Sales Rep?

[southernscents]

I believe I have read on here before that some of you have sales reps, right?

I used to sell Avon and one of the former reps ran into me at a show 3 weeks ago and said she wanted some candles. So I sent her a price sheet and a scent list. And also told her this:

I forgot to tell you that you can also take orders and you receive 20% of the dollar amount that you sell in free candles. That is just a thought. I know money can sometimes be tight this time of year. Let me know if you are interested in doing that and I will mail you some info.

This is her reply:

THAT SOUNDS GOOD, THAT WAS WHAT I WAS WANTING TO DO WITH THE OTHER CANDLES PEOPLE, BUT DID NOT LIKE THERE SMELL OR LASTING OF CANDLES.

ALL I WANTED TO DO IN AVON IS TO MAKE AT LEAST 50.00 A MONTH AND THAT WAS IMPOSSIBLE FOR ME TO DO, I WAS SPENDING OUT MORE THAN I WAS MAKING.

I AM WANTING TO HAVE SOME KIND OF MONEY THAT IS MINE INSTEAD OF ASKING MY HUSBAND FOR MONEY, THAT SUCKS.

DO YOU THINK I CAN MAKE ANYTHING FROM IT? if so let's get STARTED WHAT ARE WE WAITING ON,.LOL

SOUNDS GREAT WOULD LIKE SOME INFORMATION ABOUT IT.

Did I word my reply wrong?

I meant for her just to take up an order like 2-3 times a year to get herself some free candles. She took it as I wanted her to sell for me. Should I do this or not. I have never given anyone money before. I have had people take orders and then they choose 20% of their sales in free candles.

What do I offer her if I want to do this? Sorry So long.

Amy

[Lorrie]

You could be honest with her and tell her that at this time you do not offer independant sales rep. postions, or you could bite the bullet and make her your first.

If you are going to make her an indepenant sales rep. I would talk to slow-burn, I believe that she has a done this before. I would suggest having her get a sales tax license, this way you are not responsible for her taxes. She also would be buying the candles from you wholesale.

[slow-burn]

I am not an attorney, nor did I contact one before I did this. However, it did work for me, and my accountant, lol! I am going to give you a few options, and it would depend on what avenue that you would want to follow.

First off, if she is selling, she must have her own tax id. This would make her responsible for collecting the sales tax and turning it in. One less headache for you. If she does not have one, then you in turn are having to claim that income as sales, and collect the tax from her. A major headache (don't ask how I know) And since she doesn't have a tax id, then it gets confusing on if she is an employee or not, and you run into a bigger headache.

If she wants to sell all the time, then the general rule of thumb from my understanding for a sales rep is 10-15%. But they are generally trying to get you wholesale accounts, so this would be of the wholesale price. If this is what you wanted to do, I would recommed checking out some trade shows in your area, cuz they have peeps there that would be willing to do this. Or you could just set up at a trade show yourself, and see how it goes. It is very pricey though. I am going to try to set up for one in the spring, and I sure wish they were cheaper than what they are.

I had a sales consultant for home shows. I gave her the products at wholesale price, and then she resold them. Now, this is kinda sticky too. Cuz technically, I can't dictate prices but I did give her suggested prices. She bought the order forms from me, as well as the catalogs, and brochures. She also purchased all her free gifts for me (I only give out freebies of my products as prizes).

I did start her off a tad higher than wholesale because I wanted her to be able to work her way up. However, this made her think that she would be able to get more consultants "under" her. That then creates a pyramid, and honestly, I am not sure exactly how some of these places do it. That would be something that you would need to definately contact an attorney about.

If she wants to earn the 20% in candles, why not offer her a home show? You take the product, and she plays hostess, and then she gets the free product, depending on her sales? If she really wants to sell for you, then tell her she must get a tax id. Also find out how she wants to sell. Home shows, buisnesses, or craft shops. Make her buy a minimum up front, and then see how serious she is.

I have decided to do mine at wholesale prices, however, they must purchase a "kit" from me. The kit would be for 300.00 or so, and that would have plenty for them to offer at home parties for cash and carry. They would have to place orders with me for the rest.

I would talk to this lady to find out what she really wants. If she wants to make some money, then she would need to invest some money. Nothing is for free, and she should know that. I am finding it difficult for her to want to make the 50.00 a month when you offered her free candles. What made her think that she could make money? I am sorry for the book, I am not sure if I helped or confused ya more, lol! I will help any way that I can, but not sure if it is much value,

[slow-burn]

Wanted to add: If she gets her tax id, then you would need to report everything that she bought from you at the end of the year. That is income for her. You would not be her employer this way, you just report that you sent it to so and so. After she purchases your product thru a wholesale type arrangement, you are then finished with her so to speak. Your job is done. It is a much easier way to work this.

