blt212 Posted November 19, 2009 Share Posted November 19, 2009 I need some advice regarding Private Labeling...I've read through the posts and understand the basics, however some other questions.This customer wants no label she will affix her own. She's ok with the warning label with my info on the bottom of the candle. The twist is, she's asked about working on a line for her with several custom oils of her own. Which we all know involves research, development, testing and lots of time. I'm not sure I even want to do this but wanted to ask if anyone else has had experience with this time of situation and how you handled. I would think there would need to be a contract involving labor based on a per hour charge, etc.Appreciate the help... Quote Link to comment Share on other sites More sharing options...
Dustpuuppy Posted November 19, 2009 Share Posted November 19, 2009 With a large enough order and a sizable deposit... <shrug>If it doesn't feel right to you, there's probably a reason. Get enough cash up front to make it worth while.You could split it into smaller orders by doing one or two scents at a time. And all recipes are work product and belong to you. She doesn't get them. Quote Link to comment Share on other sites More sharing options...
SaraScribbles Posted November 19, 2009 Share Posted November 19, 2009 Can't help with this situation, but just noticed that you're in Haddam ~ my sister in law lives there with her family. We visited a couple years ago and it's really pretty! Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted November 19, 2009 Share Posted November 19, 2009 Situations like this can turn into nightmares. Not only do you need to charge for your time, but you need to established how much time will be involved, how materials will be supplied and paid for, the results that can be expected (or not expected), and where liability lies with the creation and sale of the product.Dustpuppy mentioned an issue that is likely to come up--who owns rights to the formula. Professional business ethics would require that if you are keeping the formula that you may not sell it, or any creations derived from it that would compete or cause economic harm to the person you created it for. Of course, there should be a clause that states if she ever fails to pay an obligation with you or renigs on any part of the contract that you reserve the right to sell the formula or any products manufactured using the formula to any willing buyer in order to satisfy her debt.By keeping the formula, that would basically guarantee that she will have to keep coming to you to have the product manufactured unless she decides to switch to someone else and start from scratch, or have it reverse engineered. Which is another thing that you can address--prohibit her from having it reverse engineered, or else required her to pay a particular sum in damages.Did that all of that totally scare you away from doing it?++++++++++++++++++++++++++++++++++++++++++++++++++Buy 2 lbs FO, get 1 lb free is on again in the classifieds!http://www.craftserver.com/forums/showthread.php?t=87535 Quote Link to comment Share on other sites More sharing options...
blt212 Posted November 19, 2009 Author Share Posted November 19, 2009 (edited) She's actually talking about having me use her oil blends to create the candles so is the formula the finished product or her oil blend? I'm really not thinking it's going to go anywhere and you're right, it does seem like a nightmare. I haven't really even gotten into private labeling and I'm really torn on doing that never mind being a mfg of someone else oils, I have enough challenges mfging candles with the oils I use I think she's looking for someone to mfg a smaller qty then what she would be required to purchase if she went with one of the large candle mfg. Sara Scribbles: Thanks for the compliment on Haddam, it is a nice area to live. We haven't lived here that long but I may know your sister-in-law, it is a small town.... Edited November 19, 2009 by blt212 Quote Link to comment Share on other sites More sharing options...
ebcandles Posted November 19, 2009 Share Posted November 19, 2009 I charge $200 per custom request. If they wanted 3 fragrances, that would be $600 total. I would test the oil in all three of my waxes. One soy pillar, one soy container and one palm pillar. I would make two of each candle. One for the customer and one for me. I've been in business a little over six years and I have only had one customer who has paid the $$$$ Quote Link to comment Share on other sites More sharing options...
Dustpuuppy Posted November 19, 2009 Share Posted November 19, 2009 The formula we're talking about is the % of oil, to wax, to vybar...etc.It won't really stop her from going to someone else but it will slow her down.Since you're going to be getting the oils from her, you couldn't be selling anything from the formula, anyway, but it would keep her locked in with you, to an extent.I think I would ask for about 5 oz of each oil for testing, along with a deposit of 10% to 25% of whatever you decide is the minimum order.When I was pouring, I did customs all the time, so it wouldn't be a big thing for me. I'd just be sure to have some cash in hand before starting. Quote Link to comment Share on other sites More sharing options...
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