ubure Posted March 25, 2007 Share Posted March 25, 2007 It seems I need some help from you.Today I got request from a wholesaler for candles: they asked me if I really make handmade candles. I said yes, of course, and then they sent me another email asking for an offer for quite a big job: filling 15.000 containers of theirs with my wax (scented, of course - but they haven't agreed on a special scent yet)!So far I don't know how much time I'd have got for this, but I will call the owner tomorrow morning and ask about this.They also want to have my catalogue and a pricelist for my own candles.I'd really like to have this job, but I'm not sure what to offer them. I know I cannot take 2 or 3 times my cost (because of the amount), but what else? My cost + 50%, 75%, 100%?? What' your opinion?Thanks!! Quote Link to comment Share on other sites More sharing options...
prairieannie Posted March 25, 2007 Share Posted March 25, 2007 I would be leery of anyone who wanted that much business and knew nothing about my company. Unless it was someone who had tried my candles and knew of their quality, I don't think I would be inclined to believe that it was a legitimate offer and that's probably just me being skeptical. However, if it IS legitimate, then you need to keep in mind the volume, and you need to know if they are willing to work within YOUR guidelines. Your net terms, and your time constraints. If not, then be careful! This is wholesale, you need to charge them double what your cost is! You may also want to see if they are willing to pay you up front. That's a LOT of supplies you'd hve to buy! Lots to think about. There's my .02 ! Good Luck! Quote Link to comment Share on other sites More sharing options...
ubure Posted March 25, 2007 Author Share Posted March 25, 2007 Hi Prairieannie,you're right about scepticism, but they are a big company and I guess they've contacted me because I'm the only one near and far you does soy candles.My thoughts are the same on getting paid (I don't have the means to buy all these supplies out of my own pocket) and I want to be sure I get the money. And I absolutely expect them to want me to send them samples.I thank you for your opinion - it is gladly appreciated!! Quote Link to comment Share on other sites More sharing options...
Candle Makin Momma Posted March 25, 2007 Share Posted March 25, 2007 If you agree to it let them know that you will need a certain amount of their containers to test each and every scent to make sure they are quality candles.That number scares me! LOL Quote Link to comment Share on other sites More sharing options...
ubure Posted March 25, 2007 Author Share Posted March 25, 2007 If you agree to it let them know that you will need a certain amount of their containers to test each and every scent to make sure they are quality candles.That number scares me! LOLIt scares me, too, a bit, but I know I can do it as long as I've got enough time, and that's the point: they will have to accept my conditions, otherwise I cannot make it.Of course I will let them send me some containers (it's only one container and only one scent, fortunately!)! Quote Link to comment Share on other sites More sharing options...
BLSoaps Posted March 26, 2007 Share Posted March 26, 2007 As for the money part, to make sure you don't get stuck with tons of supplies, and no money... With new wholesale customers, I always require 100% upfront. Once a regular pattern of sales has been established, as well as a credible history with their payments (they all clear without problems), then alternative payment options can be discussed, but it is always at MY discretion. I only have one WS customer that I'm flexible with, but he's local to me, actually a neighbor of my parents. So I've got that whole, "I know where you live" thing going on! LOL! I normally have this clearly laid out on my wholesale policy page, but we're redesigning, and well, there's isn't a wholesale page at all at the moment. Then it's also in an e-mail agreement that I send them.Make sure you get some kind of a tax id number (more proof that they're legitimate). I'd also recommend talking to your bank about what kind of secure payment you should accept from them, like a wire transfer. If they're wanting 15,000 containers, that's going to be a HUGE amount of money. You don't want to risk the chance of a fraudulent card being used, and the payment being reversed down the road. So talk to your bank and find out what type of payment you can receive without the risk of it being reversed down the road. I hope it works out for you. My suggestion, be honest with them, tell them this is by far the largest order you've ever filled, but you're excited about working with them, and will do everything in your power to work it out. Calculate how much time you honestly think you'll need to make the candles, and add on at least 20% more time, and give them that estimate. It's better to overestimate and deliver early, than to underestimate and to deliver late. I know one of my wholesale accounts, they're working me up to larger orders; starting with hundreds and working up to thousands. (And now that I'm ready for the larger orders, I'm itching to go, and they're dawdling )So take a deep breath, and go for it! Quote Link to comment Share on other sites More sharing options...
