Why You Need To Start Selling Your Soap And Skincare Products Wholesale Today!

Today's blog is an overview of a YouTube Video I have created and in which I cover the topic in greater detail. If you would prefer to watch the video (recommended for the most imformation) you can find it here. 

In my The Dog and I business as much as 70% of my sales are wholesale and I absolutely swear by it as a method to grow and create a good income without having to attend in person events. Without it I do not think I could have got to the point that I did whilst working just a couple of days a week alongside my demanding day job. That is a whole different topic and not one I will be expanding on here but I wanted to give context to the reason why I am such a fan and that it is not just something I am talking about as a topic for the sake of it. 

What is Wholesale?

Wholesale refers to selling your soap and skincare products to other businesses at a reduced price. These businesses will then resell your products to their customers at a higher retail price. Whilst this may seem counter intuitive from a financial perspective it really does not pan out like that. 

The reality is that you can put more effort in to your zone of genius which is making and creating and your stockists will do the sales and marketing for you which is SO time consuming if you do not have a large audience.

Benefits of Selling Wholesale

• Economies of Scale The more you produce, the cheaper it becomes to acquire raw materials.
• Stronger Relationships Building relationships with wholesale customers creates a reliable income stream.
• Increased Brand Exposure Wholesale partners act as additional "shop windows" for your brand, reaching new audiences.
• Improved Inventory Control Regular wholesale orders allow for better production planning and inventory management.
• Reduced Marketing Costs Wholesale partnerships can generate social media content and attract new customers through brand recognition.

Different Wholesale Methods

• General Wholesale: Selling your existing branded products to retailers, online stores, subscription box companies, etc.
• White Label: Selling your products with the branding of your stockists.
• Private Label: Creating custom products specifically for a particular retailer with their branding.
• Consignment: Supplying products to a retailer who only pays you when they sell an item. (Not recommended for most businesses due to risk and lower sales)
• Drop Shipping: A platform handles order fulfillment while you manufacture the products or it can involve a platform such as Faire or Amazon where they sell and you fulfil - there are several different ways this can pan out.

Pricing 

To make this work you need to get your pricing right from the outset. As a guide potential stockists will be looking to purchase at around 50% of the RRP.

Some will require a higher markup of around 2.4. That means they will want to sell at 2.4 x the wholesale price. This sounds a lot but the reality is they may be VAT registered and if you are not they will lose 20% immediately, they will also have a ton of other overheads AND they need to make a profit.

The benefit to you however is that you can set a minimum order value and concentrate on streamlining your systems and processes to make larger quantities in the same amount of time. Many people will not consider this is the early days but your time is quite possibly one of the most valuable assets in your business. 

Why Selling At Wholesale Is a Game Changer

I have covered what it is and how it can benefit you but to finish off I wanted to reiterate the impact it has had on my business. 

At one point I had around 70 stockists, some smaller who ordered as a one off or once or twice a year. Others were a little larger and placed large orders that were an effort to get made up at the time but gave a welcome cashflow boost (think £1000 to £3000) Some order monthly and they are the ones I can rely on to keep me ticking over. 

When Covid hit many of my stockists closed but unexpectedly my website sales jumped - everyone who had been buying from my bricks and mortar stockists looked for me online instead.

Fulfilling wholesale orders also takes the pressure off for social media, it gives you content and social proof at the same time. You can share so much, making up orders, shout outs for your stockists, delivering to your stockists and more.

I know the idea of taking this next step in your business can be a daunting one but it really does not need to be, stockists are just another customer albeit one purchasing with different terms and conditions than your retail customers.

My Top Tip

Have a well designed wholesale catalogue to send to potential stockists. It showcases your products and professionalism. Here are some things to include.

• Information about your company
• High-quality product images with descriptions
• Links to your website for detailed product information
• Trade prices
• Minimum order quantities
• Useful information 
• Testimonials (optional)

This is a big topic and one that I cover in depth inside the Soap Suite including ideas for potential stockist partners, how to go about approaching them and a very handy Canva template for a wholesale catalogue. Don't want to join the Soap Suite but need the Canva template to create your own catalogue? You can find that in my template shop here.