Opinions needed for wording on wholesale policy

[Violetsexoticcandles]

I wrote this over the past few days, have edited it, and would like the opinions of others who have implemented such policies. Please let me know if anything should be added, edited, or if I'm being too harsh. I haven't uploaded it yet to my website (having server issues, grr).

Thanks guys!

Wholesale Accounts

While most of my business is geared towards retail customers, I do welcome the opportunity to work with wholesalers who would like to buy in bulk in order to offer my products in their stores, on their websites, etcetera.

I am willing to offer a 40-50% discount on any product I currently sell. I feel that the benefits of selling wholesale can be multiple for all parties involved.

I have carefully considered every aspect of selling my candles, both wholesale and retail, and after experimenting with the idea, I have come up with some policies regarding wholesaling my candles.

1. For me, one large benefit of wholesaling my products to retailers is to sell in bulk, thus I must receive a minimum order of $100 in order to offer my goods wholesale.

2. Another benefit is notoriety. My candles will go into other people's shops and homes. That being said, I am reluctant to do private labeling, or to allow those who purchase my candles to place their own labels on my products. One must understand that it takes hard work and years of dedication to learn how to make a great product, and that recognition of said hard-work and dedication is the right of the chandler. I do, therefore, require that my labels be used when reselling, in order to obtain the maximum 50% wholesale discount.

3. Should a customer desire a wholesale order for products that will not carry my labels, the label they create must include "made by Violet's Exotic Candles in Kinderhook, NY." At no time should any reseller claim the candles were made by anyone but me.

4. For private labeling with no recognition whatsoever, I will only offer a 40% discount on retail pricing. In addition, the minimum order requirement is $150.

5. Once an agreement is reached between the wholesaler (Violet's Exotic Candles) and the reseller or retailer, it is considered legally binding. This agreement can be made either via email or mail, or in person; whatever method used, it is legally binding.

6. Once an agreement is reached, a 50% downpayment is required, with a promissory note signed and notarized by the other party, promising to pay the remaining balance due, once the order has been completed, prior to delivery or shipment. The downpayment is non-refundable.

6.a. Once an agreement is reached and the downpayment is made, resellers have 3 business days to cancel their order. Should they cancel their order within that time period, the downpayment will not be refunded, as supplies will have already been ordered for the specific order placed by the reseller. If an order is cancelled following 3 business days, a 25% restocking fee will apply towards the total balance, in addition to the non-refundable deposit.

7. All wax and fragrance oils used, suppliers I obtain them from, wick/wax and fragrance oil combinations, are considered trade secrets and may not be copied. Any violation of this may result in legal action on my part.

If you would like to sample my products prior to deciding whether or not you would like to retail them, you are more than welcome to order at retail cost. I recommend buying tarts, as they will give you an idea of what scents you will be receiving and are cost-effective, as well.

[SliverOfWax]

You'e going to put that on your website? Why?

How about keeping it simple: Wholesale Enquiries Welcomed.

Then if you feel the need to tell your life story, you can send them the info when they ask.

jmo

www.StuffSunshineLikes.com

[Violetsexoticcandles]

You'e going to put that on your website? Why?

How about keeping it simple: Wholesale Enquiries Welcomed.

Then if you feel the need to tell your life story, you can send them the info when they ask.

jmo

www.StuffSunshineLikes.com

The why is simple. I got majorly screwed on a wholesale order last month and lost hundreds when she backed out after months of negotiations. I want my expectations to be clear.

It is not my life story (why would you imply that? That's ridiculous). It is policy. I've seen other sites that carry similar policies.

[sassysoapsnsuch]

What i would do is state you offer wholesale and to email for info THEN send your note. I like how it is stated. Another way to do it is to have a gateway for your wholesale clients that they have to get a password from you to go into the wholesale area. In that area you can have your policies.

[Violetsexoticcandles]

What i would do is state you offer wholesale and to email for info THEN send your note. I like how it is stated. Another way to do it is to have a gateway for your wholesale clients that they have to get a password from you to go into the wholesale area. In that area you can have your policies.

That's a great idea, Sassy... now if I can figure out the password thing on Dreamweaver, if my server ever comes up!! lol. Sigh. It's been messed up for two days. I can pull up my site but can't remotely connect. I've emailed my friend who set me up. Hopefully it's temporary.

