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Private Label?


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I just got a request for a private label wholesale account from one of the other vendors at a swapmeet I do. Apparently she has a store out of state, and she wants to buy some candles from me to sell there. She is ok with having my information on the bottom of the candle but wants her own label on the top. To start with she wants to buy 24 of my 7oz candles and 24 of my 17oz candles. She only wants one of each scent (I'm assuming so she can find out what sells). The weird part is that she and her husband didn't seem to forthcoming with information about the state they wanted to sell them in or the store they own etc... I've got myself worried now that she's going to relabel them and sell them at the swapmeet as her own candles. Maybe I'm just being silly. I haven't sold her anything yet other than the 17oz candle she bought for herself. It was my first request for wholesale and I got so excited I just jumped the gun and started spewing off information at an alarming rate. Now that I think about it I should have said that I would need to work up an estimate for her etc... And I never should have even mentioned private label unless she brought it up. Jeeze I'm honest to a fault sometimes. I'm probably just being paranoid, it was busy today and difficult to have a lengthy conversation. Anyway, thanks for letting me vent a little...

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I personally wouldn't do only one scent each. There are minimums in wholesale for a reason. I'd consider giving her 30% for a bulk purchase, but not 50%. If she's trying to see what sells, honestly, even only 1 of each, I don't see the logic in that, but I'm not awake enough to figure out how to explain it. 3 of each and one scent sells out first, then it will most likely a good seller. But one only, once that one sells, future customers won't even know the scent is offered, and they're limited to what's left. Eh, that's the best I can do at the moment.... it's there in my mind, just not coming out in words.

If she still wants to start with one of each, then give her 30% off, and let her know she can get the full 50% off when she orders next time with your minimums per scent.

Also, don't do it without full information from her about the store, the state (why in the world would she hide either unless she has something to hide, most people are proud of their businesses). Very simply, tell her you need all this information (including her tax id number for this business) to be able to sell to her. And you do need this info.

If you're not comfortable, don't do it. But don't write it off simply because you're a little suspicious. If you haven't nailed down your wholesale terms, PM me, and I'll send you what I do. It should give you a good guideline of the various things you should include. And doing it private label could get it a little more complicated as well. Private label can be very lucrative though, just make sure it's being done properly. BTW, is this candles, B&B, soap, all the above.... it can make a difference in the labeling.

But congratulations on the opportunity!

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