Trappeur Posted June 30, 2015 Share Posted June 30, 2015 For those who sell wholesale to shops like I do I'm stuck on this little delema. Well, it really isn't a delema, but I know I could get more wholesale accounts in stores in the area where I live. Actually one store contacted me a couple of days ago and I had to turn her down because I already sell to a shop of which I gave her an exclusive for this town. I'm an honest person and when I give my word, my word is my word. This shop that I sell to is a real beautiful shop in town of which I delivered my first order of 5 dozen candles 2 months ago. Her first reorder I got was 2 dozen more candles 2 weeks ago of which I already made and delivered to her. So in 2 months of the 60 candles I delivered she has sold 30. Now I know that is not that much, but it's ok. She is happy and I'm happy and sometimes something new takes a while to catch on and for people to know that this store now carries candles..And she is a lovely lovely lady, pays upon delivery and even the first time I received 1/2 deposit up front. We really have a beautiful business relationship. She asked me for an exclusive on my first meeting meaning that I wouldn't sell to anyone else downtown which I said I would honor. Well, the thing here is I guess I'm asking for the future is I need to set some standard rules as far as what an exclusive should encompass. Like should there be a radius in miles of where I am able to sell? Also in an exclusive, what should that mean in $$$$ from the store? Should they be ordering every month and should it be a certain amount in $$$$ in reorders? Nowadays pretty much every store you go into has some kind of candle line, lets face it. I would like to be able to sell in the same area if possible but what I would tell the present store I'm selling to I will not offer the same jar to someone else and not the same label either so it doesn't look like my candle down the road a bit from them. Geesh, if a store approaches me, I would like to be able to say yes, I can sell to them, but a completely different look. They are going to order from someone else, so why can't it be me? You know what I mean? Well, I really can't do much of anything for myself with selling to more shops because I'm locked in with this one shop and I'm not a devious person who will sneak and go around corners just to make a sale of another account. That would really p____ss off that store if she found out, and in the end she would find out eventually. But I never had intentions of doing something like that anyways, but I need to figure out something for the future on how to handle this situation because every account always does ask if I sell to anyone else in town. I think it is horrible that shops do copy one another and get the same exact lines into their store that another store 3 doors down has...When I had my shop, that was a biggy for me and I always asked who else they were selling to in town, and if they were, I wouldn't buy from them. And yes, there were many reps I dealt with who said that they would give me an exclusive only to find out that later they didn't keep their promise and decided to sell to anyone just to bring in the bucks. I always wanted to be different from the next person. That's what makes each store so specail. But nowadays it's a dog eat dog world today... So my question is how do others here handle this situation? Trappeur Quote Link to comment Share on other sites More sharing options...
cindym Posted June 30, 2015 Share Posted June 30, 2015 My first question is , are your candles the only candles she sells??? What is going to stop her from selling another line?? Is she only selling home fragrance products from your line. I never gave and exclusive, of course I used my head, I didn't sell to two stores across the street from each other, but in the same town, yes. It never seemed to cause a problem for me or the stores I sold to. Why is it that she wants an exclusive? I had two very high volume seasons, beginning of summer and fall and holiday time. I made 60 percent of my sales or better in those two seasons so for me, the more orders the better and they were always big. My question to you is, are you afraid that if you don't offer an exclusive you will lose the account. It just doesn't seem justified, she just is not selling enough to ask you to put the success and finances of your business in one basket. 4 Quote Link to comment Share on other sites More sharing options...
Trappeur Posted June 30, 2015 Author Share Posted June 30, 2015 (edited) In answer to your question Cindy, no there are no other candle lines in the shop. No, I take that back. There are a few remaining candles of a line she did carry that didn't sell so she is not ordering anymore from anyone but me......... I didn't offer her an exclusive. She asked me for it and I said yes. No I'm not afraid that I will lose the account if I didn't offer it to her. Actually I never really thought about it till she asked me. I also private labeled the line with her store name on it. I know I should have thought about this more carefully in the beginning. The reason she asked for an exclusive is so that no one else would sell the same product down from her. So you more understand it, the town here is an upscale little historical town that has the train running every day that starts in this town and goes to Tennessee with tourists of which the train stops in the other town and lets the people off for a couple of hours to shop and then comes back here. It's a big tourist attraction. All the shops here are on a very long one way street all close to one another the shops. I will say that I am asked every time who I sell to as they all want the protection of offering a product that no one else has. And yes, you are correct in saying that she doesn't sell enough to warrant an exclusive, but it's kinda late for me now. Trappeur Edited June 30, 2015 by Trappeur Quote Link to comment Share on other sites More sharing options...
