How to stock a shop

I thought I’d start some blog posts and share some pointers for new designers just starting up – and for those already started but need that next level push…

I’m still learning after all these years, and I’m a graphic designer so I’m a step closer in being able to produce a ‘look’, but it’s incredibly important. Get your brand looking polished and ready for business.

GET READY

Your product is good but have you thought about the supporting materials it needs? Do you have gorgeous packaging and a nice swing tag? This doesn’t mean loads of money needs to be involved, but you need your brand consistent through your packaging, marketing materials, social media and website. It could be as simple as a rubber stamp on card stock, or be beautiful printed tags and wraps around your product. Cost these into your final product too – don’t price yourself out of the market. Especially when you need to consider wholesale pricing…

INVEST IN YOUR BRAND

Does your packaging look a little homemade? Does it look professional? Do you have a professional website? Ask yourself with all honesty. Ask your fellow creatives for feedback and take it onboard. Your skill is your beautiful product and sometimes you aren’t so good at the finishing touches to surround your brand.

INVEST. This means engaging a graphic designer to help you get your website, logo, marketing materials and packaging looking really flash. And no, I don’t mean using an overseas mass-produced market that offer $5 branding. If you expect people to believe in locally made goods, do the same for others. Talk to graphic designers, ask others that have awesome artwork for their packaging where did they get it done. No one should feel threatened about using the same designer, they aren’t stupid enough to regurgitate the same stuff out to two clients.

I’LL PAY YOU HALF: WHOLESALE AND CONSIGNMENT

You have a price and you sell an awesome amount on your online store like Etsy or at local markets. Then a stockist approaches and asks ‘what’s your wholesale terms?’. Well, what are they? 

My general rule to guide pricing is below. Let’s say it’s a hat worth $20 rrp:

Final costing for production, your time and packaging. ie. the finished item = $5
Price for wholesale = $10
Price for retail = $20

This then leaves you scope for spot sales online and having specials at markets. If you supply wholesalers, make sure you don’t upset them by appearing at local markets near them and undercutting too much (they can’t price down like you can). Courtesy is to direct people to your stockists to purchase when you aren’t around.  Your stockists are loyal if you are.

I don’t like consignment but I have to do it with some of my creatives. As my shop is new (coming up to 1 year old soon) it’s hard to buy in stock not knowing what the local market is. I’m fine with my own products and confident they sell as I supply so many shops around Australia. Consignment can be beneficial in some instances like if you want to swap your products in and out of a store to get a feel for the local market (and say you have a designer market coming up, you might need more stock at hand!), the shop generally only asks 20-40% out of the sale so it’s not great for them, but they aren’t stuck with stock that isn’t moving. If I have a stockist that isn’t confident or doesn’t know my product, sometimes offering short-term consignment can secure your products into their stores. Best to get to know the owner and see how they work.

‘But I can’t do it at that price’ you might say. If you are SERIOUS about doing your designs as a business, you need to work this out. You might need to work out your long term plan in getting your product produced in bigger quantities. Can you invest in other local creatives to get quantity happening, can you look at just outsourcing a component, what can you do to get your business moving. Or can you increase your product slightly to allow for a profit margin?

BUDDIES

Do you have other local creatives you bounce off? Have you joined local business groups, online groups or have ways you can share without fear of being ripped off or copied? I have so many other creatives that I like to share ideas with, ask ‘what do you think of this?’ and feel so proud that they also ask me too. We need support… it can be a lonely world working for yourself, so look to your buddies to help you out. I always ask my kids too for feedback on designs. They can be cruel (LOL!) but do make me rethink colour schemes or get me to move around things – and they are usually right!