Possible wholesale account

[soapbuddy]

I don't have a contract as that would require a lawyer, but I do have wholesale terms. What is your minimum and minimum reorder? What about turn around time? Are you making your own labels, or will they require you to make them for them? If that's the case, that's more like a private label.

 

[LauraHoosier]

I agree with SB that I wouldn't use a contract that would require a lawyer to decipher. I would have something typed up on your company letterhead as policy for wholesale accounts such as the mentioned Minimum and Maximum allowed on an order say per week or month. Doing this keeps you from being a slave to keeping up with over demanding businesses. That will also secure that your label isn't over saturated in the market which in the end can devalue your work and make it hard to sell at reasonable prices because its every where.

Again, as noted above, make sure you note a lead time - time needed to produce the requested order to the business.

If they want you to use their labels and/or packaging make sure they know they are to provide the labels and packing materials. Its easier then buying it yourself and having them reject your work over and over and over, wasting your time and money because you know they aren't going to want to pay for "substandard work".

Make sure there is an understanding on naming soaps. If they want exactly what you are selling then perfect! If you're willing to offer this option to them where they can have you to create one just for them, even if its down the line 6 months later, then make sure everyone understand who owns the name, fragrance blend and recipe. Some can get sue happy right there calling it "their intellectual property" when you came up with the recipe and all they did was ask for a certain scent, however vague, kind of thing.

Decide if there will be a one time "special order" charge if they want you to use a stamp that is in line with their company name, industry or if they want something special stamped on the soaps. It can also be called a "Set up Fee" in some industries. Covers you if you have to buy a stamp, custom made or not, just for them. Remember if they stop buying from you they will likely ask for that stamp to be handed over. If not, then ask if they want it because they honestly paid for it in the "special order" or "set up" fee.

Brain tired now lol. Haven't used my business law class knowledge in a long time. If I think of anything else I'll add it in a separate post. Hope that helps.

 

[citymouse]

The link below is a decent article on contract basics. While it is helpful to have a lawyer put one together, simple ones stating basic terms and conditions can be put together and signed off by both parties as a piece of paper stating that both parties understand and agree to the terms set forth. If the person is sketchy, get the signatures notarized (if they are really sketchy, don't do business with them

The article goes over other information that is good to include. Contracts are actually supposed to be written in "plain language" meaning that a competent adult can read and comprehend the various sections of the document without a lawyer to decipher. Technically we all deal with contracts all the time and don't even realize it.

When we have meetings with potential new clients, we meet with them and then later send them an email summarizing the meeting along with what we refer to as our contract, sometimes we make revisions and sometimes not. I keep it simple though, about 1 page of so.

You can also find pre-written documents online if that is more of a comfort zone for you.

http://www.entrepreneur.com/management/ ... 75238.html

Good luck!