Hi John1
Our Wholesale business (to the trade only) is in the field of CNC Routing, we do not wholesale prints, but your real question is “is it LESS of a pain to run wholesale Vs. Retail”.
We find that Wholesaling to other
sign shops falls into two categories. Those shops that know about Routing and those who do not have a clue (usually new businesses).
Our established
sign shop clients usually have some knowledge about the substrates we are able to route and the complexity of producing them. They see us as a way to make a profit without lifting a finger…that is, if they want us to route and completely finish (paint) the
sign for them. Some of our clients have us route the
sign and ship it raw, to be finished in their shop.
These clients are the easiest for us to deal with because they are knowledgeable
sign people. They appreciate the fact that they do not need to invest a great deal of money in a machine that might only be “busy” in their shop part of the time. After all, if they can have a wholesaler (me) route and finish a
sign for them and still make a few hundred dollars without doing a thing (other than selling the job) then that is all gravy for them.
Our clueless
sign clients are those who are just starting out and are looking for ways to be productive and get projects out the door so they can pay their electric bill. They may have knowledge about digital printing but CNC routing is foreign to them…not to mention how to design/layout a design that will “work” using a router.
We don’t mind these clients and are very willing to educate them because an educated
sign designer is more apt to make the sale than one who is not…which of course means more business for them and most importantly, for us.
As with both of these wholesale client “types”, they ALWAYS shop around for the best wholesale pricing…that is only natural. I must say our clueless clients are more apt to order from us because we invest a lot of time in educating them. The key to running a wholesale/retail shop (or any type of shop) is SERVICE!!!
When we do work for our retail clients (non-
sign shop people) that is another story. They live in the area we do business, and, can sometimes be a real pain. We did a
sign for one client and she swore that the background color we used was not the color she chose. We had to physically take the can of paint from the shelf, paint a swatch and compare it to the sample she provided us. Both her sample and our can of paint had the same mixing formula. Don’t get me wrong; we have more great clients than not so great. These clients are easy to work with and are open for suggestions.
When it comes to pricing, retail clients can be a pain because after all, the router does all the work for us, thus the price should be lower.
Sooooo, to answer your question, we find that we are able to get the project done faster with our wholesale clients because they are in tune with making
signs. We spend less time with them because we are both on the same page. We still make a profit (but not as much as with our retail clients) and it helps keep the router running. Wholesaling has been less headaches with less profits. The trade off is worth it to us for us.
As far as digital printing, color matching would be your largest hurdle. If you’ve got that down, I’d say to start locally at design firms. They are usually in need of a few production specialists.
Barry J
St. Louis, MO
Barry@SignsByUnique.com