Is wholesale the way to go in terms of making any kind of small profit in this biz?

[JMT]

So this store offered me a 60/40 consignment deal better than 50/50 right?

I know.. I know....it's a little low but it get's me in a store. I need to get my candles "out there" so I will bite the bullet here. They are nice folk, so I don' think it will be a bad time.

I wanted to you guys a ?.

They don't want me to put my contact info on my candles for obviouse reasons. But they also said that if I get hits on my web-site they would want me to reroute them to the store to buy my candles and not from me direct? Is this how it goes?

If I start up a website and get orders why should this store get the profit? And what if I am in a few more stores? Do I tell all my e-commerce traffic to bypass me all the time to contact the retail stores my candles are at?

Would you say that you make any kind of small profit from wholesale accounts and not so much getting retail price on your website or having a booth or your own store? It seems that's how one makes any kind of extra income from candles is from wholesale accounts.

[chris77]

Hi JMT. Your candle business is your candle business...which makes your website your website. If they don't want any of your contact info on the candles, then maybe consider not consignment, but having them buy the candles from you wholesale and maybe they'll pay a small fee to make custom labels...kind of a private label account. That way people that buy from them will only know to go to them for that candle. Any one that happens upon your website or goes because of word of mouth from friends, family, and from a candle they bought from you is your sale down to the penny! No one else should get credit for your sales other than you.

Best of luck to you!

Chris

[Trish]

I've said it before and I'll keep saying it...

I HATE CONSIGNMENT!!

And I would NEVER give someone 40%. I realize the point of getting your products in a store, but the store is the one with the benefit here and not you. If they want that much commission, then they can buy wholesale.

This is your money tied up in inventory sitting in someone's store until the items sell. They have nothing to lose, they won't push to sell the items since it costs them nothing to have it there.

I remove my phone number and website from my main label and on the warning label I put "handpoured especially for ABC Company by Alluring-Aromas.com". I've never had an account ask me to remove that from my warning labels.

Tell them you need to have some type of company info on the product for liability reasons.

I personally hope that repeat customers will return to the stores to buy more, and not from me. This makes my stores in turn buy more and continue their business with me.

JMO!

[cindym]

That is an unbelievable request. Their business with you and your business with anyone else is separate. If they want to do private label then there is no way I would do consignment with them. I had one consignment account when I first started, thinking the same as you, I had to get my candles out there. In the meantime I was pounding the pavement and got myself 3 wholesale accounts in the month they had my candles, they did not sell one candle. If they have no investment they will not push the product. IMHO I would offer these people wholesale, if they don't go for it so be it. The whole idea of you wanting to get the account is for product recognition, you are not going to accomplish that if they don't want your name on the product. JMO

[LoveOfTarts]

Tell them you will do what they want for an hourly wage, paid holidays and vacation, 401K, and health benefits.

[cindym]

Tell them you will do what they want for an hourly wage, paid holidays and vacation, 401K, and health benefits.

Now this is a sensational idea. LOL I mean really what they are asking is ridiculous.

[Janette]

I agree with all above. Just about anyone will take your candles for free (consignment). I'm not entirely against consignment, but this offer seems a poor one at best. JMTC.

Janette

[Lorrie]

So this store offered me a 60/40 consignment deal better than 50/50 right?

I know.. I know....it's a little low but it get's me in a store. I need to get my candles "out there" so I will bite the bullet here. They are nice folk, so I don' think it will be a bad time.

I have one accounts that are consignment. She only takes 10% and there is no rent and this store sells alot of products. She is happy and I am happy so no big deal. But I honestly don't think I would give them more than 30% of the sale.

But they also said that if I get hits on my web-site they would want me to reroute them to the store to buy my candles and not from me direct? Is this how it goes?

Now, I have a huge problem with this. You realise that if you were to do this that you wouldn't ever make any money retial or even possibly get any more wholesale accounts because everything would be directed to the store. This store almost sounds like a smaller version of Walmart!

If I start up a website and get orders why should this store get the profit? And what if I am in a few more stores? Do I tell all my e-commerce traffic to bypass me all the time to contact the retail stores my candles are at?

See above. Plus, if you put your store link in your signature all the possible sales would be directed to the store! But you could put a page that tells where to purchase your products and list the stores and such.

Would you say that you make any kind of small profit from wholesale accounts and not so much getting retail price on your website or having a booth or your own store? It seems that's how one makes any kind of extra income from candles is from wholesale accounts.

I make some money on my wholesale accounts but I actually prefer to sell my products my self. I love to interact with people-(At least this week I do) but I definily make more money retail. Through my website, shows, home shows, repeat orders, and my cousins salon. (She doesn't charge me any rent or commisions)

I think if you are serious about this you should work on your terms not theirs! Good Luck in what you choose but I really think that you should rethink this.