LumberJocks

Owning your own business (Post #15) Marketing and selling

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Blog entry by nate22 posted 1238 days ago 663 reads 0 times favorited 5 comments Add to Favorites Watch

Good morning lumber jocks. I finally got a break for a couple of days from the shop. For the past couple of months I have been throwing the idea around in my head about selling my beds to stores. But the only problem is I am not sure how to maket or price my beds to sell to stores. Then I thought I got a uncle that has owned his own business for 40 years. So I emailed his son ( also my cousin) and ask him if he would help me market and price my beds to where I could sell to stores. That and I feel like I am not charging enough for them. I make money but I still feel like I short myself somewhere. So my cousin is going to come out to my shop in the next couple of weeks and he is going to help me do that for me. That and I don’t mind dealing with people, I would just rather sell to stores and let the people buy my beds in stores. So thats where I am at in my business plan. Working on a market plan to sell to stores. But I know I keep god first in it, it will work out the way it’s suppose to.

Isiah 40:31 But those who wait upon the lord will renew their strength. They will soar on wings like eagles. They will run and not grow weary. They will walk, and not faint.

-- K & N Furniture Middlebury, In.



5 comments so far

View SteveMI's profile

SteveMI

848 posts in 1921 days


#1 posted 1238 days ago

Be prepared for the stores to want them at 60% of the retail price they will sell them at. Their retail might be different from what you have been selling them at, but they will probably want you to not sell them within 50 miles of one of their stores or not sell them for less than what they set their retail at.

A “store” or even website is going to commit to floor space, warehouse space, advertising, handling shipping, customer service… The 40% markup is probably right. Also, they will eat their investment if the product doesn’t sell.

I’ve started doing some wholesale and have learned that you will quickly learn if you have been selling too cheap. I give two prices; one is if they buy them outright and the other is if they are on consignment. Consignment is 20% from retail. Outright requires 40% of the order up front to cover materials. The percentages may seem insulting to some, but that is how business is done. Plus, you can just work in the shop and not be out trying to sell after the fact.

I had a friend that was selling an item and approached by a big name store chain. Everything seemed great until they wanted to place an order for 2,000 units, delivery in 60 days and payment in 90 days after delivery. Couple problems, person didn’t have capital for 2,000 units of material, didn’t have means to transport 2,000 units to the warehouse and couldn’t make 2,000 in 60 days. Plus they wanted a presentation of the product at thier corporate headquarters 800 miles away on the friends nickel.

Steve.

View nate22's profile

nate22

424 posts in 1502 days


#2 posted 1238 days ago

Thanks for the advice steve. And thats why I am going to talk to my cousin about all of that. My uncle has dealt with stores for the last 30 some years and he knows all about that stuff. Thanks for the input and advice.

-- K & N Furniture Middlebury, In.

View sawblade1's profile

sawblade1

754 posts in 1654 days


#3 posted 1238 days ago

Steve Great advice, Nate be careful, going big too soon could spell trouble. I plan on doing this with my chairs eventually but for getting my chairs in stores locally I am looking to do this on an almost consignment type basis this way it is a win/win situation they win on a 8-10% commission I win with making a profit :) eventually I would like to be making RTA kits but this is on down the line a way’s Plus look into opening your own show room then you can give the locals a real run for their money Just a few Ideas that kicked into my head :)
have fun and keep God first and the rest will follow :)

-- Proverbs Ch:3 vs 5,6,7 Trust in the lord with all thine heart and lean not unto your own understanding but in all your ways aknowledge him and he shall direct your path elmerthomas81@neo.rr.com

View BigTiny's profile

BigTiny

1664 posts in 1515 days


#4 posted 1238 days ago

If you can find a store that will work with an 8 or 10 percent commission, kiss them! The average is going to be closer to 25 or 30.

-- The nicer the nice, the higher the price!

View SteveMI's profile

SteveMI

848 posts in 1921 days


#5 posted 1237 days ago

Another thing is to focus on independently owned stores as they can make a decision on having your product or not. Any kind of franchise or chain is going to have strings on the owner for what they can carry.

Most independents, if they have the space, are at least willing to talk about consingment.

As Big Tiny said, hugs and kisses for less than 25% discount.

Most of the time they know their customers and market, so just increasing what you think the retail price should be isn’t going to help. It could be worth more in another sales place, but they know what their customers will bear.

Steve

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