MY 2 cents would be, don't respond with a "no". When they asked you to raise their prices they are not really trying to bully you into running your business their way (usually), they are simply voicing a concern (people will go into their store smell your candles, like them, then pull out their iphone and find it on your website cheaper). If you don't want to raise your prices, but still want this account you should respond with a counter request that addresses their concern (if you say no either the conversation ends and the deal stops or they bite the bullet and agree. If you give another offer then they have the chance to say sure, no, or give a further offer). From what it sounds like they are being reasonable, giving you prime placement in their store, offering to make you the exclusive soap and candle line in their store and so on, I'll be willing to bet they'd consider other options. Offer to make an exclusive line for their company you can change the colors scents and packaging, still prominently feature your brand but include "exclusively at [store name]" Or ask for a minimum - let them know if you raise your prices you risk losing current customers, you're willing to do that but only if they commit to buy x amount from you each month for the next 12 months to limit your risk. If you get creative you can usually find a solution that works for both companies and hopefully builds a lasting and profitable relationship. Good Luck, Josh