Making the decision to exhibit at a trade show is a big step in any person’s wholesale career. It is also an important one, because only at a trade show can you meet hundreds of qualified buyers for your product. You can chat with them, give them tons of information about your products, and walk away with a file full of orders. So, I am a big trade show advocate, particularly for people in the early stages of their wholesale business because it can truly propel the growth of your business in many ways.
Having said that, it is also true that many artists take the trade show step prematurely. It sounds rather simple, apply to the show, pack your products, display them, and bring plenty of order forms – what could go wrong? Unfortunately, plenty! A trade show is competitive – there are hundreds of exhibitors vying for the attention of those buyers, and most of them are experienced professionals. Before you take that big trade show step, take a look at this checklist of prerequisites for success:
Structure Your Products for Trade Shows
First, is your product line trade show ready? Are you exhibiting a cohesive group of well-made products and are you prepared to produce all of them efficiently? This might be a good time to eliminate products that are intrinsically difficult to mass produce, or to add some that make your production easier. You do not have to wholesale everything you make. Instead, you can designate those that are more complex for your retail customers. You might also want to add a few additional items or even include new sizes and colors for existing products.
Group Small Items
If your products are small and inexpensive, have you organized them into groupings? You do not want to be selling one candle, one bar of soap, or one tube of lip balm at a time! So, group them by color, fragrance, or size and sell them in multiple packs. You also should have packaging devised for them, so they are easy to ship.
Have a Line Sheet or Catalog
This is simply a list of all your products, with their SKU code, price, and perhaps even a photo. Even if the potential customer does not place an order at the show, this is a marketing piece that they can take with them as a reminder of your business.
Make Sure You Are Priced For Wholesale
Speaking of pricing, do you fully understand wholesale pricing? You must realize that the store buyer is likely to be marking up your products anywhere from 2.25 to 3 times (or even more!) the wholesale price. If you are selling the same product retail on your website, or on Etsy, or even at art fairs, the buyer wants to make sure she can compete with you, so your retail price must be at least 2.25 times the wholesale price. Nothing will doom your success faster than violating this basic premise!
Have a Production Calendar and Directory
This will ensure you can give your customer an accurate ship date. Also be sure you have a directory of your other wholesale accounts so you can assure the buyer your product will not be in her competitors’ shops.
Establish Your “Terms of Sale”
The final step before selling wholesale is to set up your “terms of sale.” Basically, these terms will outline the way you are doing business. First you must establish a minimum order (and reorder) amount, usually it is a dollar amount, although you can specify a certain number of products, especially if they are very expensive. Having a minimum order is important because you certainly do not want to be selling one or just a few items at the wholesale price. However, I urge you to make your minimum order realistic and friendly. It should not be a barrier for interested buyers. If it is reasonable, many buyers will exceed your minimum to achieve the selection they want for their store.
Know Your Payment Options
Other “terms” include payment options. For most new accounts, this usually means payment by credit card before shipping. Do not require a deposit, that is a definite turn-off. However, you may want to extend 30-day terms to non-profits such as museums. You can also add policies concerning returns, damage, and dealer exclusivity. All of that is totally up to you.
Make sure you have a couple wholesale customers before going to your first show.
A final way to be certain you are ready to do a trade show, is to already have at least a few wholesale customers. It is usually recommended that you have between five and ten wholesale customers before your first trade show. That ensures that you have the important basics covered and you are familiar with the wholesale process.
The best way to inexpensively find your first wholesale customers is to look locally. If there are shops in your area that could be a good fit for your product, ask the owner or buyer if you can make an appointment, not necessarily to sell your product, but mainly to get their feedback. Listen carefully, they may be giving you some vital advice!
You might also want to investigate selling on a wholesale platform such as Stockabl. Many wholesale platforms exist, and you will need to submit your products to their jury system. Investigate which platforms are best for your type of product, as well as the expenses involved in selling on that platform. Once you are on a wholesale website, use your social media to let folks know where they can find and purchase your work.
Know What You're Walking Into
When you have at least five wholesale accounts, it is time to begin investigating trade shows. Talk to a lot of people who make a similar product and are successful at trade shows. Ask them what shows they like and why. Find out which shows fit your calendar and time frame. It is seldom advisable to do a show “at the last minute.” If it is at all feasible, visit the show before signing up. Walk the entire floor and talk to exhibitors, buyers and show personnel. Take lots of photos of the booths and the displays you find attractive.
As you narrow your selection, begin to assess the cost of doing that show. Find out what the booth options might be. Do they have an “Emerging Artist” booth for first time exhibitors? Find out what exactly is included in your booth fee and begin to design your space. At many shows “pipe and drape” are included, but hard walls are an added option. Most shows include some type of carpeting, but many artists add a floor that coordinates with their design. Basically, the space you rent is your store, and you can design it any way you like.
When you are estimating trade show expenses, try to be as inclusive as possible. Some halls are “union shops” and you must defer to them, and pay them for many tasks, such as moving your freight or hanging your lights. This is when talking to an exhibitor at that particular show is extremely helpful because they might be able to help you avoid some charges or at least accurately estimate them. Also, do not neglect to figure the costs of your transportation, housing, parking, and meals – these can really be substantial over the course of four days or more especially if the show is in a major city.
Doing everything outlined above may very well take many months or even a year. However it is extremely important to spend this important time really planning all the details of your wholesale business. Spend plenty of time talking to makers who are trade show savvy and ask detailed questions. The more prepared you are, the better the chances of having a very successful show. Stay tuned for our next article where we will give you a complete rundown of how to create a great booth for your first show. Certainly you want to make your first trade show a successful debut for your wholesale business!
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