2020 has been a whirlwind for us all. I typically cope with stress by crocheting. So, I have done A LOT of crocheting, but not much designing or blogging.
All of my stress crocheting has brought up an opportunity to bulk up on items. I used my Mainstream Beanie and Ear Warmer patterns because they work up BEAUTIFUL using very little yarn. You can make an adult beanie with less than 200 yards of worsted weight yarn! I use I LOVE THIS YARN! from Hobby Lobby for these patterns. They only use a Half Double Crochet Stitch, but have an interesting look. So, beginner friendly and works up quick, its a WIN WIN!
Starting in March 2020 after the COVID-19 Pandemic shut down the country I made a ton of hats and ear warmers. I had no idea what I would do with them. I thought I could maybe enter in a Craft Show, if they had them this year? Or sell on my Etsy Shop? Or maybe even post for sell on Facebook?
While I was stocking up on items, I was approached by 2 ladies in my area who were opening boutiques and knew I crocheted. They wanted me to make items for their shop and sell them at Wholesale cost. Well… I’m a designer and some times sell finished goods. I have never mass produced product. But hey, this way I could make sure I stayed busy de-stressing myself and make a little extra cash…right?
Here’s all my tips and tricks below for how I handled selling my crochet goods wholesale.
Wholesale Tips
1. Get on the Same Page with your Buyer.
This is so important! Discuss with your buyer what they are wanting and what you are willing to make, BEFORE HAND. This may involve several conversations.
I decided I would ONLY make my Mainstream patterns (for reasons mentioned above – quick, pretty, little yarn used, and if you tried these patterns you would understand). I only buy my yarn from Hobby Lobby using I Love This Yarn! If you are familiar with this yarn you know it comes in ANY color. I decided to only offer the top 10 colors. But you can use your favorite yarn and this may narrow your choices even more.
Like I said, this took several conversations. I showed the product, color options, and sizes. Then let my buyer think about what she wanted.
2. Decide on Wholesale Price
Now, this was a bit difficult for myself and is likely difficult for you too. I get lots of questions about how much someone should sell their finished product for. And I usually cannot answer that. It depends on detail of the pattern, material cost, and the market.
I am in Indiana and have been selling crochet goods for about 10 years. A lot of people in my community know me for crocheting. I will only put out quality items and have done that from the beginning. I also have about 25 years of crochet experience, so I take that into account when I sell. These are all factors you need to consider – quality goes a long way with customers.
determine the cost to make
To sell wholesale you want to know how much it cost to make the product. Using I Love This Yarn! I can make EXACTLY 2 adult beanies. So, that’s $2.50 a beanie in yarn. I use logo tags on EVERY SINGLE ITEM I make (see below). These make my items look professional. I get them from thebeamcity.com and cost about $.80 a tag for the .6 inch no sew cork tags. I purchase my pom poms from Amazon in bulk (affiliate link). They cost about $1 each. I also need to sew a button to the inside of the hat, which I bought off of amazon costing about $.10 each – affiliate link to buttons. Each beanie cost about $4.50 to make.
retail vs. wholesale cost
I am going to be completely transparent here. I sell my crochet Mainstream Beanies for $20 for adult to child sizes and $18 for toddler to baby sizes. The Mainstream Ear Warmers sell for $18 for adult and $15 for child. THESE ARE NOT WHOLESALE PRICES. These are RETAIL prices. If someone approaches me and want a beanie or ear warmer, that is the price. I do let them pick out their own colors and are made to order. THESE ARE NOT ETSY PRICES OR PRICES THAT INCLUDE SHIPPING. If selling online, you need to take listing and shipping fees in to account. These are prices for the locals, friends, or even family.
Now that I know that price, I need to know how long they take to make. If I work straight on the beanie, I can make 1 in an hour. I decided to charge about $10 an hour for wholesale.
3. Minimum Order Quantity
Decide how many will be the minimum product you will make of each color and size. If I know that 1 skein of yarn makes 2 adult hats then my minimum order quantity of that color needs to be at least 2, that way I’m not wasting or sitting on yarn. I HIGHLY recommend that you agree on a minimum order or else you will be wasting your time.
4. Stay Organzied
Be sure you are keeping track of what they are ordering and what you have sold to them. DO NOT JUST ASSUME THEY ARE KEEPING TRACK. This is your job. I like to use Google Sheets. I lay out the colors across the top and the style/size on the side. Each order is separate from the previous ones. I keep it on the same sheet, but below the other.
Use the color name on the yarn label so you can easily reorder yarn. Your buyer may say the blue one but I Love This Yarn! has about 20 different blues. This relationship may last for years, and hopefully it does, so staying organized is important.
5. Create a Brand
Tag – I own the Crochet It Creations brand. I paid for a unique logo to be made and I hope when others see that logo they know it is me. Thebeamcity.com has beautiful laser etched product tags so I can add my logo to my product. Every item I sell has my product logo tag on it. If you do not have a logo, The Beam City allows you to create any kind of tag. You could even write “Handmade by …”. Tagging your items really sets you apart from others.
Label – I label each item with the size and yarn color on a white product tag that I purchased from Walmart. I found a similar one on Amazon, affiliate link. See photo below. I tie these with my business card around the product.
Business Cards – I found my business cards on Zazzle.com. I chose this site over Vista Print because I wanted to add my social media handles and didn’t see the format/icons I liked there. I like simple cards but Zazzle has many design options. Click the referral link HERE to get 25% off your first order.
Care Instructions – I use Avery 8160 1 x 2 5/8″ labels to add care instructions to my business cards. Avery.com makes it easy to create labels.
Now you have all of the tools you need to start selling your handmade work wholesale, or even get some tips for retail pricing!
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You may sell your items made from my patterns. Please do not use my photos as your own to sell your work. A link back to my site is much appreciated when selling your items from my patterns. I hope you enjoy!
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Thank you for this! Super helpful as I’ve just been approached about wholesale in a few shops. How do you handle the taxes for this? Do they pay taxes on your wholesale order and then they also tax the items in their shop?
When selling wholesale, taxes are not charged to the buyer. The buyer has the customer pay sales tax when a sale is made. Any income you earn will need to be claimed with income taxes. It gets confusing, always consult with a tax professional.
Thank you Jessica for always being so helpful. This is great info. I make a lot of your items and do tag your site. May you continue to be Blessed in all your endeavors!