Help with Wholesale

Soapmaking Forum

Help Support Soapmaking Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

pink-north

Well-Known Member
Joined
Aug 15, 2007
Messages
536
Reaction score
2
Location
Ottawa, Canada
Hi everyone,

I have a situation and need some advice. I have an opportunity to sell my soaps in a local store. I've never really done that before, so how do I go about it.
1. Do I draw up a contract?
2. What should I be asking for?
3. What steps should I be taking?
4. Do I bring my own shelves?
5. What would the contract look like?
6. Do they pay upfront or after the soaps sell?

I know there are more questions I should be asking, but we'll start with those.

Thanks so much :)
 
If it is truely wholesale (50% of retail is standard but not a law), they buy it straight out from you & do as they wish with it. There is no need for a contract, it is like any other sale but they get a discount so they can mark-it up. You should not need to provide shelves, etc. That is their job. If you have soemthing that is fabulous youm want to loan them & want to have that type of relati9nship w/ them, that is up to you.

If it is consignment (30% off retail is standard but not a law), you will need a contract because you have entered into a biz agreement w/ the shop. You are partners so to speak. The shop should have a contract they use but it would also benefit you to have one you can use. They only pay after a sale has been made.

1. Do I draw up a contract?
2. What should I be asking for?
3. What steps should I be taking?
4. Do I bring my own shelves?
5. What would the contract look like?
6. Do they pay upfront or after the soaps sell?
 
This is my consignment contract. You may copy it & edit out the things that do not apply to you.

Consignment Contract
ARTIST: (Name, Address, and Telephone number):




and

SHOP: (Name, Address, and Telephone number):




hereby enter into the following Agreement:

1. Purposes. The Artist appoints The Gallery as agent for the works of art ("the Artworks") consigned under this Agreement, for the purposes of exhibition and sale. The Gallery shall not permit the Artworks to be used for any other purposes without the written consent of the Artist.

2. Consignment. The Artist hereby consigns to The Gallery, and The Gallery accepts on consignment, those Artworks listed on the attached Inventory Sheet. Additional Inventory Sheets may be incorporated and signed into this Agreement

3.Authority of Accepted Artist’s Works. Only Dan or Tabitha Wilkes may accept Works of art for consignment. The Gallery may reject artworks at the Owners discretion.

4. Warranty. The Artist hereby warrants that he/she created and possesses unencumbered title to the Artworks, and that their descriptions are true and accurate.

5. Duration of Consignment. The Artist may request Artworks be returned at any time though the Artist and The Gallery agree that the preferred term of consignment for the Artworks is to be a minimum of 6 months. The Artist does not, at this time, intend to request their return before the end of this term. Consignment shall continue, after the initial 3 months, until the Artist requests the return of any or all of the Artworks or The Gallery requests that the Artist take back any or all of the Artworks with which request the other party shall comply within 30 days.

6. Transportation Responsibilities. Packing and shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from the Artist to The Gallery are the responsibility of the Artist. Return packing and return shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from The Gallery to the Artist within the initial 6 month contract is the responsibility of the Artist. Return packing and return shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from The Gallery to the Artist after the initial 6 month contract, shall be the responsibility of The Gallery.

7. Responsibility for Loss or Damage, Insurance Coverage. The Gallery shall not be responsible for damage or theft of artwork unless damage or theft is due to neglect on the part of The Gallery.

8. Removal from Gallery. The Gallery shall not lend out, remove from the premises, or sell on approval any of the Artworks, without first obtaining written permission from the Artist.

9. Pricing; Gallery's Commission; Terms of Payment. The Gallery shall sell the Artworks only at the Retail Price specified on the Inventory Sheet. The Gallery and the Artist agree that the Gallery's commission is to be 30 percent of the Retail Price of the Artwork. Payment to the Artist shall be made by the Gallery by the 7th of every month, and will include all commissions due for any/all artworks sold.

10. Framing. If the Gallery will be framing the Artwork, The Gallery and the Artist agree that The Gallery's expense will be factored into the retail price and full compensation for framing will be given to The Gallery upon the sale of Artwork.

11. Promotion. The Gallery shall use its best efforts to promote the sale of the Artworks. The Gallery agrees to provide adequate display of the Artworks, and to undertake other promotional activities on the Artist's behalf. The Gallery shall identify clearly all Artworks with the Artist's name

12. Termination of Agreement. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at any time by either the Gallery or the Artist, by giving a thirty (30) day written notification of termination from either party to the other.

13. Choice of Law. The law of the State of Texas shall govern this Agreement. Sincerely, _____________________________________________________(Artist) Sincerely, _____________________________________________________(Gallery) Length of Contract From_____________open_____________To___________open______________ Consented and agreed to: Artist Date______________________________ Consented and agreed to: The Gallery Date______________________________
Consignment Agreement Artworks List
Title/Item/Retail Price
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Artists Signiture______________________________________________Date______________________________
Gallery Owner________________________________________________Date________________________________
 
For people as small as we are, I personally wouldn't bother with a contract. If they screw you, are you prepared to go to court? If not then a contract can only perhaps intimidate them into honoring it.
 
UPDATE!!!!

So I called the store and they said they liked what they saw on my site and I have an appointment to meet with them next week. Yeah!!!! While I was out today I went to a shop this afternoon. The store owner asked me if I sewed for a living I said no, but handed her a business card. She was very interested and asked me for two christmas baskets to put in her store by Nov. 1. :D Needless to say I've been busy. Thanks for all your help and encouragement.
 
Okay, new update. They liked me, they really liked me :D . They said they would probably carry my soap, and they asked if I would also be interested in coming to the store to do a demonstration or talk with customers about the products. So I believe it went well. The whole interview only took 10 minutes, which made me nervous.

They asked me what my wholesale price would be. I got nervouse and blurted out 50%. I guess that's an appropriate rate. All in all it went well. Now I have to finish two baskets for a consignment store for next week.

Thanks again for all the support. It really, REALLY helps. 8)
 

Latest posts

Back
Top