Carla257 Posted April 7, 2008 Share Posted April 7, 2008 I have sent out a bunch of wholesale packages to a bunch of stores and spas throughout the city. There is one MAJOR street that is very popular with visitors and customers from all around, and one of the stores has just contacted me to ask if I would be exclusive to just their store on that street. I have sent out 4 to the spas on that street and 3 gift shops. Should I be just exclusive to 1 gift shoppe and 1 spa. I have 2 separate lines, a spa line and a regular scented line.What ddo you do when you are asked that?Please help!! I don;t have much time before others start calling me for appointments.Thankyou Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted April 7, 2008 Share Posted April 7, 2008 If they are offering you the floor space you need, and are high traffic... I'd go for it.With wholesale, if you have 5 locations that aren't so hot, you have all that inventory sitting around, when you could be selling more at one location that is great. Quote Link to comment Share on other sites More sharing options...
cybersix Posted April 7, 2008 Share Posted April 7, 2008 I don't see why not. I'm not an expert, but maybe it can be good for both, you could apply maybe an additional fee (changing your prices a bit) for giving them the exclusive. Is it the gift or SPA line asking? Quote Link to comment Share on other sites More sharing options...
Carla257 Posted April 7, 2008 Author Share Posted April 7, 2008 the gift shoppe is asking Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted April 7, 2008 Share Posted April 7, 2008 I'd definitely upcharge for exclusive rights to the products... 10-20%. Most companies understand that its win-win. Quote Link to comment Share on other sites More sharing options...
cybersix Posted April 7, 2008 Share Posted April 7, 2008 the gift shoppe is askingso this doesn't prevent you from having candles in a SPA in the same street, since the products are different. And so you could still have at least two shop in the same street.I'd go for it. Let us know how it goes! Quote Link to comment Share on other sites More sharing options...
cmb Posted April 7, 2008 Share Posted April 7, 2008 I agree - you should compensated for you being exclusive to them....don't sell yourself short!If you don't mind me asking...what do you put in a wholesale package? Thanks,Marie Quote Link to comment Share on other sites More sharing options...
Carla257 Posted April 7, 2008 Author Share Posted April 7, 2008 Should I just do a 1 time cash up front for exclusive rights? I'm just asking because my new website will be up soon and i have a wholesle section and all the prices are going to be the same for all stores so they all can order from there. Quote Link to comment Share on other sites More sharing options...
Carla257 Posted April 7, 2008 Author Share Posted April 7, 2008 In my wholesale package i put in...A cover letter, Wholesale Agreement form, Scent list, price list, and order form. I also sent out a free 10oz candle to each of the stores too. I am also going to the city in 2 weeks to have appointments with each store to show them all my scents and products. I have also added that all of April I will have FREE shipping. Quote Link to comment Share on other sites More sharing options...
cybersix Posted April 7, 2008 Share Posted April 7, 2008 Should I just do a 1 time cash up front for exclusive rights? I'm just asking because my new website will be up soon and i have a wholesle section and all the prices are going to be the same for all stores so they all can order from there.I'd make different prices. so you can have a bit of the $$ you "lose" not selling in other shps. just my two cents! Quote Link to comment Share on other sites More sharing options...
cmb Posted April 7, 2008 Share Posted April 7, 2008 Thanks for the tip. You've really put it all together nicely, no wonder you've gotten excellent response.I wish you all the best!Marie Quote Link to comment Share on other sites More sharing options...
bells4shells Posted April 7, 2008 Share Posted April 7, 2008 That's wonderful that they've asked you to be exclusive (esp if they're going to order a lot from you). I totally agree with oversoyed's point on one good store versus a few with product sitting around. And since you do have two lines - one gift the other spa, I don't see why you can't do your spa line with one of the spas as well. This might be something you could outline with the inquiring shop. Best of luck to you! Quote Link to comment Share on other sites More sharing options...