Otherwise, perhaps you're right. I should maybe just save the note as a template or implement it as part of a contract on word, then email once they've expressed interest.

I guess I just didn't like being ripped off last time and wanted it known what my policies are, but was afraid that posting that to my website might scare resellers away...

Thanks!

Vi

[sockmonkey]

You know it's not a good thing when someone starts out saying "since you asked," but here goes...

I understand where you're coming from and wanting to protect yourself, but this is way over the top. I would have to wonder whether a business owner would even be willing to read all the information to the end before they decided to look elsewhere for their candles.

I've never heard of a buyer having to get an order form/agreement notarized to buy $100 worth of candles. If you expect to be taken seriously as a business, then you'll have to make your policies look legitimate. It is very obvious by your policies that you have been taken advantage of in the past, and now you expect everyone else to pay the price. If you're so afraid of being ripped off, just make them pay 100% for everything up front. Businesses are used to that.

Remember, the customer is doing you the favor by purchasing from you, you're not doing them a favor by letting them spend their money with you--they can take it anywhere. They don't care how much selling wholesale benefits you, they only care what benefits them.

It seems like your information reads more like random thoughts in your head, not a finished document. First you say you don't want to do private label, then you give prices for doing private label. You say wax, fragrance oils, and the suppliers you get them from are trade secrets and may not be copied. How are you going to prevent anybody from buying from any of your suppliers? Those cannot be considered trade secrets.

I think your wholesale document needs a bit more fine-tuning before you publish it.

[wicked1]

I agree that it seems a wishy-washy. I would try and eliminate the "I" in many of your statements.

[joym]

Try to look at the agreement as if you were the retailer.

I've been doing wholesale for about 4 years now, and have never found it necessary to have an agreement of this type. Almost all of my retailers pay by credit card, which I charge the same day I ship.

I have found, by trial and error, that it's best to have a specific line and number of items that you offer wholesale; some of the items I make for craft fairs & direct retail are too time consuming, etc. to offer wholesale.

Hope this helps - going from retail (craft fairs) to wholesale is a big jump and needs some very careful consideration.

[soapmom25]

I would say to simplify it. Decide exactly what you are and aren't willing to do ~ don't give options, it will just create headache later. Decide what your price/discount will be and leave it at that.

If you're worried about getting burned, just get payment upfront. We used to allow Net 30 accounts and I finally just got too busy to keep up with the A/R and tired of trying to be nice and understanding about why they hadn't mailed a check yet, we went strictly to pre-pay.

I will add though, that I didn't switch to pre-pay until I had our wholesale index available online. Once that was up and running they could no longer phone, email, or fax orders ~ all orders had to go through the online cart.

I basically only have 3 terms ... minimum order, method of payment, shipping coordination (we happen to require they provide a UPS account for 3rd party billing so they pay exact, actual costs). That's it.

[debscent]

Violet,I get what you are trying to accomplish, but I don't think you will be taken seriously. This is a contract/agreement, there is no place for "I." You are noting the benefits of wholesale, people who buy in wholesale know this already. As for private labeling, either you offer it or you don't. Try to simplify this process a bit more. Payment terms need to be simple.Whatever happened to your fundraiser? That might be a bit easier to write terms for.

[Violetsexoticcandles]

Violet,I get what you are trying to accomplish, but I don't think you will be taken seriously. This is a contract/agreement, there is no place for "I." You are noting the benefits of wholesale, people who buy in wholesale know this already. As for private labeling, either you offer it or you don't. Try to simplify this process a bit more. Payment terms need to be simple.Whatever happened to your fundraiser? That might be a bit easier to write terms for.

Hi Deb,

I've taken what everyone's said into consideration, and won't be posting this on my website. I think the private labeling thing won't be a real issue. I will have to give it some thought, though. I mean, while I'd love to have my name on all of my candles and hated the idea that my last wholesale account didn't use my labels on my tealights... but money's money, too. So I'll have to mull it over.

I think what I'll do is just put my contact info on the page and once I receive interest from a retailer, I'll just tell them the conditions and expections. I will probably end up requiring full payment up front.

I tried contacting the school district's PTA for fundraising opps, but have not heard back. I think that Angi was right on this one- most have probably already chosen theirs for the year. I will probably try to call them again this week, though, to follow up.