ubure Posted March 26, 2007 Author Share Posted March 26, 2007 Hi Lindsay,you've mentioned several important things (and it is so good to hear all those things here, because everybody has some valuable advice to give:smiley2::smiley2:!) and I will definitely take each into account.I do have their tax ID (they gave it to me with their first email - they also have a website) and here in Grmany and the neighbouring countries it is not usual to pay with credit cards. It is rather normal to pay in advance.Today I've talked to the lady who owns the company. She told me that the candls are for one of their customers who wants to have - GUESS WHAT??? - lotion candles!!!:shocked2:Okay, she said she doesn't care what her customers want as long as they pay for it:cool2: - that's fine with me. The containers will be produced here in Germany (ceramic ones, very stylish) and they will be sent to me in about to months (which is perfect, because beforehand I have to do this line for my laundry lady, she's on her promo tour through Germany at the moment and gathers the orders). After that I only need to say how long it takes me to produce the candles. She said if something has to be produced properly it takes its time, so they don't rush me.I asked her what price the customer had in mind for the costs of one candle and she told me that it's gonna be a kind of expensive candle so I won't have to worry about my costs. Okay, I will type an offer for them (according to your appreciated advice) and I will see if they agree or not. I will definitely tell them that I need my money in advance, and if they're really that big, they won't make a fuss, because it's quite usual here to pay in advance for something that has to be produced according to your specifications. So my risk is minimal.As for the money part, to make sure you don't get stuck with tons of supplies, and no money... With new wholesale customers, I always require 100% upfront. Once a regular pattern of sales has been established, as well as a credible history with their payments (they all clear without problems), then alternative payment options can be discussed, but it is always at MY discretion. I only have one WS customer that I'm flexible with, but he's local to me, actually a neighbor of my parents. So I've got that whole, "I know where you live" thing going on! LOL! I normally have this clearly laid out on my wholesale policy page, but we're redesigning, and well, there's isn't a wholesale page at all at the moment. Then it's also in an e-mail agreement that I send them.Make sure you get some kind of a tax id number (more proof that they're legitimate). I'd also recommend talking to your bank about what kind of secure payment you should accept from them, like a wire transfer. If they're wanting 15,000 containers, that's going to be a HUGE amount of money. You don't want to risk the chance of a fraudulent card being used, and the payment being reversed down the road. So talk to your bank and find out what type of payment you can receive without the risk of it being reversed down the road. I hope it works out for you. My suggestion, be honest with them, tell them this is by far the largest order you've ever filled, but you're excited about working with them, and will do everything in your power to work it out. Calculate how much time you honestly think you'll need to make the candles, and add on at least 20% more time, and give them that estimate. It's better to overestimate and deliver early, than to underestimate and to deliver late. I know one of my wholesale accounts, they're working me up to larger orders; starting with hundreds and working up to thousands. (And now that I'm ready for the larger orders, I'm itching to go, and they're dawdling )So take a deep breath, and go for it! Quote Link to comment Share on other sites More sharing options...
cybersix Posted March 26, 2007 Share Posted March 26, 2007 inez I have no advice for you, but wnat to wish you good luck!!congratulations!!! Quote Link to comment Share on other sites More sharing options...
gmp Posted March 26, 2007 Share Posted March 26, 2007 Good luck and congratulations, Inez! Way to go!! Quote Link to comment Share on other sites More sharing options...
ubure Posted March 26, 2007 Author Share Posted March 26, 2007 Thanks to all for your great encouragement!!Nothing is decided yet, but with your help I am only prepared to head into this if it is under my conditions - otherwise I won't do this job.I knew it would be better to aks here for advice - it helps to adjust your own view! Quote Link to comment Share on other sites More sharing options...