Candybee Posted June 30, 2015 Share Posted June 30, 2015 (edited) Which candles does she buy from you? Did you give her an exclusive to all your candles? The way I handle it is to offer a different line of candles to the other shop. That way they don't carry the same product and don't compete with each other. For example; in one town shop #1 sells my bath soap, shop #2 sells my castile soap. In my home town shop #1 sells my aromatherapy and incense candles, while shop #2 sells my florals and bakery candles. This works out for me and them and I get some good orders. Edited June 30, 2015 by Candybee 3 Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted June 30, 2015 Share Posted June 30, 2015 I have given this some thought. I think you need to go back in and speak to the shop owner and simply explain the situation. As I see it, you want the opportunity to make more money but you've given her your word that you wouldn't sell to another store in town. That is really limiting your business and you need to change it. I would try negotiating with her on limits to her exclusivity. For example, I won't sell anyone else your 2 best selling fragrances, and the other lines I sell will also be private label with a different jar. Any other fragrances are fair game, although you will rename them. Maybe she gets first shot on all new fragrances you find... but if she says no, then those fragrances are fair game. If you try to appease her and show that you are willing to compromise but not back down, then it's her choice. In a negotiation, you want to offer a few concessions and be firm on others. Know what you want to be firm on, and make some offers on things you can work with. Be clear about your position. You want to tell her that you truly value you her as a customer and can see your candles doing well in her store for years - but you can't limit the growth of your company. Also explain to her that just because you personally don't make candles for the other stores right now, that there are countless other candle makers who have access to exactly what she is buying from you. If she agrees to your conditions, she in effect is exercising some control over what the other stores might buy if they are inclined to buy locally. If one of those stores decided to buy from me (for example) I can make exactly the same candle in the same fragrance, with the same name. No, I wouldn't do that, but the point is that I could because I don't have an agreement with her. Quote Link to comment Share on other sites More sharing options...
TallTayl Posted June 30, 2015 Share Posted June 30, 2015 Do you have a review period in your WS agreement? I generally have at least a yearly evaluation to see if the account is a good fit. Exclusives do no good without a whole lot of volume. You both need to make money to stay in business i would open a dialog with her to hammer out a few specifics. As a couple noted above, her current exclusives can be for scent, name, style, type, or any combo. She can have an exclusive on names, styles, etc., but why would you want to limit your income potential within your local market? You have loads of skill to develop lines that suit many different shops. This is also where private label comes in handy. They have an exclusive on their label, but you are free to sell other PL anywhere you please. 2 Quote Link to comment Share on other sites More sharing options...
kandlekrazy Posted July 1, 2015 Share Posted July 1, 2015 For smaller towns or high end stores, I would offer a "private label" but not an exclusive. You really need a high volume account to go exclusive and even then I would set a low mile radius so you can sell in neighboringtowns or the same town if it's a large one. 2 Quote Link to comment Share on other sites More sharing options...
Vernie1 Posted July 1, 2015 Share Posted July 1, 2015 This is some great advice given. I was asked the same thing at one time and I struggled with it because I felt they were limiting my earning potential. No, I wouldn't sell the same product next door but I feel I should be able to sell in the same town. 1 Quote Link to comment Share on other sites More sharing options...
Trappeur Posted July 3, 2015 Author Share Posted July 3, 2015 (edited) Great advice from everyone....thankyou! For right now with this one store, as soon as I can get up the nerve to tell her in the right words that I can't offer an exclusive of my candles for the downtown area I will talk to her...lol. I don't want her to get upset and accuse me of not going with my word, but I need to have a heart to heart with her and she is the kind of person who I know will understand. To tie up my candle business with one store that really doesn't have the $$$$ amount for an exclusitivity gets me no where. What I will do right now for all future orders anywhere, there won't be any exclusives. Plain and simple... I will offer as far as an exclusive a private label which 99% of my candles are done like that anyway. And too, everyone will get their own style jar and lid. I'll change the names if I have to. For example the apple orchard account that I just got and am delivering today is in the same town here, but it is not downtown, but outside of the downtown area only a couple of miles. But what I did for them was their own jar and own label and even did rename some of the fragrances. I did tell the store downtown what I did and told her that Apple House was far enough away with their own look and I didn't think it would conflict, which it doesn't. The first thing she asked as soon as I told her that I sold them was did I do a different label and jar? Which I did. The only way I could do an exclusive for someone is for them to order a couple thousand dollars every month.....I think....lol..Not a reorder of just 24 jars on the first order. Hey Puma! I sure could have used a melter like you just got when I did the apple orchard account! lol Trappeur Edited July 3, 2015 by Trappeur Quote Link to comment Share on other sites More sharing options...
