Tips About Selling at Trade Shows
- The wholesale buyer is the same as a consumer. They still judge a product by quality in relationship to price. The big difference is that they buy in quantity and often become steady repeat buyers for many years. You display at a trade show the same as a retail craft show. You only need to bring samples of each product, in the colors and styles you wish to sell.
- You do not need a large inventory to do a trade show. Trade shows are usually ORDER TAKING shows. This means you can take the orders and then produce your products based on the orders received. This is cost effective and controls inventory investment. Retailers do not expect immediate delivery. Some Shows are cash & carry or a combunation, where you can take orders and/or sell directly at the show if you want to. The show promoter will always tell you what options you have.
- Delivery date is controlled by you. Set up your delivery schedule based on the volume of orders received. Some exhibitors set the delivery time as show sales progress. For example, if you get a hugh amount on the first day, then the second day you schedule those orders for later than the first group, and the same with the third day. This way you can arrange delivery based upon your production time. Always allow yourself sufficient time to produce and deliver orders. Stores do not expect immediate delivery, just that you deliver by the agreed upon date. This is always open to negotiation with each buyer.
- Price is important. Make sure your wholesale price provides you with adequate profit. If you do keep accurate unit costs of each product that includes overhead, materials, fixed expenses and labor then you have an accurate basis for your wholesale price. Wendy Rosen, founder of the Rosen Group, and creator of the Buyers Market of American Crafts, says that most crafters do not charge enough. She recommends that most crafters should take their retail price and deduct 20% to arrive at a wholesale price. While you may make less on wholesale orders, the volume usually more than makes up for it, especially when you consider the time and cost of doing craft shows where you sell one or two items per customer.
- The minimum order amount can be set in several ways. Establish a set amount like $50 to $200, with reorders at a lesser fixed amount. The amount is based on what you feel you need you need to make it worth while for you to produce, pack and ship the order. Another way to create a minimum amount is by the quantity you sell each item. You can sell an item in 3-6-9 or 12 piece groups, assorted colors or styles. You can put compatible items into a group of 1 each in an assorted packs. A good rule is to follow the size packing you purchase in. If T-shirts, or baskets come in pre-packed sizes, then set up your sales to follow accordingly in determining how to set up your pre-packs. Small retailers often will buy more when a product is available in assorted sizes, styles or colors. It allows them to offer more variety to their customer without buying so many of one item to get color, size or style assortment You will often benefit in larger volume orders. Many vendors offer no minimum at shows, but offer special show packages ( a grouping of a variety of products) which when ordered together offer a discount over buying each item separately. Some offer graduated discounts like, 2% for $100, 3%, for $200, 4% for $300 & 5% for orders over $500 etc. Offering no minimum at a show often encourages a buyer to try your products, and many times once they start ordering actually exceed what your actual minimum was.. Others offer no minimum, but charge a $5 to $10 handling charge on orders under $100 to defray packing & handling expenses.
- Freight is always paid by the customer. Some companies, as a perk, offer free shipping for orders over a specific amount. This encourages larger orders and re-orders. Some just offer it as a "show special - free freight" on orders placed at the show. This encourages placing the order now, and sometimes larger orders.
- It is not necessary to have a catalog or full color brochure for a trade show. If you do it is acceptable to charge for a catalog, most offer a refund with the first order. Just having an order form with your prices, product description, color or style selections listed is all that is necessary. Always include you selling terms, return policy or any other information you want the buyer to know on the form. Then the form acts as an order form, packing list and sales brochure to give buyers. A pre-printed form also saves you time in taking orders at a show, and prevents errors. You can type your own and have copies made, or have a quick-print printer set-up the form and print it for you. Standard white paper with black ink is all you need.
- Payment terms must benefit you. We do not advise offering open account to new accounts. Either require 100% pre-payment with the order, or 50% down, and the balance COD cash/certified check only; or credit card payment. If you do not offer credit cards, NCA can help you get set-up with a merchant account for Visa, MasterCard, Discover & Amex, usually within 30 days, at very competitive rates. Just call for complete details.
- Do not be intimidated by wholesale selling. Experienced sales reps in arts & crafts tell us that on average for a regional show a vendor can expect $10,000 to $20,00 spread over many orders. Offer your delivery to accommodate your production time. Offer split delivery on large orders, like 1/3 or 1/2 shipped at intervals you feel comfortable in meeting.
- The National Craft Association is an information & resource center for artists and crafters from beginner to seasoned professional. To receive free information on how to turn your arts or crafts into CASH...Call 1-800-715-9594 or Fax 1-800-318-9410 or E-mail Your mailing address to NCA.
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