cre8tivelegance Posted November 16, 2006 Share Posted November 16, 2006 Hi Everyone!I was approached yesterday by a friend who lives out of state. She has been bugging me for a long time to let her sell my candles up where she lives and yesterday, that is what our conversation was about.I am now considering it......I thought she could be my rep. She told me she would sell my candles through home parties and she would give the first one.........her sister has already agreed to book a party off of her......she's convinced this would take off like gangbusters.My problem is.......I'm not sure how to pay her or the host for hosting a party. At first I thought I'd pay her a 20% commission from total sales. And then I thought I'd have to give the hostess some incentive for having a party so I came up with a scale for the hostess: a certain amount of sale total would equal % discount off the purchase of candles up to a maximum of 20%.Well.......after thinking about this, that would be a total of 40% I would be paying out (20% to rep & 20% to hostess) leaving me only 30% profit, figuring 30% for my cost to make the candels. Right now I only charge 3x my cost and I know in her area, they would not sell for much more than that amount. Somehow, the rep & hostess together are making more than me.......can anyone give me some advice on how to handle this? I've never done a home candle party so I don't even know where to begin. Thanks for your help! Quote Link to comment Share on other sites More sharing options...
malaki Posted November 16, 2006 Share Posted November 16, 2006 if i was you since shes been bugging you about it ask her if you 2 are that good of friend you can talk about money, i know i can with my friends see what she would want from you for doing the show . i wouldnt go above 15 % but that is just me . sorry im not that much of a help. Quote Link to comment Share on other sites More sharing options...
Sandisoys Posted November 16, 2006 Share Posted November 16, 2006 Give them both 10% instead of 20%. A lot of home parties only give 10%. I sell MK and that's all we offer. Quote Link to comment Share on other sites More sharing options...
cre8tivelegance Posted November 17, 2006 Author Share Posted November 17, 2006 thanks for your responses......does anyone else do home parties? Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted November 17, 2006 Share Posted November 17, 2006 I don't know if this would be any better for you, but why pay the hostess anything at all? Can't you award her in points? You establish how much a dollar would be worth--every $5 in sales gets her a point. She can then redeem the points for merchandise, and you determine how many points your merchandise will cost. So say she had a $100 show. She would be rewarded with 20 points for every $100 sold. Let's say your 8oz candle normally sells for $10. Make that redeemable for 20 points. You will only be out $3 it costs you to make the candle. If she didn't even sell $100 worth of merchandise she would still earn points based on every $5 sold, which she could keep adding to until she got enough to purchase something. If she didn't earn enough at one show, you should still give her some tarts or something for free as a thank you.Math is definitely not my strong point, but from my calculations, overall, you will be out $33 in your cost to make $100 worth of candles you sold, $20 for the sales rep commission, and $3 as your reward, which makes a total of $56. You will make $44 on the show. Quote Link to comment Share on other sites More sharing options...
DatCandleMaker Posted November 17, 2006 Share Posted November 17, 2006 Treat the Rep as a wholesale account. Sell the candles directly to the Rep - cash up front. Let the Rep decide how SHE wants to reward the hostesses and what she wants to sell the candles for. You do not have to wait for the turn on your money, you do not have to worry about returns. You are not OUT any money to pay the Rep or the hostess. I am a big meanie though Dat Quote Link to comment Share on other sites More sharing options...
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