puma52 Posted July 3, 2015 Share Posted July 3, 2015 (edited) Trappeur, You are such a sweet person! I am sure that your account would understand. You are in a spot that you need to get out of because you NEED to be able to sell to other accounts....because your product is AWESOME and MORE money in your pocket is GOOD! The fact that you have made different labels and used different jars for each account should help her to understand and accept this much easier. Hey, as far as the melter....I can see with all of these accounts you are accumulating, you will have one of those puppies sitting in your "candle cave" very soon. You will love it girl! And if we lived close enough....I would be happy to let you use mine! How far away are you from Sevierville anyhow? You, me and Oldglory could have a big ole candle making day! I think you just wrote your best heart to heart opening statement: I don't want her to get upset and accuse me of not going with my word, but I need to have a heart to heart with her and she is the kind of person who I know will understand. To tie up my candle business with one store that really doesn't have the $$$$ amount for an exclusitivity gets me no where. Edited July 3, 2015 by puma52 1 Quote Link to comment Share on other sites More sharing options...
Candybee Posted July 3, 2015 Share Posted July 3, 2015 I feel your pain Trappeur. I hate going in after the fact and having to renegotiate with the vendor. It takes some finesse and assertiveness skills I am sure you have so you should be okay. I've been in that spot before and what helped me was making all my decisions beforehand and writing them down. That way when I went in I was crystal clear on exactly what points I wanted to be firm with and which I could be flexible with. It also helps to prepare some written materials you can give the vendor too. I have used various documents that contain my terms on sales slips/receipts, wholesale flyers, contracts, etc. Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted July 3, 2015 Share Posted July 3, 2015 This client is ONLY looking out for herself. You have to look out for yourself. This isn't the first time your client has dealt with adversity and it's not the last mistake you'll make. It's how we handle situations like this that makes or breaks us. Quote Link to comment Share on other sites More sharing options...
Candybee Posted July 5, 2015 Share Posted July 5, 2015 Me... I am a goof sometimes and tend to make my mistakes first then learn from them. On the other hand, I can't tell how many mistakes I've made that have helped shape and improve the way I now deal with my wholesale clients. 1 Quote Link to comment Share on other sites More sharing options...
Trappeur Posted July 7, 2015 Author Share Posted July 7, 2015 Yep, I've made some blunders, believe me and just have to learn by my mistakes. This is just one of them. But all is good and it will work out, somehow, some way. I'll let you all know what transpires as soon as I get the guts to speak to her. lol I'm not good at this part... That sounds like a plan Puma, a candle making day! We would have fun.....that's for sure! I'm pretty sure I'm going to go to the convention and I get to meet everyone Trappeur 1 Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted July 7, 2015 Share Posted July 7, 2015 I've been in a business setting for the better part of 40 years, thru countless company specific management training programs, and still most of the policies I put in place for my own business came as a result of learning the hard way. The problems that cost you something (money, pride, time, etc) - those are meaningful, those you remember. You're in good company Quote Link to comment Share on other sites More sharing options...
Candybee Posted July 7, 2015 Share Posted July 7, 2015 The problems that cost you something (money, pride, time, etc) - those are meaningful, those you remember. You're in good company Amen to that! Nothing teaches you faster than a direct hit to the pocketbook! LOL Quote Link to comment Share on other sites More sharing options...
Trappeur Posted August 25, 2015 Author Share Posted August 25, 2015 Amen to that! Nothing teaches you faster than a direct hit to the pocketbook! LOLSomehow I missed this post....lol ...you got that right! Trappeur Quote Link to comment Share on other sites More sharing options...
David Fields Posted August 25, 2015 Share Posted August 25, 2015 We have over 200 wholesale accounts, and this question comes up A LOT. Here's what we tell folks, and it works for us. We tell them that exclusivity depends on the size of the town/city, the dollar amount the customer orders on average per month, the location of the store in the city. Plus, exclusivity can be temporary if conditions change. We don't accept another account in the same city if sales are really good ($1000 or more on average per month) and the sales stay that way. We will accept another account if the customer's sales are in the 100-200/month range. We tell the old customer why. We would rather have two accounts in a city averaging $100-200/month rather than one. We keep the turn-downs on file and contact them if the current account drops in sales for a couple of months. Finally, we explain to everyone where this a question/problem that they can carry our products or not, their choice. We don't have a voice in their business decisions. We are all trying to maximize profits. That seems to mollify everyone. HTH 1 Quote Link to comment Share on other sites More sharing options...
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