BruceCarvesWax Posted March 26, 2007 Share Posted March 26, 2007 Could be that there might not be many chandlers around willing to take on the huge added responsibility of making lotion candles. You being the manufacture will be the one that takes the hit if some fool gets burned for using them the wrong way. This puts a whole new light on the order if you ask me. You will not just be making them you will be responsible for them and their proper use. I don't know how it works over there, but here you would be regulated as a cosmetic and have to follow their labeling rules also. Heck this "customer" they are talking about might even be a candle company that don't want to manufacture them their selves for liability reasons! I would drive myself crazy with this one, glad its you that has to decide and not me. whewBruce Quote Link to comment Share on other sites More sharing options...
ubure Posted March 26, 2007 Author Share Posted March 26, 2007 Hi Bruce,exactly my concerns. I'm just writing an email to the wholesaler with all this stuff - I just remembered that is has to be declared as a cosmetic - and here we go with certification etc. etc......I know that it's a big hit in London (as it seems) so I guess they want to take advantage of this trend.If they are prepared to do and pay for the certification I will agree on making this lotion thiing for them, but they will have to pay for my testing phase as well.I'm quite sure they don't know what they are talking about - lt#s see how they react on my concerns...I don't HAVE to do this job - i would have been great if it had been an "ordinary" soy wax candle (OMG, all this beautiful money:cry2:!!), but before I'm sent to jail for a stupid chicken burning her skin...nonono!Let's see, maybe I can change their mind.Could be that there might not be many chandlers around willing to take on the huge added responsibility of making lotion candles. You being the manufacture will be the one that takes the hit if some fool gets burned for using them the wrong way. This puts a whole new light on the order if you ask me. You will not just be making them you will be responsible for them and their proper use. I don't know how it works over there, but here you would be regulated as a cosmetic and have to follow their labeling rules also. Heck this "customer" they are talking about might even be a candle company that don't want to manufacture them their selves for liability reasons! I would drive myself crazy with this one, glad its you that has to decide and not me. whewBruce Quote Link to comment Share on other sites More sharing options...
RobinInOR Posted March 26, 2007 Share Posted March 26, 2007 See if they can stage the quantites as well. Don't know if you're set up to have 15K containers sitting around waiting to be filled Maybe they can divide it up into multiple shipments with multiple delivery times. Sounds like a fun project, though I bet you will be sick of whatever scent they pick when it's all over Good luck! Quote Link to comment Share on other sites More sharing options...
ubure Posted March 26, 2007 Author Share Posted March 26, 2007 See if they can stage the quantites as well. Don't know if you're set up to have 15K containers sitting around waiting to be filled Maybe they can divide it up into multiple shipments with multiple delivery times. Sounds like a fun project, though I bet you will be sick of whatever scent they pick when it's all over Good luck!Hi Robin,that's another good idea, thank you!! I've really a lot of space, but I have to store 12.000 lbs of wax as well:D so I guess I will have to find an arrangement with the container people.If this whole thing really comes to working you can bet I will at least be allergic against this special scent, vomitting every day, my food smelling like those candles... I think I will move to my hen house during this period: healthy country air! Quote Link to comment Share on other sites More sharing options...
Sally Posted March 26, 2007 Share Posted March 26, 2007 Aren't you glad you didn't give up last year?Hope it all comes good for you.Sally. Quote Link to comment Share on other sites More sharing options...
ubure Posted March 26, 2007 Author Share Posted March 26, 2007 Aren't you glad you didn't give up last year?Hope it all comes good for you.Sally.You remember this?:smiley2::smiley2: Yes, you are right, I am glad. It was such hard work for me (and often enough still is), because people with my illness always have to fight for each and every thing that has to do with self-confidence. And of course there are the relapses when you are not able to work at all for some days. Meanwhile I have developed some useful strategies that help me get through the day without having too much trouble.Even if I won't do this 15K-container-lotion-thingy I still have my classy candles for the laundry company - and this deal is perfect! Quote Link to comment Share on other sites More sharing options...
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