The following terms are important ones for you to be familiar with because the set the rules for the craftsperson-buyer relationship. These terms should appear on your wholesale price list.
Payment Terms
New Customers should pay either by COD or Pre-Pay (also known as Pro Forma). Most often, buyers will send you a check or a credit card number. Be cautious about COD—your shipment may be refused by the buyer and you are responsible for all shipping costs!
Established Customers are usually given Net 10 or Net 30 payment terms. In other words, they have either 10 or 30 days from the time of shipment to pay you. Some craftspeople give Buyer’s Discounts if paid within a certain amount of time.
Shipping Terms
Shipping costs are charged to the buyer. Consider adding on a handling fee that covers your time for packing the order and the cost of shipping materials. Or you can add that into your indirect costs when establishing your wholesale price.
Specify the carrier (UPS, USPS, Fed-Ex, Freight) you will use to ship the order to the buyer.
Production Policies
1. Minimum dollar amount the buyer can order.
2. The amount of time it will take you to complete the order.
3. Cancellation Date for the order.
4. Deposits or Down payments for custom work.
Information to Glean When Receiving a Wholesale Order
1. Their billing and shipping address.
2. The date they want you to ship the order.
3. The contact person’s name, phone number, and e-mail address.
4. Give them a copy of their order and keep 2 copies.
Printed Materials Needed for the Wholesale Market
Create materials that communicate the character of your business and inform the buyer of your products and terms.
1. Create a logo and use on all of your printed materials. This creates continuity.
2. Business card
3. Price List—give products a number or code. This makes it easier for your buyers to order your products.
4. Visuals of your products.
5. Brochures
6. Order Forms
Create materials that help your retailers sell to their customers.
1. Hangtags
2. Shelf literature
3. Artist bio
Communicating with Buyers at a Trade Show
1. Be professional in dress and demeanor. Be in your booth, pleasant, and ready to sell!
2. Display wholesale prices.
3. Have printed materials ready to hand out.
4. Collect their business cards. This creates an opportunity for follow-up.
5. Create pre-packaged displays and sets. This makes it easy for buyers to place orders.
Summary
Tapping into the wholesale market can increase your income substantially. The Kentucky Craft Marketing program (www.kycraft.ky.gov) provides assistance to artists and craftspersons who want to wholesale their products. Call (888) 592-7238 for more information.