My son's been in a teeny bit of trouble at the high school lately, so I'm not sure the AVP will want to talk to me, even though we were in grad school together! LOL. Kids!!:rolleyes2

[BLSoaps]

I agree with the other comments about only sending this out on request. But there are some other changes I hope you don't mind my recommending. I'm going to put my comments in BOLD, and hope it comes through right! LOL! It's been a long day, so we'll see!

Wholesale Accounts

While most of my business is geared towards retail customers, I do welcome the opportunity to work with wholesalers who would like to buy in bulk in order to offer my products in their stores, on their websites, etcetera. This made you sound like a complete novice to wholesaling. If you are, that's fine, but don't advertise it. If you sound competent and professional, then you'll be treated as such. If they think they can take advantage of you because you're new to wholesaling, then they will. It also made me think that you care more about your retail customers than your wholesale customers. If I had been a potential wholesale buyer, this would have turned me off.

I am willing to offer a 40-50% discount on any product I currently sell. By using the term 'willing', it sounds like your pricing is negotiable. It also sounded a little condescending, like you're doing THEM a favor by offering that discount, when it should be automatic. I feel that the benefits of selling wholesale can be multiple for all parties involved. Huh?

I have carefully considered every aspect of selling my candles, both wholesale and retail, and after experimenting with the idea, I have come up with some policies regarding wholesaling my candles. This again reinforced you sounding like a novice. Like the idea to wholesale is brand new to you. I'd just cut this paragraph all together.

1. For me, one large benefit of wholesaling (not needed) my products to retailers is to sell in bulk, thus I must receive a minimum order of $100 in order to offer my goods wholesale. Too much, Keep it Simple. Minimum Opening Order: $100 Minimum Reorder: $XXX.

2. Another benefit is notoriety. My candles will go into other people's shops and homes. That being said, I am reluctant to do private labeling, or to allow those who purchase my candles to place their own labels on my products. One must understand that it takes hard work and years of dedication to learn how to make a great product, and that recognition of said hard-work and dedication is the right of the chandler. I do, therefore, require that my labels be used when reselling, in order to obtain the maximum 50% wholesale discount. On the private labeling, decide one way or the other. You DO or you DON'T. At the moment, you simply sound wishy washy. Private label is a big thing though. I don't know the policies with candles, but B&B, if we do the packaging, the label still needs to state that it was manufactured by Company XYZ (us) in Anytown, UT, USA.

However, that said, I offer both. I honestly don't care which they choose. If it's my label, and they meet all my minimums (total order cost, and product minimums), then they get 50% off my retail prices. Private Label gets 40% off. If I design the label, they pay for that also. If you decide to do private label, and need more help setting it up, let me know.

3. Should a customer desire a wholesale order for products that will not carry my labels, the label they create must include "made by Violet's Exotic Candles in Kinderhook, NY." At no time should any reseller claim the candles were made by anyone but me.

4. For private labeling with no recognition whatsoever, I will only offer a 40% discount on retail pricing. In addition, the minimum order requirement is $150. See above for notes

5. Once an agreement is reached between the wholesaler (Violet's Exotic Candles) and the reseller or retailer, it is considered legally binding. This agreement can be made either via email or mail, or in person; whatever method used, it is legally binding.

6. Once an agreement is reached, a 50% downpayment is required, with a promissory note signed and notarized (I would have taken off at this point. This is so far out of the norm, I wouldn't bother. I'd find someone else to buy from) by the other party, promising to pay the remaining balance due, once the order has been completed, prior to delivery or shipment. The downpayment is non-refundable.

6.a. Once an agreement is reached and the downpayment is made, resellers have 3 business days to cancel their order. Should they cancel their order within that time period, the downpayment will not be refunded, as supplies will have already been ordered for the specific order placed by the reseller. If an order is cancelled following 3 business days, a 25% restocking fee will apply towards the total balance, in addition to the non-refundable deposit. This was incredibly confusing to me all together. I'd advise simplifying things by simply requiring payment in full up front. If you really want to offer half down, then here's a suggestion...

50% deposit, non-refundable. IMO, this is more than enough to guarantee them not going through with their order. The 25% restocking fee on top of the non-refundable deposit, way too much. I know you want to guarantee that people don't pull out on their orders, but there really isn't any way to do that.

