Selling

[scottief]

So we have been giving samples out to a lot of people and the all love it. I have about 4-6 people who want sell our soaps. If there are other forums on this point me in that direction. Ive looked but haven't found them.

My question is sell wholesale or commission? The one guy I took some to today said he would only do wholesale. When you do whole sale do you tell them they need to sell it at a certain price? I only ask this because if you have it in 4 different stores and they all sell it for different prices, then if someone sees it in the different places won't they wonder why?

If you do commission what rate is a reasonable?

 

[OliveOil2]

This is just from my personal experience, I would rather wholesale any day than consingment. If you have a business that wants to wholesale it is paying you up front, and not waiting for the merchandise to sell. I think this is the best way to pump money into your business for the supplies you will need. The selling price would be up to him, and his worry about the competition. You will need to give him a minimum order amount and of course cost per bar. There was a great article on selling wholesale on the the Modern Soapmaker website. It even had sample line order sheets, hope the article is still there, the site is going for paid membership, and there isn't as much available, but I think this article still is.

 

[OliveOil2]

I checked to see if the article was still there and it was difficult to find so here it is:

http://www.modernsoapmaking.com/reasons-to-wholesale-handmade-soap/

Hope this gives you some more answers.

 

[The Efficacious Gentleman]

I would also go wholesale. Prices at the end are variable in all things - go in to a few different supermarkets and look at prices for things. It's not up to the shops to set the retail price.

Don't forget, your wholesale price is all costs x 2. That's including your time taken to produce the soaps, overhead for process and all that jazz - not just ingredients.

 

[scottief]

Oliveoil2....Thanks, thats a great article. What if I went to a store and they wanted to do the consignment. Would you still do it, or would you walk away until you found a wholesaler? The guy I went to yesterday said he would only do wholesale, which by this article is exactly what I should do.

 

[shunt2011]

I have one consignment and two wholesale accounts. My consignment I have been in for over a year now and it's worked fairly well for me. The take responsibility for all damage and if any theft were to occur but hasn't. They are a small artisan market with a pretty good selection of items. They are a young couple who make candles and are trying to build a larger storefront. They were the best set-up that worked for me. It's a 60/40 split. I have picked up other customers just being there. They do sell my products for more than I do at my markets. It's certainly something you have to take a close look at and make sure the contract reflects what you have in mind.

 

[The Efficacious Gentleman]

Aye, I didn't meant to imply that if I had the choice between consignment and nothing that I would just walk away - but if someone wanted to buy wholesale, I wouldn't worry about getting them on to consignment.

If consignment was the only option in a location, I would consider it, naturally.

 

[OliveOil2]

Shunt2011 brought up the possible risks for consignment. I think that I would only do consignment if I had a location that I felt had potential to turn over product, and of course the split being agreeable. I think of it this way, the soap sitting on their shelf is not available for you to sell elsewhere. So I try to think of how much inventory I have on hand, if I have plenty and don't have any events coming up I am more willing to part with my soap.

 

[new12soap]

I would personally prefer wholesale, but if consignment is something you may be considering in the future with other retailers, Shari brings up some excellent points.

Make sure it is clearly spelled out who will take responsibility (pay for) any damaged or stolen merchandise.

Who collects and pays the sales tax? IMO it should be the retailers responsibility, but make sure it is spelled out clearly in the agreement.

How often will the seller pay you your share? Every time there is a sale? Once a week? Once a month?

Make sure you do your research thoroughly and put EVERYTHING in writing!

 

[Lindy]

Personally I won't do consignment as it is my money and product that is tied up. I prefer to sell at proper wholesale and if that is not acceptable to the prospective customer then I will walk away.