Bulk order of 1100 luggage tags

[AlexLeather]

I've never sold in bulk before to any retailers. I work alone out of a spare bedroom and have no heavy machinery, cutting dies, etc. They asked if I do bulk pricing as they are interested in 1100 of my $35 luggage tags. This is my Etsy listing price.
I'd want to buy a leather sewing machine,  dies for the two pieces, a way to press the dies. And probably a way to neaten up the edges very quickly.

Does anyone have any advice for me?  Thanks.

[fredk]

I'd reckon they'd be looking about a 50% reduction

Your extra outlay would be (minimum): sewing machine $500, Press & dies $500, edger machine $300 = $1300. Or $1.20 per tag. You'll need to put that out first. If you have funds ready thats ok, but if you need to buy on credit (credit card, bank loan etc) factor at least another 20% = $260 = $1560 = $1.42 per tag just for the machinery.

Get a contract if you are going to have to make extra outlay. Get a forward payment that at least covers the cost of the new machinery.  To my error I often did not and ended up well out of pocket when the client pulled out of the deal

[Mark842]

Down payment to cover your costs up front. Can't tell you how many times I've been approached for bulk orders that never happened when they found out they actually had to make a down payment.

Edited July 1, 2019 by Mark842

[kgg]

I would ask for a 25 percent upfront down payment and they would get 275 tags in a mutually agreed time frame. If they agree and come through with that then get the equipment (sewing machine, thread, tag material, press, dies, edger, etc.).

kgg

[RockyAussie]

8 hours ago, AlexLeather said:

I've never sold in bulk before to any retailers. I work alone out of a spare bedroom and have no heavy machinery, cutting dies, etc. They asked if I do bulk pricing as they are interested in 1100 of my $35 luggage tags. This is my Etsy listing price.
I'd want to buy a leather sewing machine,  dies for the two pieces, a way to press the dies. And probably a way to neaten up the edges very quickly.

Does anyone have any advice for me?  Thanks.

As you have not done bulk manufacturing of this type and do not have the equipment I would recommend posting a picture of the product in order to get advise on the machinery types and advise as to how it can be done quickly. In order to keep the customer I would get someone with the equipment and expertise to do the job or many parts of the job and add in a percent to make it worth your while handling the job. Once you know how it all pans out then you can consider what parts you can take on with whatever equipment you then decide to get.   Here is one version that we make here in bulk and they require a lot more machinery than you mentioned.

[chrisash]

Much depends on the terms and conditions made by the company buying them, is there a time limit, what are their payment times,is it sale or return. As a small company we often think our T&C apply, but in reality its the demands from the large company that mean "take it or leave it, these are out terms"

You have a large startup cost and any machine failure could make a delay and lose you the contract

My first inclination would be to sub contract it out with you playing a large part on Quality Control and getting legal advice on making your contract with the sub contractor

You may well find the time limit makes it unobtainable and the expected price far lower than you think

[Lfrog]

As its an etsy sale, agree delivery terms and price with the buyer before accepting the order.

The buyer pays in full BEFORE you process the order, I have sold bulk deals on etsy, negotiate the price with the buyer before you spend any meaningful time on the order.
If you dont have the machinery to fulfill the order in a reasonable time frame then get it made for you.

Good luck, hope it all goes well

[chrisash]

Sorry to be so negative , but ask yourself why they have chosen you to make them rather than far cheaper sources in the far eastern countries, they may well be genuine companies and even UK based but just make sure everything is OK before you make any commitment 

[Sheilajeanne]

I think Mike has the best advice! Yes, be REALLY careful! As a one-person operation, you can't afford to be cheated on this.

[AlexLeather]

19 hours ago, RockyAussie said:

As you have not done bulk manufacturing of this type and do not have the equipment I would recommend posting a picture of the product in order to get advise on the machinery types and advise as to how it can be done quickly. In order to keep the customer I would get someone with the equipment and expertise to do the job or many parts of the job and add in a percent to make it worth your while handling the job. Once you know how it all pans out then you can consider what parts you can take on with whatever equipment you then decide to get.   Here is one version that we make here in bulk and they require a lot more machinery than you mentioned.

Here is the note, no mention of a sample tag, or any details.

" Hello,

Do you offer bulk pricing? I'm looking around for luggage tags for promotional use for the brand Harper Avenue (backpacks and cosmetic cases). We would need 1100.

Let me know if you are interested.

Best,
Leigha

Edited July 3, 2019 by Northmount
removed site url