Remaining balance is due when the product is completed, packaged and ready to ship. But you don't ship until the remaining balance, plus the shipping, is paid for.

Personally, I require payment in full up front, then invoice for exact shipping when the order is ready. Although I really liked the idea of requiring a UPS acct to do 3rd party shipping. I like that idea a lot. It would make things a lot easier.

My accounts are used to full payment up front, and don't ask for anything different, but good solid accounts, if they asked for some variation in the payment, I'd offer the 50% down, and 50% due when shipped.

If you do anything custom, require payment in full up front for those, non refundable for the full amount.

7. All wax and fragrance oils used, suppliers I obtain them from, wick/wax and fragrance oil combinations, are considered trade secrets and may not be copied. Any violation of this may result in legal action on my part. I don't think this is needed. You sounded paranoid to me. :undecided If it comes up, then tell them that.

If you would like to sample my products prior to deciding whether or not you would like to retail them, you are more than welcome to order at retail cost. I recommend buying tarts, as they will give you an idea of what scents you will be receiving and are cost-effective, as well. I would perhaps offer to them to then discount this purchase from their wholesale order should they decide to purchase with you. It's a nice courtesy, and lessens the 'blow' of purchasing at retail prices.

Okay, there's a lot in there. If you want any more help, or even someone to look over a final draft later, feel free to send it to me. I've rewritten mine several times, cuz my old computer kept crashing, and I am the absolute worst about keeping track of my back up disks. Which is why I print everything. Hard copies are my best friend.... Just ask my desk which is groaning under the weight of several stacks of filing to do . I was supposed to file this weekend, then David (hubby) ruined that by fracturing his wrist at work, so I've been playing nursemaid, chauffeur (he's on Oxycodone, and definitely can't drive .... it's been a fun weekend... But he feels good! The combo of the Oxy with the anti-inflammatories has him feeling *super banana*)

[Violetsexoticcandles]

Lindsay,

Thanks for all the advice. I am definitely going to rethink and reword stuff... Good to know there are so many chandlers and crafters on CT who will lend a helping hand before we go and do ourselves in here!

I like the hard copy idea, too... I seem to be so disorganized sometimes. I take a day or two and put everything in order, then I have a craft event and things just get lost! I went looking for the inventory I did after my last fair and I couldn't find it!!! Ugh... So had to do it all over again. This time, I put it on a word File. Can't lose that, well... not unless I lose my pc. Should print it out, tho.

I am a novice at this, but I am so happy that you guys are here to steer me in the right direction. Retail seems sooooooo much easier.

Vi

I agree with the other comments about only sending this out on request. But there are some other changes I hope you don't mind my recommending. I'm going to put my comments in BOLD, and hope it comes through right! LOL! It's been a long day, so we'll see!

Wholesale Accounts

While most of my business is geared towards retail customers, I do welcome the opportunity to work with wholesalers who would like to buy in bulk in order to offer my products in their stores, on their websites, etcetera. This made you sound like a complete novice to wholesaling. If you are, that's fine, but don't advertise it. If you sound competent and professional, then you'll be treated as such. If they think they can take advantage of you because you're new to wholesaling, then they will. It also made me think that you care more about your retail customers than your wholesale customers. If I had been a potential wholesale buyer, this would have turned me off.

I am willing to offer a 40-50% discount on any product I currently sell. By using the term 'willing', it sounds like your pricing is negotiable. It also sounded a little condescending, like you're doing THEM a favor by offering that discount, when it should be automatic. I feel that the benefits of selling wholesale can be multiple for all parties involved. Huh?

I have carefully considered every aspect of selling my candles, both wholesale and retail, and after experimenting with the idea, I have come up with some policies regarding wholesaling my candles. This again reinforced you sounding like a novice. Like the idea to wholesale is brand new to you. I'd just cut this paragraph all together.

1. For me, one large benefit of wholesaling (not needed) my products to retailers is to sell in bulk, thus I must receive a minimum order of $100 in order to offer my goods wholesale. Too much, Keep it Simple. Minimum Opening Order: $100 Minimum Reorder: $XXX.

