Sunday, November 8, 2009

Wholesale Pricing of Blacksmithing Work?

How to Price Blacksmithing Work at Wholesale?

Pricing is always difficult and wholesale can be tricky. Unfortunately I can't give you step by step but only generalities.

Work as many irons at a time that you can. a gas forge is easier in this respect as you don't burn the steel.

Jig everything possible that you can. Shape of the hook cut off etc. This will also give you an uniform product which the stores like. Unfortunately makeing the jigs takes some time.

Negotiatiate with the stores for better advertising "Locally Hand Made by Traditional Blacksmith" so they can ask a higher price than usual so you can charge a bit more.

Negotiate with the stores to advertise you so you can get larger commission work from customers. Pay them a finders fee perhaps 10% and build this into the price you charge the customers. In this case deal directly with the customers and don't have the store as a middle man if you can help it. It will save you many headaches.

In short you have to work as efficiently as possible to keep your cost per unit down. If you can work in multiples as this streamlines the process. Eg. curl 6 hooks, bend 6 hooks, cut 6 hooks, start over.

If you find you are doing much production consider hiring a student at minimum wage to do the non cost effective work such as painting. At first this seems like a large expense but if you keep them busy it does actually pay.

I hope this helps. I have sold wholesale for years and you can make decent income with it and you usually have few problems getting paid which is good and if you have a good relationship with the stores they will work for you too.

There is more information on pricing on the main site in the members area under the articles.

David Robertson