Reselling without permission?

[DeeAnna]

"...It is the vagueness and the changing story that makes me uncomfortable. While I understand that I have no control over what she does with the soap after purchase, the thought that she might be reselling and making money off of my work is deeply annoying, especially if she's not being straightforward about what she wants to do....."

Many of my clients never explain what they're doing with my products. Why should they? It is truly none of my business. A person who has bought and paid for a product has legal ownership of said product. It is perfectly legal and appropriate for her to do whatever she wishes with her property, including reselling, without my permission or knowledge.

Some of my clients resell at a handsome markup of my price -- and others choose to give the product away. I set my prices fairly for my business, so I am properly compensated. If I don't feel my prices are fair to me, I raise them. I am not resentful of someone who can resell my product for more, even a LOT more. More power to them being able to market my goods to a well-heeled clientele. And more power to them coming back to me for more. In the end, we are both benefiting.

I'm so very puzzled by the angst being expressed. I suspect over a decade of running a small biz dealing with all sorts of clients, big and small, retail and wholesale, has given me a broader point of view.

 

[DebiB]

"...I'm so very puzzled by the angst being expressed. I suspect over a decade of running a small biz dealing with all sorts of clients, big and small, retail and wholesale, has given me a broader point of view.

So very well said, DeeAnna. In my line of work, we call them brokers. They are able to offer a package of services that includes my product. They mark up the product handsomely.

They can turn to someone else, who would *happily* supply them - and grow - their sweet piece of business. They choose my company for Quality-Service-Price...the magic trifecta!

 

[SomethingGoodAustin]

I'm so very puzzled by the angst being expressed. I suspect over a decade of running a small biz dealing with all sorts of clients, big and small, retail and wholesale, has given me a broader point of view.

Hmm. Seems like quite a leap from personal annoyance and caution to "angst," but perhaps we have different definitions of that term.

At any rate, having expressed my gratitude to all who contributed their much greater experience--as well as stating my willingness to consider multiple options that might preserve both my brand and a potentially lucrative business relationship--I'm going to duck out of this discussion and go back to my day job for now. Thanks very much for everyone's helpful advice. I appreciate it.

 

[claudep]

In Canada, it depends on the province. Since it falls under civil law for contract and liability, all the province and territory withthe exception of quebec use common law which is very similar to us law. Quebec has a civil law regime which is different.

If you look at damage, it may depend on so many factors what she does with the soap. If she use it do clean dogs she is grooming, there is no possible liability.

If she were to resell the soap under a new branding it could be misleading, but by doing so, she would be assuming the risk of the sale.

If she sale for a different price, what you could want is to have a final price agreement which would be the price to be sold to client.

However, if you really want to approach her about wholesale, be ready to get paid less. Normally wholesale is for less then the retail price.

If it where me, she is giving you money for the soap which you deemed to be sufficient profit for your work. If not, you should consider adjusting your pricing. Even if she resale for 20x your price, the fact that she has an exclusive business and relationship with people is what is selling your soap. I do not know how you package and if you have any branding, but it is highly likely that she would not be passing off your ware has being made by her. She would have to submit a form to our health department, and could be liable for damages if she did that.

Ask some questions and see if you can have a more regularized delivery schedule such has monthly shipment. Profit from this sale arrangement to be able to grow your business. From what i get, it is around 25 bars max to date. Not a high volume. Take the money and purchase equipment to scale your batch size and be ready to fulfill this on an ongoing business. Also, i would be careful not to anger a good returning client, be gentle and offer more or even a promotion to ensure she will be a recurring customer.

If i where selling soaps, i wouldn't be asking the client what they are doing with it. Take the profit be grateful for the sale and grow into making a better website, logo, branding publicity, soap making equipment, batch size capacity etc. If you stop like this for every order, you will be fretting in your business and not putting your energy into growing, hard to run a business like that, in other words it is a hobby that will forever remain a hobby.

Cheers

 

[pamielynn]

"...It is the vagueness and the changing story that makes me uncomfortable. While I understand that I have no control over what she does with the soap after purchase, the thought that she might be reselling and making money off of my work is deeply annoying, especially if she's not being straightforward about what she wants to do....."

Many of my clients never explain what they're doing with my products. Why should they? It is truly none of my business. A person who has bought and paid for a product has legal ownership of said product. It is perfectly legal and appropriate for her to do whatever she wishes with her property, including reselling, without my permission or knowledge.

Some of my clients resell at a handsome markup of my price -- and others choose to give the product away. I set my prices fairly for my business, so I am properly compensated. If I don't feel my prices are fair to me, I raise them. I am not resentful of someone who can resell my product for more, even a LOT more. More power to them being able to market my goods to a well-heeled clientele. And more power to them coming back to me for more. In the end, we are both benefiting.

I'm so very puzzled by the angst being expressed. I suspect over a decade of running a small biz dealing with all sorts of clients, big and small, retail and wholesale, has given me a broader point of view.

I get what you are saying - I've never questioned a customer on what they intend to do with the products - I hope they are washing with them
My concern with this particular situation is that maybe the customer is reselling as her own soap and I would simply want to know and have the opportunity to approve of it.

I think that unless you are at the point where you WANT to private label, it is upsetting to think that someone is passing off your product as their own. maybe this customer doesn't understand private label and is scared to approach the soapmaker about it, but the conversation should be opened up between them.

Or maybe she's just OCD about washing her dog.

 

[claudep]

Did she state that she had a dog grooming company?