A MAN SHOULD NEVER GAMBLE….

Deciding if you should do a wholesale show.

When people ask if they should do this big-name show or that new wholesale show, I think of that old song by musician David Bromberg….

“A man should never gamble
more than he can stand to lose….”

(From his song, “Diamond Lil” on the Demons in Disguise album.)

This question came up again in a forum I frequent, and this is my response:

I haven’t done the ACRE show in a few years–I did their first show in Las Vegas, and stopped doing wholesale shows soon after, after about seven years of doing shows like BMAC (wholesale), ACC Baltimore (wholesale/retail) & ACRE Las Vegas (wholesale).

Here are some points to consider:

1) Wholesale shows are EXPENSIVE. And even a good wholesale show is with an established reputation and good management, is not a sure thing. Used to be, but not any more.

2) First year shows are notoriously dicey. An artist friend with 30 years in the biz recently told me, “Never do a first year show or a show you can’t drive to.” I’ve learned the hard way this is excellent advice on both counts.

Wholesale buyers are still being cautious, and buyers at first year shows are the most cautious. Adding travel costs and shipping costs (for your booth) on top of that and you can easily spend $5,000 on a show with no guarantee you’ll get the orders to even recoup your investment (let alone enough to make a profit.) I don’t know where you live, but that’s something to consider.

3) Who are your customers? Who do you hope to find there? Years ago a good wholesale show would draw from stores and galleries across the country. Now, more buyers tend to stick close to home. So there MIGHT be buyers from all over, but it’s MORE LIKELY the buyers will be local. So…are stores in Orlando and Florida your target audience?

4) Have you done any shows at all? Even smaller, local ones, just to tweak your booth, display, selling skills, support materials?

I’m all for people going for their dreams and dreaming big. But you say you’ve only been in business a few months, and you’re still in the process of “building a website, creating a collection”, etc. Doing a wholesale show is a huge outlay in money, time, energy.

Are you–and your business–ready??

You might be one of those people we read about who takes that leap and flies. But doing a wholesale show is a HUGE leap, one that’s daunting even for people who already have some experience doing small shows, doing wholesale, etc.

Almost all shows across the country, retail and wholesale, have taken a hit in attendance and sales. And $3,000 is a lot of money. So…..

5) Can you afford to gamble $3,000–and lose?

My advice: I think the smarter bet is to take advantage of the Visiting Artist/ABI program. I was actually a guest faculty member for ABI, and it’s a good deal.

The critique will be helpful (though remember, even expert advice is still just one person’s opinion). They can advise you on all kinds of wholesale matters: Are you sure you’re making an adequate profit on your product? Do you have reliable sources for supplies? (If one critical supplier drops out, can you still make your product?) Are you solid on your production schedule and shipping procedures? Are you familiar with industry standards re: billing, payment, terms, etc.? Do you know how to qualify your buyers?

And you will get a chance to actually visit the show.FWIW, I think the most educational thing any craftsperson can do (who wants to do a wholesale show) is to VISIT THE SHOW FIRST. You’ll get to see what the deal is, you’ll be able to see how many buyers show up, and you’ll get to talk to exhibitors (if they are not busy and if they are willing, of course).

I wrote a entire series on how to wholesale on my old blog, but this new series I did on how to “half wholesale”–get started building your wholesale biz before doing a major show, may be more helpful to you. You can see links to both series here.

And all this information was before selling on the Internet became a “big deal”! Add in all you know now about websites and selling in your own online store, and you’ll be off to a good start