Teach Soap

Ok, this is exciting, scarry and confusing all at the same time, but...

I have been approached by someone that would like to put my products in their wellness center. This would be my first wholesale account and I'm unsure of so many things.

I was hoping those of you that have experience with this would be willing to send any advice or suggestions you have. Some of the things are how much do you discount from list price for the wholesale price, do you have minimums they must order. Do you have them pay up front, put down a deposit or just do a net 30? Have them sign a contract/agreement and what things would you cover in that document.

Thanks for any words of wisdom you have, I appreciate all the knowledge you all share - I've learned tons - but looks like I have tons to learn yet!

Thanks
Jan Kelley
Pamper Pantry

_________________
Pamper Pantry
www.pamperpantry.com
sales@pamperpantry.com

When I wholesaled my lotion I did cost X 2 as price. I didn't ask for money upfront I just got paid when I dropped everything off. It's a crazy business and will get you stressed but it's a great opportunity at the same time.

I did have minimums it was min 4 each of the same fragrance, so if they wanted lilac, lavender and mint they would have to order 4 of each. But I got that amount buy my batch size. If I normally made a batch of 8 lotions, I could cut that in half to make four. So I sold in 4-8-12 and so forth. So figure out how many soaps you get with one batch and come to a number that makes sense for you.

Make a wholesale list with your new wholesale prices, your business card, your minimum order requirement and some samples and then just let them come to you. Don't call or check up that will seem desperate, just wait and they will probably make a big order. Once you get your groove down you can go drop off your little "wholesale goody bags" at different shops.

Most wholesale customers will expect a 50% discount from your retail price. Make sure your costs and your retail prices will support that - there's no reason to give products away, or to work for nothing.

Here are some other things to think about -

What is your opening minmum order? How many of each product? Mine are set according to my experiences in selling - I find that full displays sell better than onesies and twosies, so I have orders set up that way. I also keep my batch size in mind - for instance, I wouldn't make people buy a dozen at a time if my molds only made ten bars, ya know? This may not matter to you, but you should give it a little thought.

Can your customers return products? Under what circumstances? What condition do you expect the products to be in? I personally do not take returns unless the product is defective in some way - but I know others do, so think about your policy on this.

How fast is your turnaround, between ordering and shipping? Make sure your customers know what to expect. I find that faster is better - I shoot for 3-5 days. Custom orders take longer, of course.

Do you have insurance that will cover you if you sell wholesale? You really need to have this in place.

Will you do private label work? What about custom products? Exclusive scents or formulas? You don't have to do these things, but you might be asked to do so, so be ready with your answer.

Payment - I generally get payment up front, with deposits required for custom work. Net 30 may be an option for established accounts. My policies are set based on what losses my business can afford. Your personal situation may allow more or less risk.

Contracts - I don't do wholesale contracts, though I know some people do. I just have a terms and policies sheet that goes out with my brochure. It lays out what my minimums and prices are, delivery terms, and what they can expect.

Does that cover it, or did I just cause more questions?

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http://www.magichandsworkshop.com
http://www.magichands.etsy.com
http://www.magichandsworkshop.blogspot.com

Normally wholesale is cost x 2 and retail is cost x 3 or 4 it depends. If you sell a lot of whole sale you may want to match your retail to their retail prices. They will most likely want to double.

If it cost you $1.50 per bar you would wholesale at $3.00 and they would double that and retail your soap at $6.00 . But it all depends on the shop and how they run things, this is just how it usually goes.

Thanks sooooo much for your input, it is very helpful. If nothing else it helped me get focused and not freaking out! It is a good problem to have.

So I will put together a Wholesale plan, pricing, policies and procedures. Then we will see what happens. It will be good learning experience at least.

Thanks Again!
Jan

_________________
Pamper Pantry
www.pamperpantry.com
sales@pamperpantry.com