Wholesale and boutiques

Selling through boutiques and other stores widens your reach without paying to win each customer, but it needs a margin that can survive the wholesale price.

Calculate before you pitch

The wholesale price is usually about half the retail price, and it varies by market. In the example, a retail price of 60 means wholesale near 30, and with a piece cost of 20 only 10 remains before shipping the order. Check that the margin is enough before you promise anyone.

How to approach a boutique

• Choose boutiques whose customers resemble yours, not any store.
• Send a line sheet of one or two pages: clear photos, prices, minimum order, delivery dates.
• Offer a sample or a small trial order.

Terms to write down

• The minimum order.
• How and when payment is made: a deposit or after delivery.
• The returns and exchange policy.
• Who pays for shipping.
• Whether the boutique must keep a minimum resale price. Check local law.

Exercise

Write a one page line sheet for three pieces and shortlist five suitable boutiques. Work out the wholesale margin of each piece before you write to anyone.