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Posted

Hey guys,

Ok so I haven't really sold any products, just to my moms friends, gave lots away though. This year I made gift baskets with some of my products for all the women in my fam. They seemed to be a hit. My SIL, is a advertise writer for some spanish magazine, and has lots of clients. She took my basket to one of her friends that owns a little shop somewhere in the city. SHe said that the ppl really liked them and want to put my stuff in her store. I'm almost done with the legal paperwork mumbo jumbo and am shopping for insurance. My question is, should I do this? They want me just to give her some candles to see how they do, no contract no payment unless they sell. Well she also wants me to tell her how much $ for them. I know some things about wholesale and I know thats not how it works. She should price them herself so she makes money and I get payment from here at my wholesale price right? I just dont want to loose product over this if it all turns out to be a scam. I know it won't be too much exposure, since it's a store that only focuses on a specific culture, but it could potentially get my foot in the door? I don't want to look a gift horse in the mouth, it's nice that my SIL did that (without consulting me!) but I never saw the store, or met the lady, I just don't do business that way. What do you guys think? I make my stuff more upscale, since thats what sells best around here. I don't know how important it is about who carries your products, and how ppl view them just by that. Does that make sense?

Posted

I would not put anything into a store without a contract spelling everything out. There are just too many things to consider. For instance, what if a product is damaged or stolen? Who is responsible? How much is the agreed upon amount? If it is not in writing, it is their word against yours.

It could be a wonderful thing to have your products in the store, but if done without a good contract, you may be losing more than just product if things go wrong.

Donna

Posted

I'm with Dove on this one....if there is no contract and your candles get damaged or "disappear," then there is no compensation. You should consider consignment, where the contract states that the store receives a certain percentage of the sale, or the states that they receive a certain dollar amount, or you receive that amount. Wholesaling I believe is when they buy the candle from you at a set price, and then they mark it up....but you are getting paid up front.

Don't do anything without a contract!

my 2 cents

Posted

That doesn't sound very fair to you. If you don't know this person, you don't know their intentions. I did the same thing when I first started. I had a co-worker's sister buy a couple things from me and than she said if I gave her some samples she would take them to work and show everyone where she worked to get me lots of business. Well stupid me I gave her whatever she chose and she took off and I never received any business from it. I see her occasionally and she just puts her head down and walks on by. I learned a very good lesson, not to give anything away. Create some brochures with the wholesale prices and give her one. If she wants a sample than tell her she has to buy one at retail and it would be credited when she purchases wholesale from you. Plus don't ever do any business without a contract. You will most likely get burned.

Posted

I did this ONCE and learned my lesson. It all sounds great when you aren't established and someone is doing you a "favor" but the fact is, they are in business and they know that other companies aren't just going to give them their products for free just to sell in their store. They are also aware of the liability issues.

I got burned for two reasons, one the person who "helped" me marked my candles up to a ridiculously high price, higher than double my wholesale price. I would never have paid that much for the candles, and neither did the customers. Second, about a third of my candles came back dinged and damaged, so I had to sell them off cheaply--my loss. She gave them all back and said they didn't do well. I found out later that they weren't displayed appropriately either. When they have nothing to lose, they don't seem too concerned with taking care of your items.

I will never get in that position again. I am not saying that all people are like this because I am sure it has worked for some, but I have seen enough complaints on this board to convince me. Wholesale, in my opinion, is the way to go. Then they are responsible for the merchandise and if they over price it, they will have to lower it or be stuck with it. They will also take better care when they are the ones who will foot the loss.

Edit to say--it becomes more clear if you think about companies like Darice and Jackel--they don't give their merchandise out for free for people to try in their stores--and no one questions their minimums and requirements. We are no different except they can afford to not do the minimums--we can't.

Posted

You definetly need to have a contract. You also need to go to this store and meet with the owner. If this is consingment, you need to know what percent she expects to take. 20 or 30 percent is the going rate around here. You should expect to get more than wholesale since she has no investment here. I personally do not do consignment. Maybe you SIL would like to have a party.

Posted

Thanks for the advice. Hopefully she won't call anytime soon, but if she does I'll tell her my price, and all that jazz. Do you need a lawyer for a contract? Honestly, I rather not deal with wholesale just yet, may end up tellin her no for now.

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