Size Matters - How Large Should Your Line Be?
Lesson 4 from: A Beginner's Guide to Wholesale SalesKatie Hunt
Size Matters - How Large Should Your Line Be?
Lesson 4 from: A Beginner's Guide to Wholesale SalesKatie Hunt
Lesson Info
4. Size Matters - How Large Should Your Line Be?
Lessons
Introduction to Wholesale
08:50 2Wholesale vs. Retail - How are they Different?
06:31 3Create SKUs That Meet Industry Standards
06:36 4Size Matters - How Large Should Your Line Be?
08:44 5New Product Releases Drive Sales
13:27 6Can You Have 100 Pieces Ready By Next Week?
15:21 7How to Calculate Your Product Cost
03:45 8How to Find Your Wholesale Pricing Sweet Spot
04:05Lesson Info
Size Matters - How Large Should Your Line Be?
How large should your product line b this is a question I get frequently and really it does very based on the type of product you're offering, but the main point I want you to hit here before we get into some of the numbers are you want to have a robust product line, and the reason for this is as much as we'd like them tio retailers are not going to purchase every single item that you carry, we wish they would, but they don't. So you want the line large enough that they can pick and choose and select things that fit their store and they're in customer, but still meet your minimum order dollar requirement. So, you know, again, this really, truly depends on what products you're offering, and then what your minimum order amount is so so the quantity will correspond with that, and also to the price of your products, right? Like, if your product price point is a certain level, that's gonna correspond to what your opening order amount is, but basically, and we're going to do math example in ...
just one minute on this, but you want to aim to have five or six times the number of skews needed to reach your minimum order, so I think this is best qualified through some numbers, um, here's, some sample order minimum order amounts on on the screen, if you're in the jewelry industry it seems to be two fifty two, three hundred is a common wholesale opening order mountain this is the dollar amount somebody needs to spend with you to place that initial order oftentimes reorder amounts are slightly lower candles it's one hundred fifty to approximately three hundred is what they need to spend with you stationery good is is around hundred fifty textiles I looked at some tote bag companies and beg ooh and some other and they seem to be right around the two hundred fifty mark or above, but as you can see, they very it varies greatly. So really do your homework and find out what kind of your industry standards are so here's the example I wanted to run through because they think that sometimes these abstract numbers can be hard to focus on without example but let's pretend we've got awesome candle company and they have a minimum opening order amount of three hundred dollars the average price per item is about twenty dollars and you have to buy three m o que means minimum order quantity and that's how many of these skew do you have to purchase of each of one item? So if she's buying if you're buying three of one skew at twenty dollars a pop that's sixty dollars just for that one skew that means that you need to purchase five right to get to the three hundred mark it's everybody following me okay so the number of skews you need tio is five so your goal number of products how many products you want to have in your line should really be between twenty five and thirty excuse because that gives retailers plenty of choice to place an order and still hit that minimum opening order mt yeah, sure online so one user says I sell personal care products and they're currently doing well on amazon but I'd love to investigate wholesale orders is there a big risk of wholesale cutting into your retail market? Could a wholesaler undercut my own pricing and once you set up a wholesale account can you set the terms of dictators where they fell so yes they will no they cannot undercut but yes you will be setting your terms and conditions you'll be setting your opening order amounts you you're going to be dictating a lot of what the rules are for this and we will be talking later in the course about the correspondence between retail pricing and wholesale pricing and how it's really important that they're in sync because we don't want anyone undercutting anyone else but but I will answer that in more depth later if that's okay okay cool thank you yeah no worries um talking about opening order amounts and how larger line should be does anyone want to run through an example with your line with the greeting card industry um sort of what we learned was forty cards was the absolute minimum which is where I started I found that I need to sell about twelve styles to for someone to meet an opening order minimum on dh so that puts that's fifty eight fifty sixty house yes sixty so my line is growing before I do another trade show I wanted to be closer to eighty right because I've seen as you pointed out that a retail you know all my stores have very different tastes right and rids interesting just kind of see what collection cards they select right on dh and so I do want to just really work toward more variety so that I'm hitting a lot of different markets yeah at a curiosity is the difference primarily geography based yeah yeah geography I might also say clientele you know you can kind of tell by a store's website and their overall look if my what age group there they're selling to on so that also varies is in addition to the geography right right great thanks for sharing okay so along with what oh yes your question sure online um let's see here iraqi division says it has a skewed question ok how do you calculate the number of products for one ofthe products they may he made here she makes collections they making my collection but they're trying they're wondering how you have they can calculate the number of products for one ofthe what what do they sell to the say? Does it say ok, in that case, if they primarily working collections, I would have sq for each collection, like maybe the letters correspond to the collection of whatever that style or theme or whatever that is on? Do you know the numbers would correspond with just a sequential? Whatever you know, how many products are in that collection if they have a one off section item? I'm not understanding the question hundred percent, but I think if they have just one ofthe things that don't really fit into a theme or a category with one of these pre established collections maybe make a skew that has some letters at the beginning that are just for this kind of these one off projects like it's, its own bucket for things that don't really fit anywhere else so it becomes its own collections otis vig on dh then have numbers that correspond just as they add new thing I just got some more information, so she hand paints silk scarves so cool and it sounds like she's wondering if there's a house you can calculate the number of products perhaps that's you talked about the number of yeah, well, there is going to go back tio it's going to go back to figuring out for the scarves how in that area I'm not as familiar with as I am, you know, the paper world in the gift world but that she's going to need to look at other companies that sell similar products and see what the they have is their opening order amount and typically how large their line is but if she can figure out what that industry standard is for the if you can figure out with the industry standards for that opening order amount, you can run through this equation to kind of figure this equation to figure out how large of a line you really need toe have um but really, you know, aimed for twenty to twenty five products that minimum minimum and the thing is too I do I should have prefaced this earlier we all got to start somewhere, right? So don't beat yourself up if you can't get to that larger, you know five to six times skew, you know, start somewhere, start creating start building that line if it takes you a while, it takes you a while, but that's okay, it's, just important to have these goals of ok here's, where I really want to be before I start wholesaling and here's, where I'll be best suited for the wholesale market where I'll get more sales because if you don't have larger of product line again, retailers might say, I'm not ready, I want I want to see more out of you. I want to make sure that you're serious about your business, so that's, why you really wanna have I keep seeing robust line, but you do. You want to have a thought out, full line? Does that help? Hopefully, that she actually has responded, that was really helpful. Oh, good, I'm glad. I'm glad to hear you think.
Class Materials
Bonus Materials
Bonus Materials with Purchase
Ratings and Reviews
Katy Casey
AMAZING, amazing course and fabulous instructor. Katie knows so much and does a fantastic job sharing specific, actionable insight in this course and the entire bundle. I can already tell that it's a resource I'll reference again and again as I grow my product line and I'm so happy I invested the time in it.
Laura Bridges
Katie is a very straight-forward and encouraging teacher. I was fortunate to be in the studio audience for this group of classes and have learned so much! I have had some help from friends in the industry on setting up wholesaling, however I was missing a set structure and strategy to get it off the ground professionally and timely. She makes the steps very clear, with ideas and references on how to do it or outsource what you need done. Katie ads her own experience to all of these steps, which is so helpful to hear. If you want clear, specific, strategic steps to take next to develop your own successful wholesale business, these are the classes! Katie is awesome! Thank you!!
Danielle Jones
I've taken 14 pages of notes with great guidelines and best practices for pricing, SKUS, releases and more. I'm feeling much more confident knowing the standards after taking this course. Katie is amazing!