wholesale contract sample?

[CatlinPM]

I know this has been asked oh so many times before... I'm trying to put together a wholesale contract as I have 3 stores interested in buying my candles wholesale. I have several ideas of what I want to put in there such a minimum first order and reorder, lead times, payment terms, scent minimums etc... I just really have no idea how to lay it all out on paper? If anyone has a sample contract they would be willing to share I would be greatly appreciative!

[macaroni&cheese]

Why do you want to make a contract in the first place? Not trying to be mean here, but I wonder if all that techno-lingo frightens off buyers. Maybe I am just naive, but I sell wholesale just as if it's any other customer.

[CatlinPM]

It's not really a contract I'm after so much as laying out my terms on paper so that we're all on the same page so to speak. I just want to make sure that they are clear on my policies. I'm thinking that this same page will also incorporate and order sheet of some kind as i will be meeting with these three prospective wholesale customers in person. I kind of want to make this legitimate and as solid as possible, I've already gotten burnt and don't want to go there again...

[macaroni&cheese]

Hey, I totally understand. I have been a mechanic for 25 years, and SOOOOOOO want to get out of it, not too many employers with much integrity anymore. That's why the candles. Long story, but anyway, my whole point is that everybody wants their "best friend" to get something for them, fix their car, make a gift basket. I am concentrating on this portion. You are absolutely correct in nailing some things down in that nobody wants to pay their "friends" all that much!

Sorry, I should have been more clear on what I meant. I don't think I would stress too much on the minimum order deal, however. Unless I was having to make a specific color, or there was a unique packaging ordeal.

[clonefan80]

Gotta tell ya i've been doing trade shows and wholesale now for 6 years and i've yet to see a contract signed. Now terms are different and they can be put on an order form. Terms such as return policies, breakage and so on. If your doing a special order you usually agree on those upfront. I am paid at the time the order is placed unless I have them set up on a Net 30. I do a have mininums but that is stated on my brochure. Here is probably what you are looking for, i have this on my invoices:

$25 charge on returned checks

All merchandise shipped UPS

Damanged merchandise must be reported to us within 5 days and left in original carton.

No returns without prior authorization

No COD

You can alter this to fit your needs.

[CatlinPM]

Ok let me rephrase this than, I would like to have a piece of paper laying out my terms where they may or may not sign at the bottom. I'm just not sure how it should be structured... I'm really just wanting to see what other people have done so I can make sure I'm doing it right. I know that it's a requirement to have either the other persons tax id number or a copy of their license for wholesaling purposes right? Isn't that something you would want them to put on paper along with their business name, location etc....? I guess I just assumed that if they were already filling out this info, signing at the bottom would be no big deal? I guess I'm just really not sure what most people do, and I want to make sure that these more experienced retailers i'm dealing with don't laugh their butts off at me

[Tizimarezie]

I was under the impression that when selling wholesale, it is desirable to get the buyers tax ID number so that they don't have to pay tax to you for the product. Is that correct or is this just another option?

Thanks for this thread. I need to get my facts fine tuned, also.

[Chickie1st]

Wasn't there a Sticky up there with Wholesale pointers?? Or am I going nuts?

I think this is it....

http://www.craftserver.com/forums/showthread.php?t=21339

[Karen B]

I have a little form for wholesale inquires that I ask people to sign before I give them my price list. I have one wholesale account that likes to push my buttons, wanting a votive sample of every scent I make, asking if she picked up the order could she only order a few items....(you get the idea)

On my price sheet I have my terms and conditions but because of her I also have all inquiries sign this paper before they get my price list. I state on the very top that this is NOT a contract, just that they understand my conditions and agree to them.

I state they are responsible for collecting sales taxes, my private label options, minimum orders, shiping and pick-up options, payment terms, lead times, and since I do like to give out samples but will not make up one sample of every scent I make I state how many free samples they can get per order, and I also offer a sample pack they can buy if they want more.

hth,

Karen B

[sockmonkey]

Catlin,

Most wholesalers will ask for a copy of a buyer's tax ID, or if they order online they have the buyer fill out the standard questions--name, address, shipping address, number of years in business, and their tax ID, and they may or may not request that the tax ID be faxed to them before they share pricing info or allow them to buy off of their site.

Typically, an order form will serve as your contract--it is an agreement to buy/pay. Some suppliers choose to have a copy of their policies printed on the back of the order form and use a 2-part form so that the buyer has a copy and you keep the original.

It would be pretty unusual to be required to sign a contract that merely explains your policies. I would have serious questions about a supplier that presented me with such a document.

A basic wholesale policy may include such information as:

Buying wholesale requires a valid copy of your tax ID

Minimum opening orders are $$$. Reorders are $.

Freight terms

Credit terms (if any)

Type of payments accepted

Return/replacement policy

Special order policy

Minimum quantities per item

Sample policy (if applicable)

Pricing discount (if applicable). Some suppliers will offer discounts for the more a customer buys to encourage larger purchases. As an example: Buy $500 in merchandise receive a 5% discount. Spend $1,000 and receive free freight.

If you've already made a draft of your policy I would be happy to look it over for you if you like. Just send me a PM.

[clonefan80]

I understand you not wanting to look like a "newbie" to your retailers, been there done that. As for a Tax ID, I always get a hard copy of it from them before or when the order is placed. At the trade shows most retailers carry copies of their Tax ID's with them, some just give your their number. If they do that I put a self addressed envelope in their order so they can send me a copy. I have a file for Tax ID's copys. And like sockmonkey I have mininums which include how many scents per case, dollar amt minimums and prices which are on my brochure. I can usually ship within a few days except during trade shows, I just let them know approximately how long they can expect, they are fine with that. Most retailers expect at least a couple of weeks or more for shipments and plan for it when they order, they are pleasantly surprised if it arrives earlier. I have a 2 part order form I take to tradeshows otherwise most retailers prefer to call and place their order. Some will email or fax but I find most like to talk to you. I don't offer pricing discounts as I feel my prices are already the lowest for any dollar amount you purchase. Since I double box (candles) and ship in a large box I have a minimum purchase amt that also fills up that box so they also get the most for their shipping price (I hope I explained that good enough). As for payment, I get their CC (which is usually how all my accounts pay) at the time they order. I only have a few local accounts that pay with a check that they bring when they pick up the order. I have had retailers pay me with a check and questimate extra for shipping when i'm at the shows, thats not a problem either since I just deposit the check and it has plenty of time to clear before the order is ready to ship...actually I love that because then my merchant fee is lower. So really the money exchange is pretty seemless since most everything is upfront. I do have a couple of large accounts that pay Net 30, never had a problem with those either. If there are any extra terms not addressed in my brochure the retailer will usually ask. There are times when I come across something new and wonder how other wholesalers handle it and I just ask them when I'm at a tradeshow...in general most people are great, have I had a few people like karen b states "basically people who want something for nothing" oh yeah, but if you just state your policy and then be quiet they usually quit asking. I had a guy stop by my booth and tell me he could get those size candles for almost half what my wholesale price is, I said well then you better keep ordering from them...those are the people you don't want as customers anyway.

You can make business as simple or complicated as you want. After some trial and error you will find the path that works best for you...but keep asking those questions. Good luck

[evolvetoday]

Check your e-mail I just sent you a copy of my terms and conditions. Hope this helps.

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