Wholesale and Tax Exempt

I was talking with a quilter yesterday who suggested I write about wholesale resources for professional machine quilters. I agreed it was a great idea for a post – and here it is.

About Wholesalers – Most, if not all, wholesalers require some proof that you are in a business and that you will be purchasing the bulk of the items for use in your business.  (Yes, you can get a few things “just for you” but you will need to talk to your tax person about how to track these items and how to document them on – and for – your taxes.) Each wholesaler will have their own requirements on what you will need to prove you are a business.  You need to follow the rules that are set up at each individual wholesalers.

Most wholesalers have minimum purchase requirements – again, you must follow their rules to purchase at their business.

When buying wholesale you need to purchase larger quantities of items. You will have to purchase a bolt (usually 15 yards) of fabric, not just one or two yards. You may have to purchase a box of thread (several spools/cones) instead of a single spool/cone. Items such as Fray Check and Sewer’s Aide, etc., come in boxes of 3 or 6 or more. You need to purchase the whole box, etc., etc. When it comes to batting, you have to buy a roll, sometimes 40 yards, or more!

When you purchase wholesale, the cost is significantly reduced from retail and most, if not all, wholesale purchases are exempt from state sales taxes.

The theory behind this is – when you sell the completed project, the state will collect MORE in sales tax than when you purchased the items from the wholesaler. (Note – I am not a CPA or tax person. This is my understanding and interpretation. Please correct me if I’m wrong.)

I am not getting into any discussion about what items need to have sales taxes charged, or if labor is taxable. These are questions you need to discuss with your CPA / tax person and you need to do what is right for your state, province, etc.

You will also be responsible for shipping charges to get your purchases delivered to you. Talk to the wholesaler when you place your order and they should be able to give you an approximate cost for the shipping. Note: Talk with the person who is taking your order – depending on the wholesaler, some items may not have any shipping charges if you order a minimum $ amount.

Tax Exempt – Let’s assume that you do purchase wholesale but you need only a single yard of fabric to put a binding on a customer’s quilt. You don’t want to get a whole bolt of fabric and you don’t want to wait for it to be delivered in a few days. You decide that you are going to purchase the fabric at the local quilt shop or big box fabric store (that starts with a “J”.)  Talk to the shop owner / manager and see if you can purchase the fabric/item tax exempt. You will have to pay the marked retail price, but you will not be charged sales tax for this purchase. The (increased) sales taxes will be collected when the project is completed.  Again, you will have to show proof that you are a business – the business documentation will be determined by the shop owner.

If the store you are shopping at has coupons, you can (usually) use the coupons with your tax exempt status. If you have any doubts, check with the store personnel before you checkout.

Purchasing fabrics / items wholesale or tax exempt is one of the good things about being a “legitimate” business.

Business Tip – I like to stock wide backing fabrics in my studio. These fabrics are purchased wholesale and sold to my customers at regular retail prices. I like to have a bolt of light, medium and dark fabric, sometimes a print but mostly marbled or texture fabrics, for this. It is amazing how much extra $$ you can earn by selling wide backing fabrics!

If you have a product or item that you really like to use, contact them directly to see if you can purchase wholesale directly from them. I am always amazed at the number of businesses who will do this. If they don’t, ask for the name of the wholesaler who does carry their products. You may learn of a new supplier.

I know of only a few wholesalers (the ones that I use the most), which I will list below. I know there are a LOT more, so please leave a comment with the name and contact information of any other wholesaler or your favorite  supplier. After a bit I’ll compile all the information and post it as a separate page.

E E Schenck
www.eeschenck.com
6000 N Cutter Circle
Portland, OR 97217
(800) 433-0722

 The Warm Company
www.warmcompany.com
Warm & Natural Batting
5529 186th Place SW
Lynnwood, Washington 98037
(425) 248-2424 or
Toll Free (800) 234-9276

I KNOW there are a lot more wholesalers and suppliers out there – let’s get them listed here for everyone to see.

 

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About Cindy Roth
Mother of 3, Grandmother of 11 and quilting forever!

9 Responses to Wholesale and Tax Exempt

  1. Sherry says:

    I recently checked with YLI at http://www.ylicorp.com/ and was sent the following for buying wholesale.

    We do sell wholesale; our requirements are as follows:
    we need 2 proofs of business;the 1st being the legal documentation showing you are a business, a copy of your business license will be fine;
    the 2nd item may be anything with your information, such as business card,letterhead,invoice from another co.,etc..when we receive these we will set you up as wholesale;all orders are $80.00 minimum and we accept mastercard or visa;
    please feel free to contact us if you have any other questions
    thank you
    vickie roberts ylivroberts@comporium.net

  2. Honey says:

    Wow Cindy! You are amazing. I just asked you that question, and like magic, you deliver on an answer. You always give good and helpful information. It was a pleasure talking with you on the phone.

  3. Carla Fiedler says:

    Thanks for sharing, everyone; this is an informative post and you taught me a lot.

  4. H Davis says:

    Quilters Dream Batting (http://www.quiltersdreambatting.com/) sells only to shops and small businesses not to the big box stores. Their prices are competitive with other batting manufacturers.

    They offer rolls and cut pieces in many sizes. You can buy a single piece if you wish but the shipping can be prohibitive on small orders.

    They ship in 3-5 business days from Virginia Beach, VA via UPS. A queen, 30 yd roll costs about $21 to ship to PA. The product is made somewhere in the south not VA so they might have other shipping points for folks in the south or west which would reduce shipping costs. I don’t have any information on that.

    You can get their wholesale price list by contacting them at quiltersdreambatting@juno.com or 1-888-268-8664 You will need a sales tax number or some other proof that you are really in business. I think they offer 30 day billing or pay by credit card. We were billed and paid by check.

    This is an all woman operation (Jane, Kathy, Neva, Jennifer, & Gina) and they do a good job of getting the orders out on time and answering e-mail inquiries. We done business with them for over 10 years and have had good results.

    For ANY batting supplier you’re considering. Notice where it will be shipped from. Shipping batting, especially rolls is expensive.

  5. Lyn Heilman says:

    Quilted Memories LLC
    7913 Santa Fe Dr
    Overland Park,Ks 66204
    913-649-2704
    http://www.quiltedmemoriesllc.com
    Wholesale pricing on Hobbs batting, wide back fabrics and thread

  6. Awesome article! Thanks for all the information. Superior Threads offers wholesale accounts as well.

    https://www.superiorthreads.com/

  7. Debbie says:

    Checkerdisk offers wholesale. Some thing will be in a lot,some individually. Yearly min purchase is 1200.00 to keep account open, first order is 350.00 and there after 150.00 without extra charges.

  8. Dot Younginer says:

    Textile Collections, Inc.
    1334 E, 16th St.
    Los Angeles, CA 90021
    email: http://www.fabric4less.com

    (don’t have a phone number….)

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