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Not sure how to approach this request.


doglvr

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I had a local shop send me a facebook message that they were interested in gift items after someone told them about my tarts. I wrote them back and gave them my facebook page to look at as my website is under construction at the moment. I didn't think I'd hear back so quickly, but within hours they sent me a message "We want to talk to you! Please give us a call and we can work out taking your products on consignment or purchase them outright." Outright is better, right? This is new to me. So new in fact, that I don't have any kind of a license to sell to a shop yet. What would I need to accomplish this?

I had planned on going sole proprietorship and I don't think I need a federal ID, but do I need state or a city license? This is an area I haven't explored yet. I can do searches, but since this happened so fast I was hoping someone could give me some quick advice to get the ball rolling like ASAP.

To stall and not lose their interest, I thought I would go see them and take a melter and samples they can try in their shop to generate their interest and willingness to wait until I can get all of this in order. Is that a good idea?

Shaking in my boots here! Thank you,

Jackie

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You need a least a state sales tax license only a few states do not require them. City business licenses some require them some do not. You customer does not need to see you tax stuff but you need to see theirs. You need to keep a copy of their tax license or their tax number on file as you do not collect taxes from them.

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Would I call the local chamber of commerce to find out or the county something? I am wondering also, should labels I take in on packages have my website address? It isn't finished, but will be soon. I'm just wondering what businesses think about that. If the website is on there people can go to it and see things would be cheaper to order online than with the markup from a business selling your products. Of course, people can do that anyway - I would, but how is this handled when a second party sells your product? Just want to redo labels if necessary before I take them anything if that is the case.

Thanks so much!

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Your state's official website should have info on business licenses, taxes, permits ...etc. You can also check with your county & borough websites for more info on what they require for small business. As far as the labels go, I have a shop that I am on consignment with and they ask that I don't add any of my info on the labels and the other shops want to me add my info to labels. I have my business name, city & state and a phone number on the label. I'd add a website address on it too but the long URL doesn't fit on the labels I use. I always tell the owner what is on my labels so they know the product will contain my information.

Good Luck!

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To register your business and for Sale Tax ID go to your state's web site.

Then your county's web site, I had to register my business name with the court, I had to apply for a home business permit, some cities also require a vending license.

Or you can go to Legal Zoom pay a little extra and they'll tell you what you need depending where you live.

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Sounds like I need to get busy. I had planned on doing all of this, not just at the moment. I will go ahead and meet with them next week, but I'm not keen on consignment simply because of time restraints with my job, helping my elderly mother, etc. I feel like if I take them a melter and samples, they should know in time if they want to make a purchase or not. I think I need to look at it like why, just because I'm local, should I be treated differently than any other vendor they do business with? They don't take anything else or much else on consignment if anything, I'm sure just from looking at the products they sell.

Thanks everyone for all the help, sure appreciate it!

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Guest OldGlory

Just my 2 cents here -

Sell them wholesale. If you choose to do a consignment deal, they are always YOUR property until they sell. If they are stolen, it is your loss. If it gets damaged, it is your loss.

Have everything written down - what your minimums per fragrance are, what your minimum total order is, what your return policy is, how long it will take to make the order and either ship or deliver, how many times per month you will deliver. Always get the order in writing (I get mine thru email). Make sure you know who does the labels and what goes on them. If they are selling tart warmers, make sure your wax will melt in them. Make sure they understand the terms - do they pay on delivery? And what happens if they place this big order, you show up for delivery and they say "Gosh, I just don't have the money, but please leave the tarts and I'll send you a check." Ummm, NO! Be ready for anything! Check with the Better Business Bureau in your town to see if that business has any complaints against them. Good luck!

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Guest OldGlory

thank you, but as the song says, 'it's wisdom full of pain'! I can't tell you how many times and how many ways I've been burned. There are some great customers out there, but there are plenty of customers who just want to take advantage of you. If my experience can help then I am glad to give you some of my perspective.

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I've got my samples box all ready to go along with my scent list and descriptions and a typed letter thanking them for their interest (in case the owner isn't there) and I specifically said in it that should they be interested we can talk about a wholesale purchase at that time indicating I will not be interested in anything consignment. I need to let some cure I just made today so I won't be dropping it off until the end of next week. Thanks everyone for the GREAT advice!

Jackie

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