Welcome to Let’s Talk Business, where Square business owners share their stories, the lessons they’ve learned, and their plans for the future.
Today we’re talking to Charlie Good (@HC_Charlie). He is the owner of Homestyle Charlie in Hershey, Pennsylvania, where he makes and sells handmade crafts, including stained glass ornaments and jewelry. He started the business by selling at craft fairs, art shows, and an Etsy shop. Then he opened his own retail store in 2019.
After five years, Charlie is in the process of closing down that brick-and-mortar store to reduce expenses and wholesaling his handmade items to other gift shops around the country. Charlie shares what went into that decision, what the process has been like, and the key things he learned about becoming a wholesaler. Follow Homestyle Charlie on Instagram.
Watch the 30-minute video interview and read some highlights from our conversation.
How did you make the decision that closing your retail location and switching to wholesale is the best option for your business?
"When I first opened the brick-and-mortar business, I was just selling my handmade items, and I very quickly figured out that I can’t produce enough to stock an entire retail store. So I started bringing in items made by other people — commercially made products, like greeting cards and gift items, and anything that would tie in. Without really intending to, I created an entire gift shop. When COVID hit, all of a sudden my one stream of revenue was shut off. It’s very scary, very disheartening, and it leads to a lot of questions for a small-business owner. That became a priority to expand online sales, which didn’t increase enough for me to feel comfortable. So I really started thinking about what else I can do to diversify my revenue streams. And wholesale rose to the top of the list. I learned about buying wholesale and wholesale resources that got me really interested in working on the wholesale side and supplying other gift shops with what I make."
How did you start to build up your wholesale business?
"I had one item that was really popular, so I had to learn how to make a lot of them. The more I made, the quicker and cheaper that I could make them, and the more I could sell. So I figured out this could be successful in the wholesale market. I learned about some great wholesale marketplace equivalents to things like eBay and Etsy. One is called Faire, with items produced by both large manufacturers and small independent craftspeople. I learned that I could join one of those as a producer, which led me to my first retail store account. After 18 months, I’m now in 125 other gift shops all across the country. It’s been an exciting journey and a learning experience, and I’m looking forward to continuing that. I’m not sure how far to set my sights, but I’m adding new retail stores every week. So as long as that’s growing, I’m considering it a success."
What has the process of closing your retail location been like?
"It’s been a roller coaster of mixed emotions. It’s bittersweet. You build a store from the ground up, and you spend five years devoted to it, decorating, remodeling. All of that takes a toll emotionally. I started thinking about closing the retail store probably over half a year ago. So everyday I would look around and think, “Someday soon things are going to change.” You do get to the point emotionally that you’re ready, and I am excited for the next chapter. But the biggest daunting next step is unloading an entire store of inventory and trying to recoup as much money in inventory by having a closing sale. I was really fearful for a long time, but it’s going a lot smoother than I anticipated."
What did you learn about how to become a supplier to others?
"It’s really important to take into account your profit margins, your costs of your supplies and your time, and what you want to be paid. If a store is buying your product, they’re going to mark it up, so you have to think about appropriate retail prices and what people are willing to pay for your products. If those numbers don’t add up, you’re probably not going to be as successful in wholesale. Maybe your expenses are too high, so can you get your supplies cheaper or make things faster? Wholesale isn’t for everybody. If you can’t make it, you can certainly sell direct-to-consumer as a retail seller."
Charlie also created a PDF guide to help you think about whether or not shifting to wholesale is a good idea for you and your business. Download your copy!
Watch: Let’s Talk Business with Charlie Good
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Aylon Pesso is the Square Small Business Evangelist, helping sellers run their businesses better. Based in the U.S., he is a former small-business owner, consultant, and Square seller.
This article is only for informational purposes. The information provided in this article solely reflects the speakers’ views and are not endorsed by Square. This article is limited in scope and is only intended as a high-level overview of the topics mentioned.