selling question

[momtohaley2004]

My husband's close friend owns an automotive repair shop. My husband approached him about putting my product in his shop and he had no problem with it and was willing to buy some but not a whole lot just yet. He knows my products sell as they sell in a similar business in the same town. Hubby told him that for the first month we would put them there on consignment basis so he could see how well they do but that he'd have to talk over profit sharing with me. So, here is what I was thinking....we won't be doing candles at first just air fresheners being it is a car repair shop. I sell my car air fresheners wholesale at 1.50 each and retail for 3.00 each. So I was thinking since i'm assuming more of the cost this way (if someone shoplifts, etc) and more of the risk, that we should do a 60/40 or 70/30 split. Instead of getting 1.50 off each as he would if he sold them himself and bought retail, offer him 1.00 each unless he buys them outright? What is thoughts on this? Personally I'm not much of consignment but hubby is trying to prove a point to the guy w/o the guy having to front money in the beginning.

[funkymonkey66]

Wholesale prices are for people who pay for allot of product outright.

If anything you tell him how much you want per item and he tacks on 20- 30% above that price. It could be your retail plus 30% if you want.

I don't do consignment, I personally think it is a waste of time and too much of a risk. I have had some product that didn't sell at the end of the season and you should have seen how it was returned to me! Dirt and dust in the jars and stuck to the wax, faded on one side. Finger nail digs. Who would want to buy that?

This was a friend too so you know it goes without saying, never mix business etc.

I think you would be better off giving him 10. See how they do and if he wants to set up a wholesale account then great.

[sockmonkey]

I don't completely understand why you're talking about doing consignment when the friend said he was willing to buy some. How much is "not a whole lot?" Are you talking 10, 25, or 100?

Instead of dealing with the hassle of consignment, I would sell them to him for $1 each since he is a friend. I would make sure that he knew you were offering him a special deal just to see how they sell, and with his next order the regular rate goes into effect.

Perosnall, since he is a friend I would not sell him any to begin with. I agree that I would simply give him 10 or 12 to start. He could give them to customers who would then see your website or contact information on how to buy more. Hopefully, he will see how much customers enjoy the free air freshener that he will decide it's a good investment and buy them in bulk from you. Air fresheners are so super cheap to make, it just seems ridiculous not to give some away for free as a goodwill gesture to get the ball rolling--especially when the person is a friend who probably doesn't expect or need to make money off of a $3 air freshener, but is really only trying to help you out.

[OverSoyed]

Well Said!

I don't completely understand why you're talking about doing consignment when the friend said he was willing to buy some. How much is "not a whole lot?" Are you talking 10, 25, or 100?

Instead of dealing with the hassle of consignment, I would sell them to him for $1 each since he is a friend. I would make sure that he knew you were offering him a special deal just to see how they sell, and with his next order the regular rate goes into effect.

Perosnall, since he is a friend I would not sell him any to begin with. I agree that I would simply give him 10 or 12 to start. He could give them to customers who would then see your website or contact information on how to buy more. Hopefully, he will see how much customers enjoy the free air freshener that he will decide it's a good investment and buy them in bulk from you. Air fresheners are so super cheap to make, it just seems ridiculous not to give some away for free as a goodwill gesture to get the ball rolling--especially when the person is a friend who probably doesn't expect or need to make money off of a $3 air freshener, but is really only trying to help you out.

[momtohaley2004]

Well to answer a few questions.....I'm talking like he said he'd buy 5 or so...yes, 5....that doesn't even showcase the product well in my opinion.

Secondly, after thought and consideration I told hubby I don't want to mix business with his friendship. Thus, I'm probably going to pass on the whole thing. A few bucks now isn't worth a lot of disappointment/heartache later over mixing business w/friendship.