need a suggestion for selling soaps .

Discussion in 'General Business Forum' started by umeali, Sep 26, 2018.

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  1. Sep 26, 2018 #1

    umeali

    umeali

    umeali

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    Hi dear members I need your expert advice .someone approached me with three options .He wants to launch new soap brand
    1: Buy Raw material from him at very discounted rates .
    2: sell my formula to him so he could make soaps and launch a new hand made soaps.
    3:make soaps for him with the material he provides and charge for making only ...
    I am very very confused as which option is best to be chosen .Looking forward for your precious seggestions
     
  2. Sep 26, 2018 #2

    Lin19687

    Lin19687

    Lin19687

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    Make the soap and sell it to him
     
  3. Sep 26, 2018 #3

    dixiedragon

    dixiedragon

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    Honestly? This guy sounds super sketchy. No offense intended, but why does he need to buy your formula? I'm sure your formula is very nice, but there are hundreds and hundreds of recipes online. Of the 3 options, #3 sounds like it has the least risk to you.
     
    TeresaGG likes this.
  4. Sep 26, 2018 #4

    soapmaker

    soapmaker

    soapmaker

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    Yes, I agree with dixie. # 3 sounds like there would be no loss to you unless he doesn't pay. How about requiring 50% down to make a batch?
     
  5. Sep 26, 2018 #5

    dixiedragon

    dixiedragon

    dixiedragon

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    With #3 - even if he doesn't pay, all you are out is some time, vs being out for a lot of supplies.

    How much is he offering for your formula?
     
  6. Sep 26, 2018 #6

    OldHippie

    OldHippie

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    I don't see where this helps him "launch new soap brand".
    Soap recipes in general are easy to find and develop. Unless there's something really outstanding and unique about your recipes that cannot be inferred from the ingredient list and he want to buy them, maybe he does not have a clue. Grab as much of his money as you can and run before he gets one.
    This may be your best long term option. You want to very carefully decide terms that are in your best interest, because you'll be stuck with them.
    Will you have to pay for any ingredients or supplies for his soap before you make it?
    Will you have to cut, label, and package them?
    Will you be able to continue to sell your own brand? If so, will he supply you at a good price?
    You want to be guaranteed a given number of loafs in a given period of time.
    Price high and negotiate down.
    If I think of anything else, I'll add it later.
     
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