Gordon, Kevin is far from a neophyte.
He already has a website, he is pretty sophisticated in his posting of videos, running a blog about his work, and answering questions online.
His dealer that he is complaining about is the largest, probably oldest, and most well known in the USA.
His problems are more in the line of it being a small, niche market- jewelry and metalsmithing in the USA is the province of schools and hobbyists- and its just not the same as a consumer product, or even one that is oriented towards modern industry.
His direct competition is very old, very expensive, companies, probably less than 3 or 4 worldwide.
They have higher prices than he does, they have bigger factories and machinery that was paid for decades ago, and do enough business to justify processes that he cannot- his main competition drop forges their stakes.
That requires forges, big hammers or presses, and a large investment in tooling- big upfront costs, which result in lower per piece prices down the road 50 years or so.
I have catalogs from the 1920's that have his competitors products in them, unchanged to this day. Probably forged on the same dies in the same press.
He is doing everything right- in terms of hitting the right market with the right product at the right price, being flexible and innovative. But its just not a big market, and its not one that will pay any price- its hobby types, and they have their limits.
I think if he revises his wholesale pricing and practices, he will end up okay.
As for Georg Jensen- that stuff is not exactly new to americans- the USA has been a large market for them for over 50 years, and the older stuff is highly collectible here. I have some friends who have quite a bit of it.
The US flatware manufacturing sector has been decimated in the last decade or so- I think there is only one sterling flatware manufacturer left standing in the whole country. The stamped chinese stainless stuff costs less than the shipping costs of US made products.
I know a guy, we used to share a rep, who has done very well living in India 3/4 time, and having all his manufacturing done there- he does high design, somewhat Jensen like stuff, modernized, and probably sources from 50 different companies in India, and sells in the states- but its not easy, the margins are slim, and it really only works because its a one man, labor of love type business, much like Kevins. It would not support a corporate structure, his brother in the US warehouses and drop ships to stores, and he coordinates manufacturing and designs in India. If he had a company like Jensen, he would have gone broke in a year, but he has been at it close to 20 years now, and is still plugging along.
MICHAEL ARAM OFFICIAL SITE
So a small, responsive company like Kevin's can work- assuming the owner puts in 110%. But for a mainstream, "thats the way we've always done it" type of manufacturer, its very hard to compete with the asians.
I used to make and wholesale a line of furniture, accessories, and home products, and I would get Pakistani guys come to my booth at trade shows, and offer to make my stuff for me for 1/3 of my wholesale price, if I bought a container full at a time, paid in advance, as you mentioned.
Not my interest- I prefer to be the captain of my own tiny rowboat.
But its very hard to compete with that.
I had several pieces knocked off by different offshore companies, and sold for a fraction of my price- I would just stop making the piece, and come up with something new...