to depend on what works best for you, but if you’re doing this all alone (and that’s usually how it goes for artisan wholesalers), then you’ll need to think about how much you can do within your work day. You’ll have to develop a streamlined system for processing orders, managing inventory, and fulfilling shipments in a timely manner. Honestly, it’s a lot of work. Besides, using an old pen and paper or even writing everything down in a Word document isn’t going to help.
This has to be streamlined for longevity, so you might want to consider supplier management software, maybe even logistical software, and it’s even better if you’re able to outsource your fulfillment. While maybe not all of these are possible immediately, if you really want to grow and expand your B2B wholesaling and supply, you’ll need to adapt and make changes where possible.
Minimum Order Requirements
Something else you need to consider is minimum order requirements. The whole purpose of this is to ensure that each transaction is financially viable for your business. If you go on websites like Faire, all wholesalers have a minimum order requirement. So, you’ll need to consider factors such as production capacity, inventory management, and shipping costs when setting minimum order quantities.
