Bigmoose
Well-Known Member
Do you go POD, 15 days, or payment in 30 days? What is common for soap vendors?
Bruce
Bruce
Wholesale question
- Thread starter Bigmoose
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sygrid
Well-Known Member
Retail and Private Label
If you have time to deal with the accounting and paperwork of giving terms then you can offer them a 2%-5% net 10 net 30 to quicken the payment. If you want to save yourself a lot of bookeeping and having to constantly check to see who has paid and who hasn't, operate on a cash basis. Some buyers cut several smaller cheques.. again, extra bookeeping. You can get bogged down in paperwork and prematurely have to hire someone to handle it. The longer you can put that off the better. See if they "ask" for terms, most buyers are authorized to cut a cheque within a couple of days. If they don't ask you are under no obligation to offer, many companies operate with Terms being cash. If they do ask, the acceptable explanation for not having Terms, is: "Unfortunately our accounting dept is not set up for terms at this time, but we are able to offer you a"Guaranteed Sale" until we are.
The product is paid for upon delivery and you agree to refund the balance of product that isn't sold. There is usually no time limit on this type of sale. They are testing the market in good faith and are at no risk, so buyers love it. Even small pharmacies can cut a cheque for 2 - 3 hundred dollars for product. Make up an "introductory order" for around $250.00 based on wholesale price not retail. Stores work on 'discounts'. YOU are the one who decides the SR 'suggested retail' and they will ask you for it so be ready. If you fumble you'll lose ground and it will cost you. Don't go into the store you want to be in the MOST - FIRST. Go trip over your tongue in lessor stores till you get it down. Most stores work on a 35 - 40% discount from manufacturers SR. If this is a store you really want to be in adjust your pricing and offer 50% discount.
And, stay on topic when you are in there. Buyers don't have much time to chit chat. They will have sized both you and the products up within the first 5 mins. If you present well you will get a chance to have the product prove itself.
It's a bit of a white knuckler the first few times but it gets easier.
Good luck!
If you have time to deal with the accounting and paperwork of giving terms then you can offer them a 2%-5% net 10 net 30 to quicken the payment. If you want to save yourself a lot of bookeeping and having to constantly check to see who has paid and who hasn't, operate on a cash basis. Some buyers cut several smaller cheques.. again, extra bookeeping. You can get bogged down in paperwork and prematurely have to hire someone to handle it. The longer you can put that off the better. See if they "ask" for terms, most buyers are authorized to cut a cheque within a couple of days. If they don't ask you are under no obligation to offer, many companies operate with Terms being cash. If they do ask, the acceptable explanation for not having Terms, is: "Unfortunately our accounting dept is not set up for terms at this time, but we are able to offer you a"Guaranteed Sale" until we are.
The product is paid for upon delivery and you agree to refund the balance of product that isn't sold. There is usually no time limit on this type of sale. They are testing the market in good faith and are at no risk, so buyers love it. Even small pharmacies can cut a cheque for 2 - 3 hundred dollars for product. Make up an "introductory order" for around $250.00 based on wholesale price not retail. Stores work on 'discounts'. YOU are the one who decides the SR 'suggested retail' and they will ask you for it so be ready. If you fumble you'll lose ground and it will cost you. Don't go into the store you want to be in the MOST - FIRST. Go trip over your tongue in lessor stores till you get it down. Most stores work on a 35 - 40% discount from manufacturers SR. If this is a store you really want to be in adjust your pricing and offer 50% discount.
And, stay on topic when you are in there. Buyers don't have much time to chit chat. They will have sized both you and the products up within the first 5 mins. If you present well you will get a chance to have the product prove itself.
It's a bit of a white knuckler the first few times but it gets easier.
Good luck!
If we are talking about the US, 50% discount (2x markup) is standard & expected. It's the norm from the world trade center to your local door to door vendor. Many product alread have the MSRP printed on them IE books jackets, which is 2x wholesale costs.
The exception being parishables, IE flowers, etc, then the markup is likley to be 3X to cover a certain % of spoilage.
I think what is common is pre-payment by credit card. That goes for soapers, and vendors in general unless you are flush with money and can afford to go without payment for your goods for 15-30 days. POD is basically unheard of in the business world anymore. With the economy the shape it's in, and one gift shop closing after another, I think it's ridiculous to even think about offering terms, especially if you are just starting out.
Bruce I can only share what I do. I require 50% at time of order and balance prior to shipment. I also sell my wholesale at 50% off retail. At this time I am not charging for Private Labelling unless there is an awful lot of work in them. If they are wanting custom scents I do charge additional to develop that with them.
HTH
HTH
Bigmoose
Well-Known Member
Thanks everyone!
Bruce
Bruce
