sale or return v sale with invoice

[Ishbel]

Hi there, long time no speak! been so busy. Ive got a question for you all, if you can help Id be grateful. Im selling to shops now, I dont do wholesale as Im not big enough but I do offer a batch discount, an increasing percentage discount for multiples of 12 bars at a time. This works well. However I am increasingly coming across shops wanting to stock my soaps but only on a sale or return basis. I find this difficult as I am making the capital outlay, taking the risk, providing the soaps and displays but only get paid after sales have been made. Other shops I supply to order the soaps they want, I invoice them, they pay - easy. Has anyone got any ideas how to deal with this? Is sale or return the norm in this kind of business? confused.com! :? :?

 

[Tabitha]

It's called consignment & that is pretty standard when you can not offer wholesale prices. The shops do not want to get stuck w/ product they can not sell if they did not get a good wholesale price from you to start with. They are willing to take that risk when your prices are wholesale, but not at a 'discount'. They can not afford to.