Chuck,
I operate in a town of about 80,000 and have competition from four other engraving/awards shops. These shops are owned and operated by good people who have been content with their existing business level and have not embraced any new technology beyond the computerized mechanical engraver.
I have done some wholesale work for local shops, but I think their biggest fear is that I would end up stealing their customers. Anyone who knows me would know that that would never happen intentionally. It's happening anyway, but it's of their own acord.
Your business plan will really need to address the wholesale vs. retail marketing issue. While I think there is room for both in many of our operations, it needs to be well thought out.
A wholesale pricing structure can put drastic use requirements on your equipment. To sell at wholesale pricing you need to do volume. To do volume, you need to keep your machine(s) running. If your machine(s) is/are constantly running, how do you have time to take care of your retail customers and produce their items? This is the cycle you have to avoid.
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