How does it work to sell soaps at a shop?

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bear

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I have a shop that is interested in selling a couple of soaps of mine but I'm afraid to return her call because I don't know if I need to negotiate things like percentage of sales, etc!

When a boutique is going to put your product in the store do they decide the pricepoint? Do you sell them as how much you sell them for? And do they get a percentage of the sale?

I am freaking out because right now I just make my soaps when people ask for them...like one at a time!! :wink: But, how many would this shop think I would give them or what is the normal to provide.
 
There are 3 basic ways to sell through a shop, wholesale, consignment, space rental.

Wholesale: You sell a bulk amount of product directly to the shop at a discounted price & they then do want they want w/ it. The national standard discount for wholesale in the US is 40% off retail. You would need to set a minimum purchase amount for a shop to qualify for wholesale, like a 40 bar minimum, etc. You give them 1/2 off retail because if the items do not sell they are stuck w/ them. They have taken the risk.

Consignment: When you consign, you leave product at a shop & when it sells you split the sale price. You, as the crafters, should get a larger % than the shop owner, IMHO 30/70 is fair. You take a larger % when an item selld, because if they do not sell, you are stuck w/ them. You have taken the risk.

Space rental: This is when you make a monthly payment in exchange for an amout of space, 1 couple of shelves, etc. A booth measuring 4 ft x 6 ft may run $25-$100.00 per month depending on the shop's traffic. They should not also take a commission unless it is very small (IE 5%) to help cover credit card processing charges on your sales, etc.
 
Thanks! That is really good advice! I bet they are thinking more along the lines of consignment.
Might be a silly question but when you consign with a shop, is there some sort of letter of agreement or is it the honor system?
 
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