It's been a while, it seems like, since I wrote about anything business related that wasn't a sale or talk about an upcoming show. I have a lot going on right now and a lot to figure out, which makes it hard to know exactly what I should share and what I shouldn't. So, I'm just going to jump in. Those who know me personally know that I leave very little unsaid and I guess this blog is only a little different....so here it goes.
How it all started
As you may know from my posts in January, my line was picked up by sales reps from the Dallas and Atlanta markets. Wow...exciting right? Glamorous, right? No, in reality it is expensive, a lot of hard work, time consuming, and up to this point completely free of any reward of any kind. Yes, that includes monetary reward. Turns out I made a mistake. A big one. One that has cost me a lot of money and a lot of time. This is basically how it went down:
For two months at the end of 2008, I contacted every sales rep in the southeast that I could find contact information on. I received rejection after rejection, stating that they were already carrying too many lines or were not accepting new lines at this time. So, you can imagine my excitement when I got a YES! I was thrilled. I really thought back then - a whole six months ago - that getting a rep was a major accomplishment...that it meant you had "made it". Boy, was I wrong. From my experience hiring a rep is basically the same as hiring a gardener or a housekeeper. If they have time for you, they'll work for you. But you'll pay. Oh, you'll pay.
After being with my first rep for almost a month, she referred me to my Atlanta rep who accepted me as a new line on the spot. It was January....what a way to start off the year! If you go back and read my post you will understand my excitement. I really thought this was a great sign of great things to come for 2009.
Fall 2009 Collection
Where it got me
My Mistakes - I made them
Before you begin to think I'm completely bashing my reps, let me tell you this: I have made mistakes - big ones - that also effected my experience at market. My goal was to be there by Spring 2010 (which means January). I made my goal a year early, which I thought was fabulous until now. It was too soon. My reps tell me my price points are too high and that I need to lower my prices so I can get INTO the stores and then raise them when I actually start making sales. THAT, my friends, I cannot afford to do. I'm already barely breaking even on a wholesale sale after paying 12% commission. My line is too expensive to make to wholesale at rock bottom prices. It works for so many companies - even small ones like mine. I'm just not set up to work this way, apparently. I thought by now I'd be looking further into manufacturing, but I just can't find any companies (IN THE USA) that will manufacture on a small scale that I can afford. My sales just aren't high enough to justify making even 250 of a single design. Someday....maybe.Another Sign
Questioning Myself
This makes a million questions run through my head. Do I start making a less detailed, less expensive line that retailers can afford to buy? (BORING!) Ok, boring but it might work. But is that really what I want to do? I can't imagine myself making a hundred a-line dresses and enjoying it - if you'll notice I don't even offer basic alines. I'm leaving that up to someone else - there are only a million other companies that offer them. No offense, of course, it's just not my thing. Next questions: Should I leave the markets and sell on my own? I have established one account with a local boutique, I suppose I could do more. Do I even WANT to continue to wholesale? Do I have time to factor in selling as well as designing, sewing, paperwork, etc? I don't think so unless I change my line. Ok, so this brings me to my last idea.
Revelation
Lisa working my booth @ Cottontails
I really TRULY enjoyed Cottontails Village. It was a lot of work, but had the potential to be a great money maker if I had gone into it know what I know now. (Lots of lessons learned there too) Part of me thinks I really want to continue to do these large vendor shows and just carry a lot of inventory and sell online. No, I'm not talking about getting rich. I'm talking about making a living. I never went into this thinking I would get rich, because Lord knows - from what I've seen so far the profit margins are small! Trust me - I just finished my taxes.
Lisa working my booth @ Cottontails
So, there you have it. I kind of think I know what I want to do. I think going this route would allow me to be more creative instead of cranking out the same thing over and over (which I do not enjoy) I'd love your input - but not your hate mail of course. I'd also love to hear of any vendor shows you think I may like to participate in. anna (at) sweet-dreams-designs.net Email me!
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