CSAS Posted April 7, 2008 Share Posted April 7, 2008 I would not raise the prices of the products, themselves, but I would make sure that there is a minimum per year in place. Like so much per quarter to keep them exclusive. Or, they have to carry such a percentage of your products. Say, like they must stock 75% of whichever line they decide to carry. This way, they don't order just a few items and they are the only store carrying your product, but choose to only have a few items. If they are forced to carry the entire line or almost the entire line, it is good for you and them.I own a store, and I don't think I would like the raising of the price per item, but I would be okay with the minimum per year or the % of items I had to keep in stock.This is just my opinion as a candle & soap maker and a gift store owner. Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted April 7, 2008 Share Posted April 7, 2008 A 10-20% markup for exclusivity is nothing on paper... but works in the long run. From one business professional to another, it's a smart way to go. Quote Link to comment Share on other sites More sharing options...
bugtussle Posted April 7, 2008 Share Posted April 7, 2008 Be careful that you don't loose all of them. I have never charged for an Exclusive agreement & I don't think I would. I picked the business that had been around the longest & seemed to have a good clientel and she sells a lot of candles; it's been over 4 years. If I had asked her for $ up front, I think I would have lost her. IMHO Carole Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted April 7, 2008 Share Posted April 7, 2008 I wouldn't suggest pre-payment either. Just make sure you have a clear cut agreement. I have a good one on file if you'd be interested. Quote Link to comment Share on other sites More sharing options...
SpaceGirl Posted April 7, 2008 Share Posted April 7, 2008 And keep the option of re-negotiating that condition after the first year. Don't lock yourself into exclusivity forever (or a really long time).And hey-- that's really cool for you! Quote Link to comment Share on other sites More sharing options...
Carla257 Posted April 7, 2008 Author Share Posted April 7, 2008 Oversoyed>>>I am very interested in the agreement, I don;t know how to start one what to put in it, and I need something drawn up within 2 weeks before our appointment. Thank you so much for all your advice!!I also think ordering so much a year and re negotiating after a year is a great idea. Quote Link to comment Share on other sites More sharing options...
Carla257 Posted April 7, 2008 Author Share Posted April 7, 2008 OH and that same lady owns a flower shop and she is also interested in putting them in their as well. So how would I charge that? Still give the exclusive price for both stores? Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted April 7, 2008 Share Posted April 7, 2008 Send me a PM... I'm doing the dishes right now...lol... but ill get it to you when im done.Oversoyed>>>I am very interested in the agreement, I don;t know how to start one what to put in it, and I need something drawn up within 2 weeks before our appointment. Thank you so much for all your advice!!I also think ordering so much a year and re negotiating after a year is a great idea. Quote Link to comment Share on other sites More sharing options...
southern.scents Posted April 8, 2008 Share Posted April 8, 2008 Here is what I do. They get exclusivity if they are a store that can meet my minimums per year, they are not a chain of stores (runs into problems IMO), they have a large clientel, they have a nice and or busy location. I also put in my agreement that the it is at my discretion whether or not the contract is renewed. Another thing you might look into is having different levels of wholesale options. I have a few levels with the lowest level getting no exclusivity, a low MOQ and YMOQ, but they get the highest(most pricey) of my wholesale pricing. The highest level gets exclusivity at my discretion, the largest of my MOQ and YMOQ but the lowest of my wholesale prices. I guess it really just comes down to what works for you. Quote Link to comment Share on other sites More sharing options...
bugtussle Posted April 8, 2008 Share Posted April 8, 2008 Are you guys selling candles, commodities, or oil??? Those are pretty big terms for handmade candles. :tiptoe: :tiptoe: Carole Quote Link to comment Share on other sites More sharing options...
southern.scents Posted April 8, 2008 Share Posted April 8, 2008 I sell candles. I guess if people are willing to abide by the terms and I continue to have wholesale accounts, my terms must not be too bad. That can't be as bad as Yankee's. They are required to have their display and what, like 3-6 of each product/scent???Those terms are to help protect me and my business. I'm not looking to stick my products in some hell hole that will buy $50 dollars worth of stuff in a year .... Quote Link to comment Share on other sites More sharing options...
thesoapbox Posted April 8, 2008 Share Posted April 8, 2008 Are you guys selling candles, commodities, or oil??? Those are pretty big terms for handmade candles. :tiptoe: :tiptoe: CaroleThose aren't big terms if you are wanting to make some money off of what you do. Why sell yourself short? There is nothing wrong with expecting minimums, in fact that is the crux of wholesaling. No sense in wholesaling if it ends up being more work and you aren't getting paid decently for it.Angi Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted April 8, 2008 Share Posted April 8, 2008 I sell excluvise to a store on main street of one of the towns listed in the top 100 places to shop in the Midwest, during the summer tourist season. My pricing is 15% more than usual wholesale. My first order with this store was over $2500,,, and from May until Octobee they order at least $800 a month. (the remainder of the year they are closed)My minimum for re-order a month is $500. This agreement has worked very well for both of us... I also supply all their samples at no cost, plus I provide delivery. (they are only 20 minutes away). Quote Link to comment Share on other sites More sharing options...
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