I also forgot to ask ya if you had insurance? If not, I would check into that before I moved ahead to fast:tiptoe:

[southernscents]

No I need this info. I know nothing about this type of thing. I almost think it might be more trouble to fool with that I want right now. I already setup at craft shows and things myself. I am funny about someone else selling my products. Theres another problem. I would have to know that she knew what she was doing.

What is the difference in a trade show and craft show? I have never been to one of those.

[sudsnwicks]

It sounds like she prefers receiving cash to candles. Instead of paying her 20% in candles, is it possible to have her take orders for you and then pay her a 10% commission in cash?

[slow-burn]

A craft show is where you sell to the public.

A trade show is where you sell to store owners so to speak. Or for the purchasing agent for a store. These deal mostly with wholesale orders. I *think* some trade shows may sell to the public, but most that I have checked into only sell to buisnesses. It would be the place that a buisness would go to for products to stock their store with. Some trade shows allow you to sell product that day, and others only allow you to take orders. You may not get any orders at all the days of the show, however, a month or a year down the road, you may be contacted by someone that saw you there, that is interested in your product.

These type of things sound real scary to me, but I am thinking about trying one out in the spring. The organizer that I spoke with, said that they generally draw in around 5000 people. So that means that it that many buisnesses that are looking for new products to carry in their stores. As I said before though, it can cost from a thousand to a few thousand to set up yourself. Unless you would find a vendor that is set up all year around, and they would be willing to be a "sales rep" for your products.

From my understanding, the best way to explain it would be that a craft show is for the public to purchase, and a trade show is for the buisnesses to purchase. HTH, and that I explained it right, lol!

[southernscents]

I get it. I have been to several craft shows this year and have one this month. I wanted to make sure I understood the difference. I am not sure what to do about this chick. I may do the take up and order deal and she can have 10-15% of what she sells and we will see how long she lasts. I did contact her old avon leader and said she was hard to motivate, but she was honest and would pay for her items, she thought anyway.

I will think about it and decide something.

[slow-burn]

How about if you give her a brochure, or catalog with order forms. Then a few samples. Have her go out and place the orders, then turn them into you. Depending on how long it takes you to make the items (or if you have them on hand) you could do this once a week. Say every Friday her forms must be turned in, and then the following Friday, she can come to you (I wouldn't deliver for something like this) to drop off new orders and pick up the finished product from last week. Or she can call you during the week for Friday's orders, just make sure she understands that if she calls on Thursday, that the product won't be availble until the following Friday. You could pick any day of the week.

Have her keep her own order forms cuz she will need them for tax purposes. Have her give you the orders in a group form, x amount of this and x amount of that. If she has all checks made payable to her (it covers your butt, and it can be done once she gets a tax id and has a dba). She will then pay you when she picks up the order. If she has the money from the individuals as the orders are placed (I never have had a problem with this) then she would just keep all of that to give to you, except of course the 20%. So if she sold 100.00, then she would give you the 80.00 at the time the order was placed, and she would pocket the 20.00. If she is real ambitious, have her purchase a few smaller items from you, that she can carry around with her. It would be a small investment on her part, but she would have some items to sell right there if the customer wanted them.

If this works well and she is motivated, then down the road, you could give her *raises* so to speak. Since you won't be doing the wholesale with her just yet, figure out where you want the breaks to be. For example, once she has 1000.00 in sales, you will take her up to 20%, if you started her out at 15%. If she does really good, you could eventually do the wholesale with her. Hope this made sense!

[southernscents]

Wow Slow Burn you have got it together. I need you as a partner to do the business part and I will just make the products . I hate the business part. I wish my mom didn't have to work and she would do that part for me. Maybe someday.

I will think about this and make a deicision soon. I can't leave her hanging.

Thanks so much!!!!

[slow-burn]

Wow Slow Burn you have got it together. I need you as a partner to do the business part and I will just make the products . I hate the business part. I wish my mom didn't have to work and she would do that part for me. Maybe someday.

I will think about this and make a deicision soon. I can't leave her hanging.

Thanks so much!!!!

Actually, I am pretty flighty, lol! I know what needs to be done, or what could be done, but I like to procassinate (sp). I run into the same problem with the buisness part and the product part

Good luck in whatever you decide to do! Taking that first step is always the biggest, but I think that as long as YOU belive in your products, and you let that show, then the rest will follow.......