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Buying directly from manufacturers.


LaurieF

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Anybody have a clue how you would go about buying from manufacturers? I am considering starting my own supplier business and just need to know where to start! I am going to contact manufacturers directly but just wondered if anyone had any suggestions, input, warning for me to know.

This all could be a pipe dream but we have the funds to start some kind of business right now and I thought I should stick to something I know. I've been making and selling candles for a couple years now but I don't think a store front or even website for my product would be profitable enough for the investment necessary.

Thanks for any input.

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Pls don't think I am trying to discourage you, but so many small suppliers have gone under in the last few years. Of course, you could make it with a lot of work, the Good Lord, and a lot of luck. Are you sure you want to sink your money into this type of endeavor?? It takes a lot of money to just carry FOs and even MORE to be a full-line and carry wicks & wax.

Try getting a website set up and offer your products and see how that goes, after you get a feel for that, maybe add FOs and a few supplies. I'm afraid a lot more small suppliers will go down this year and I just wouldn't do it. Good luck, Carole

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I agree, there is a lot of $ to be made on the FO markup, but can you imagine the initial investment? Then what if your customers don't like what you have chosen? We buy our 8 or 10 top sellers in 25# buckets and it averages about $11.00/#. I knew the guy from Alvarado and he had high hopes with his candle supply business and to my knowledge they went "bust." The markup on wax is very little but you need to carry a lot. Just IMHO. Now 10 years ago, I think it would have been a different story. Carole

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i have an email from a wax supplier and this is what it said..........

Must be able to purchase 1/2 truckload of products at one time - 19,800 lbs.

Would need to be able to establish credit for same.

Need to have website available. Would need to promote the (i won't mention the brand) brand on the website.

Facility you are selling from must be presentable - clean, neat and well maintained

Pricing based on a minimum purchase of 12 pallets (19,800 lbs) is:

$0.59

$0.57

$0.72

$0.64

This is for 4 diff kinds of wax......

Don't know if you have gotten as far as getting prices or not but thought I would share what info I have.........HTH

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Thank you everyone I appreciate the input.....and Carole yes I appreciate yours. I would be insane not to take the negatives into consideration. This is all still at the "thought" process right now which I will have to do all the homework as if I had decided to do this and then decide. Because there is so much to consider. As far as the oils go, I would think I would start with the so called proven winners which I could base on my sales, opinions from this board, and just your standards (vanilla's, cinnamons, etc.) And as far as website goes, my whole thinking was geared more towards online sales than storefront. And I haven't looked yet for anything so I know nothing about the dyes.

Well, its definitely something that will require ALOT of thought and research, but I'm a research nut so this kind of thing is actually fun for me. I would imagine just the research and consideration will be a year process. Plus I get all my final approvals from the big CEO in the sky.....and he's always right and always faithful!!

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If you need wax, go through IGI directly. Their minimum order is only 4000 lbs and they have lots of available blends, including (and this is what interested me) three different types of palm wax.

That minimum is only EACH TIME you purchase, but you must be able to buy 24,000lbs in a year in order to order 2 pallets at a time.

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Trish is correct. Minimum is two pallets at a time, meaning you can't order one. You also have to order 24,000 lbs throughout the year in order to get the pricing.

:rolleyes2

I never said 1 pallet.

And I still don't see where they say you have to order 12 tons of wax per year to order 2 pallets. Can someone please provide a link to this information?

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:rolleyes2

I never said 1 pallet.

And I still don't see where they say you have to order 12 tons of wax per year to order 2 pallets. Can someone please provide a link to this information?

Yes the minimum order is 2 pallets at a time with a total order of 24,000 lbs throughout the year. Call them and they will tell you the same thing. It may not say it on their website but that is their minimum.

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Just to throw in our 2 cents worth ---

IGI is not a favourite wax mfg of ours. When we first started using them about seven years ago, their minimums were small (as I recall one pallet but no yearly miniimums). Their sales reps were eager to get new business. The price/lb for the wax we used was 59cents (it's .82 now). Then after a couple of years the minimum went to two pallets along with price increases. Last year they notified us that there was now a yearly minimum of 24,000 lbs just to be able to order direct. Plus, we were emailed five or six price increases over the year. We were not quite to the 24K min, but were still dropped. They sent us a "wonderful" letter about the advantages of us buying from local distributors. Right! Higher prices, plus, the distributor they hooked us up with did not carry our waxes. IGI has grown and are not really interested in the little guys. Sorry, had to vent.

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