Expert: - 5/24/2010

Question
Hi Jane!  I just had a couple questions for you.  I have been making and selling fabricated silver jewelry on a small scale for 3 years.  I do everything myself right now but I'm thinking of having some stuff made for me.  I love the creative side and I love making something new, but I'm getting really tired of making the same thing over and over again.  I feel that in order to expand my business I would need some help in that area.  I'm wondering how to find a manufacturer.  I'm also considering hiring a jewelry rep.  What's the best way to find one?  Thank you for your time!  -Kendra

Answer
Hi Kendra,

As a designer it's so important to continually come up with new ideas and if you're doing everything yourself and growing your business time becomes a real factor. I tell this to people all the time, the only way you can grow a business is by delegating. My rule of thumb is do what you do best and delegate the rest. This is how I grew my business from scratch to nearly $5M.

I loved the design and creative part and soon found the only way to grow was to hire manufacturers to produce the orders.

From your question, I am assume that you are selling wholesale and therefore taking orders for future deliveries rather than creating inventory and selling from the inventory.

Finding a manufacturer is one thing, working with one is another. It might be logical to think you can give a manufacturer a sample and have them duplicate it, unfortunately it's not the case. It's actually pretty amazing how your design might be interpreted. So it is best to be well prepared to work with a contractor by creating specification sheets, a bill of materials and making sure you have a contract explicitly detailing who provides raw materials, your tolerance for quality etc. There are many factors to consider in working with a contractor. You also must sign off on a counter sample prior to allowing them to go into full production. Inspect what you expect!

In looking for a manufacturer I am not certain if you are looking for domestic or off-shore. If you are just starting out and only need a few pieces at a time I would look for someone domestically who can fill your orders. Price per unit will be a factor, so this is something that will need to be negotiated. Most contractors have minimums per style and the more units you order the better the price per unit. In searching for a small manufacturer in your niche, I would start by looking a trade shows for other small manufacturers; consider contracting with other companies; searching online for artisans. You must however make sure your manufacturer is reputable, have them sign a non-compete agreement so they do not produce your designs for their own use and make sure everything is in writing. Doing your due diligence in advance is mandatory. When I first started manufacturing I actually started my own small factory in house, and this may be something you want to consider.

Working off-shore is another consideration. Usually the quantities are larger, sometimes not. But you will also need to have counter samples prior to production and create all of the necessary specification sheets etc. If you are new at manufacturing off shore it is advisable to hire a broker to assist you. It is a more complicated process and too long to answer here.

Hiring a rep is an excellent idea. I would attend trade shows to search out reps that would be compatible with your products. You can also get into showrooms looking for a potential sales rep. I also would ask some of your current retail accounts for recommendations - they usually have their favorites and if they already like your products they will make recommendations. Depending on who your target market / target retail stores are you'll want to find a good fit.

Always meet with a potential rep in person and always have a written agreement covering things such as: when commission is to be paid; what the commission rate is; who pays for samples etc. You do not want to leave anything to chance. You also must supply a rep with professional marketing materials - line sheets, price sheets and other catalogs or photos.

I hope this is useful information for you to get you started with expanding your business. I would recommend you sign up for my free report and newsletter for more information.

Best of luck to you!

Jane Button
http://design2marketsuccess.com