Jun 27, 2017
Episode 164- Best of Featuring Dustin Revere and Bonus
Best of Pros and Cons of selling to a distributor
Correction
GROSS=total revenue
NET =total
revenue - cost to
manufacture
Profit =
NET- Misc Expenses
Finding Healing and Center with
Glassblowing featuring Dustin Revere
Dustin is a wealth of knowledge who has soaked it up from some
of the greatest flameworkers in the world. As an artists Dustin has
put himself in position to build relationships and gain exposure
from artists whom have hundredrs of years of lineage in their
families of glass artists. Learning techniques from artists
such as Giani Toso http://www.giannitoso.com/, Cesare
Toffolo, http://www.toffolo.com/en/, Lucio
Bubacco http://www.luciobubacco.com/,
Robert Mickelsen http://www.mickelsenstudios.com/ and
many more.
Dustin has taken this knowledge and
created his own version of techniques which has now captivated and
taught thousands of aspiring glass artists around the world.
Between his Revere school of glass, youtube videos https://www.youtube.com/user/revereglass and
facebook posts https://www.facebook.com/revereglass/,
Dustin is always pushing himself to find and share tchniques with
an audeince who is constantly hungry for more.
__________________________________________
This is the first in a series of 5 episodes covering the
different areas of selling and pricing your work. The goal
with this series is to discuss and help you find ways to sell your
art, create consistent revenue, and build relationships
with the outlets you sell your art through. Whether distributor or
retailer.
Today we are diving head first into selling to a distributor.
I personally sell my work through 2-distributors and
several retailers directly. The benefits of both allow for a
consistent income without putting all your eggs in one basket. On
one hand you have a catalog that has a broader reach of
distribution allowing more exposure for your line of work.
Most distributors take a 15-25% fee off
the top of the wholesale. If you sell an item for $10.00 wholesale
the distributor will then pay you $7.75 per item. If you calculate
your time and gas that it takes to drive around and hope to sell
orders it is way more beneficial to work with a distributor.
When you first start out I recommend starting
off selling to a select few shops and have then help you
find the right pricing based on their customers feedback. In the
long run you can then fine tune your line and become more
consistent which you can then approach the catalog
companies.
When you begin building relationships with distributors it is
important to know that you will need to mail off FREE samples
giving them a physical sample of your work. This allows them to
settle on pricing and then if they accept the item they have it for
photographing it for their catalog.
If you decide to go this route there are a few details to take
into consideration.
1. distribution companies tend to buy in bulk which means you
will need to be able to keep up with orders if your lines sell
well.
2. purchase materials in bulk which will save you a ton in
overhead. if you order 6 or more cases then frieght will be an
option to ship saving you tons of cash in the long run. Wait
till companies like mountain glass have a monthly sale on
clear or a color company.
whether you buy your material in bulk or single cases always
estimate your cost to manufacture based on regular pricing, not the
sale price as well as always include shipping in the cost of the
case. if you buy a case of 1" hvy wall and it costs 130.00 before
shipping then the actual cost will be around 165.00- then
devide that cost by the number of tubes in the case.
Below is a basic calculation you can use when figuring out
cost of manufacturing your items.
How to calculate cost of
production
In this example I'm using reference from internet which has
material price based on length .....
This is a generic example
example 3"-wrap and rake hand pipe
Material breakdown :
2" section of simax 25.4 hvy wall
($8.00/60")
$0.13per inch or $0.26(2"section)
1/2" section of color cobalt firsts
($5.25/18")
$0.15
9" section 4mm clear for raking
($0.52/60")
$0.09
Estimated total for cost
of Goods
3"wrap and take spoon
($0.26+$0.15+$0.09)=$0.50
Propane/oxygen/power is pennies on the dollar if you're able
to get liquid oxygen. If you are renting space you still need to
calculate your estimated per hour rate. If you pay
$1500.00/mo(power,rent,gas) break it down to per
day then estimate how many hours you work in a day and use that
number as a base calculation.
$1500.00/month (30-day
month) is
approx $50.00/day (per hour in a
10-hr day)
$5.00/hr (gases,power,rent)
If you can make 10-$5.00 3" wrap
spoons per hour your estimated cost per hour
is $10.00/hr
(power,rent,gas) $5.00+(material x's
10-hr) $5.00= $10.00/hr. to
manufacture 10-$5.00 spoons
Net-$50.00(10-$5.00 3" w/r)-$10.00(cost to
manufacture)=
Gross approx $40.00/hr.
In a 8 hr day do the math
You can see just by getting a good base line down for
estimating your cost to manufacture
you have the ability to make anywhere
from
$30-60.00/hr gross profit
Gross= income
Net =income-cost to manufacture
=profit
Now take 15% of your gross and put that aside for TAXES
!!!!
If anyone has questions feel free to contact
me info@wyzguyradio.com
GO TO WWW.WYZGUYMEDIA/RESOURCES FOR
A DOWNLOADABLE FILE TO FIND OUT WHAT YOUR BASELINE COST TO
MANUFACTURE YOUR PRODUCTS ACTUALLY IS.
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