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Wholesale to a local hotel?


Crystala25
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A local hotel is changing from a big franchise name to a private hotel and wants to know if I can make all of the little lotions, soaps, shampoos, etc. to go into each and every room of the hotel. There is over 100 or so rooms and they want to buy in cases, they even said that my name can still be on the the soaps. This is good news, but now where to start. I know if I buy in bulk I can get my prices down, but can I get it low enough and still make a profit. Any ideas or suggestions? TIA

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First of all congratulations! I don't do soaps but candles. Do they already know your prices? If so, and they ask you to work for them, stay with those prices. At this point you couldn't tell them prices are changed. If they don't know them yet you could make a "simulation": calculate what would be your cost if you buy in bulk. Then when you worked out what a soap or a lotion would cost to you double it and you have the price for them. Hope this makes sense.

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Cybersix, yes that did make sense thank you.

LaVida, I am so excited, but I am so stressed. They order in cases and usually about 5 cases of each product at a time. But, they want the first order in 2 weeks. Here is how I feel right now...:shocked2::yay::rockon::eek: This is what I need to do right now :meditate:

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Calm down, take a deep breath, and set to work. Don't have any advice for you, but congratulations and good luck. And what cybersix said makes excellent sense: if you underprice yourself, you will lose money and never get your prices back up. When you do your "simulation", don't forget shipping.

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we just received a hotel account also. But we have done some volume manufacturing, so did pick up some experience, some good, some not so good. It is more manufacturing, instead of what we make for retail basis. How many is 5 cases? The account we just received is 10.000 per unit, starting with 3 units. Cream, shampoo and conditioner. I offer different pricing depending on the volume. I have a spread sheet all set up, (actually, many spreadsheets). I figure all the raw material costs. Right down to the penny. My sheet is set up with different prices, 2X, 2.5X, 3X. I then set them up with a quote, usually going with at least 2.5X, even 3X. Then we negotiate a price. I usually do not go below 2.5, unless it is a very easy product to get out the door. In the first big account, they supplied the labels. With the hotel, we will supply everything. I am starting to work with Lightning Labels, because my own labels won't work very well. And we are getting a semi automatic labeling machine that needs rolls.

When they get up to 5,000, or 10,000, my costs dive. One of the packaging companies that I really like working with is www.containerandpackaging.com I deal with a Stephen Post. The prices for most raw materials reduces greatly with volume. So I can offer my product cheaper. Then, I can make a greater profit for what I sell retail. It is the basis that Walmart was built on, but it got way off track. No wonder the big companies can keep getting bigger. It is all about volume, if you want to make some good money.

We are excited too. We are hoping to receive even more hotel accounts. I know we can give them a heck of a lot better product.

It sounds scary, but really, it ends up being kind of fun. And I am finally going to make some real money. If you can make a product for say $.40, which used to cost you $1.00, because of the volume, you will make an extra $.60 on that same product.

Hope that all helps, if it makes any sense. Good luck.

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