2. Another benefit is notoriety. My candles will go into other people's shops and homes. That being said, I am reluctant to do private labeling, or to allow those who purchase my candles to place their own labels on my products. One must understand that it takes hard work and years of dedication to learn how to make a great product, and that recognition of said hard-work and dedication is the right of the chandler. I do, therefore, require that my labels be used when reselling, in order to obtain the maximum 50% wholesale discount. On the private labeling, decide one way or the other. You DO or you DON'T. At the moment, you simply sound wishy washy. Private label is a big thing though. I don't know the policies with candles, but B&B, if we do the packaging, the label still needs to state that it was manufactured by Company XYZ (us) in Anytown, UT, USA.

However, that said, I offer both. I honestly don't care which they choose. If it's my label, and they meet all my minimums (total order cost, and product minimums), then they get 50% off my retail prices. Private Label gets 40% off. If I design the label, they pay for that also. If you decide to do private label, and need more help setting it up, let me know.

3. Should a customer desire a wholesale order for products that will not carry my labels, the label they create must include "made by Violet's Exotic Candles in Kinderhook, NY." At no time should any reseller claim the candles were made by anyone but me.

4. For private labeling with no recognition whatsoever, I will only offer a 40% discount on retail pricing. In addition, the minimum order requirement is $150. See above for notes

5. Once an agreement is reached between the wholesaler (Violet's Exotic Candles) and the reseller or retailer, it is considered legally binding. This agreement can be made either via email or mail, or in person; whatever method used, it is legally binding.

6. Once an agreement is reached, a 50% downpayment is required, with a promissory note signed and notarized (I would have taken off at this point. This is so far out of the norm, I wouldn't bother. I'd find someone else to buy from) by the other party, promising to pay the remaining balance due, once the order has been completed, prior to delivery or shipment. The downpayment is non-refundable.

6.a. Once an agreement is reached and the downpayment is made, resellers have 3 business days to cancel their order. Should they cancel their order within that time period, the downpayment will not be refunded, as supplies will have already been ordered for the specific order placed by the reseller. If an order is cancelled following 3 business days, a 25% restocking fee will apply towards the total balance, in addition to the non-refundable deposit. This was incredibly confusing to me all together. I'd advise simplifying things by simply requiring payment in full up front. If you really want to offer half down, then here's a suggestion...

50% deposit, non-refundable. IMO, this is more than enough to guarantee them not going through with their order. The 25% restocking fee on top of the non-refundable deposit, way too much. I know you want to guarantee that people don't pull out on their orders, but there really isn't any way to do that.

Remaining balance is due when the product is completed, packaged and ready to ship. But you don't ship until the remaining balance, plus the shipping, is paid for.

Personally, I require payment in full up front, then invoice for exact shipping when the order is ready. Although I really liked the idea of requiring a UPS acct to do 3rd party shipping. I like that idea a lot. It would make things a lot easier.

My accounts are used to full payment up front, and don't ask for anything different, but good solid accounts, if they asked for some variation in the payment, I'd offer the 50% down, and 50% due when shipped.

If you do anything custom, require payment in full up front for those, non refundable for the full amount.

7. All wax and fragrance oils used, suppliers I obtain them from, wick/wax and fragrance oil combinations, are considered trade secrets and may not be copied. Any violation of this may result in legal action on my part. I don't think this is needed. You sounded paranoid to me. :undecided If it comes up, then tell them that.

If you would like to sample my products prior to deciding whether or not you would like to retail them, you are more than welcome to order at retail cost. I recommend buying tarts, as they will give you an idea of what scents you will be receiving and are cost-effective, as well. I would perhaps offer to them to then discount this purchase from their wholesale order should they decide to purchase with you. It's a nice courtesy, and lessens the 'blow' of purchasing at retail prices.

Okay, there's a lot in there. If you want any more help, or even someone to look over a final draft later, feel free to send it to me. I've rewritten mine several times, cuz my old computer kept crashing, and I am the absolute worst about keeping track of my back up disks. Which is why I print everything. Hard copies are my best friend.... Just ask my desk which is groaning under the weight of several stacks of filing to do . I was supposed to file this weekend, then David (hubby) ruined that by fracturing his wrist at work, so I've been playing nursemaid, chauffeur (he's on Oxycodone, and definitely can't drive .... it's been a fun weekend... But he feels good! The combo of the Oxy with the anti-inflammatories has him feeling *super banana*)

[country bee]

I think like everyone else,say less and stick to it.I know it's hard but simple is best.:tiptoe: