What is the best way to start marketing handmade jewelry?
- Asked By: SandyK
- Category: Jewelry Marketing
I recently started making my own line of handmade jewelry out of Sterling Silver that I set with natural stones. I’m also experimenting with alternative metals and enamels. I recently got some local press (here in Chicago) and consistently get compliments on my work. I have a few of my pieces in local galleries and would like to branch out and start selling my designs on a larger basis.
I was wondering if I should pursue reps? Have you had any experience with sales representatives?
I recently started making my own line of handmade jewelry out of Sterling Silver that I set with natural stones. I’m also experimenting with alternative metals and enamels. I recently got some local press (here in Chicago) and consistently get compliments on my work. I have a few of my pieces in local galleries and would like to branch out and start selling my designs on a larger basis.
I was wondering if I should pursue reps? Have you had any experience with sales representatives?
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- John S Brana on What is the best way to start marketing handmade jewelry?
John S Brana
Posted 1 year ago
Hi Sandy,
Since you stated that you are just starting your handmade jewelry line, I’m assuming that you have put together a business plan? I would strongly recommend that you talk to a business counselor before spending any money on marketing, especially pursuing sales reps. I would touch base with your local SCORE office http://www.score.org and get their advice, which is FREE.
The San Francisco branch was a great resource to me when I first started back in 2003. At that time, SCORE had a counselor that specialized in the wholesale jewelry business, and his knowledge was invaluable. The counselor at SCORE will most likely ask you to write up a business plan, which forces you to flush out all the details and costs of starting your handmade jewelry business. Your business plan should define your market, price points, and distribution along with your business and tax structure ( sole proprietor, LLC, or S Corp). Also, make sure you get appropriate city, county, and state licenses if any are need where you live.
A sound business plan is essential, especially in our line of work. You really need to understand what you are up against and whether or not this new venture will be profitable in the long run. Just because a few friends love your work doesn’t necessarily mean that your line is marketable. Not only is the competition fierce and endless, the jewelry business is extremely cyclical and dependent upon the fickleness of the consumer. Just remember…no one NEEDS jewelry.
Assuming you have a viable business plan that includes wholesaling, let’s get back to your question regarding reps. First off, reps are not a cure-all for sales. Don’t think that having a rep means you no longer have to worry about how the bills get paid. I wish it were that simple, but it’s not. A rep should only be a small part of your sales funnel that augments your other revenue streams. Don’t approach reps until after you’ve developed a press kit, line sheets, branding, and have tested your designs for salability.
Most reps will only entertain taking on new clients that fit with their existing book of business – price points and style of how your jewelry fits in with other jewelry, clothes, and accessory lines they represent … so use your time wisely and do your research upfront. Also, most reps will only work with jewelry designers that have production. Remember that they earn their living on commission. No product, no commission. One-of-a-kinds and limited production is not what they’re after. If this is your business model, you are better off repping your own line (trust me).
Reps can work on a strict commission (off of wholesale), a combination of draw (monthly retainer) + commission, or a flat monthly fee (showrooms). Typical commissions can range anywhere from 10-18% on lower-end costume/fashion jewelry, to 8-11% on fine jewelry. Showroom fees can range from $600+ a month to several thousand a month. More experienced reps with 15+ years of experience will probably cost you a little more, but the results will show. They have an established clientele that is ready to buy. Stay away from the greenhorns…and ask and check references, especially past clients. If I rep has had significant client turnover, say above 20% over the past year, run…and run fast.
In the 9 years that I’ve been in business, I’ve used a combination of reps and rep showrooms that were either strictly commission based, a combo of commission/draw, or in the case of showrooms, a monthly flat fee. Due to poor performance and endless headaches with both reps and retailers, I’ve pulled out of the wholesale business two years ago. Handmade jewelry does not lend itself well to the traditional wholesale rep model. No one knows your jewelry line better than you! Do your own repping. Good luck!
John