Wholesale Miminums

[Living Waters]

I sell bath and body products. I have had one wholesale order from a salon. It was almost a $700 order, which is good to me but I'm a newbie so, I'm not sure.

My question is, should I require minimum orders for future wholesale orders and if so, what should that minimum dollar amount be?

[SuzyK]

I used to have a wholesale only scrapbook company.

$700 is an amazing order!

I didn't have minimum order amounts but I did have product minimums. They had to buy 3 of each.

You could also require like $150 for the first order and a smaller or no amount for the next orders.

You can sent up any requirements you'd like to make it worth it for wholesaling. Make sure you require a copy of their business license for tax reasons.

[NaturallyTru]

I, also, have a first order minimum then a lesser amount on future orders. And I have minimums on each product.

I have never received an order as large as $700. Haven't had to think about how I'd handle it.

Possible options:

Ask for a downpayment.

Do the order in $x.xx ($200?) increments. They pay each delivery. That way you can make sure you are going to get your money. I would hate to make $700 worth of product and then have the order not go through.

[sjconner]

When I have had large wholesale orders, I made sure that they paid most of the materials costs up front and the balance on delivery.

Susan

[EnvyCandles]

That is a GREAT order amount!! It really is. I would also require a significant amount of funds up front. Businesses are aware they cannot get terms for credit with a new supplier- they should expect to pay up front for merchandise they order.

I agree with Trudi that you should consider doing increments for deliver/payment- just make sure you can deliver what you say you can! Good luck and great job!!

[Living Waters]

On that wholesale order I required 60% up front and the balance was due on delivery. It worked out great.

Edited May 3, 2011 by Living Waters

[Living Waters]

Thank you ladies for all of your help. There is a chance that I might be selling product wholesale to our local Whole Foods store. I would appreciate ANY advice on how to work that deal because I don't have a clue!