Teach Soap

I own a small business in Hawaii ("LeiMona") featuring different soaps, lotions, creams & Body Butters. I have someone who would like to become a distributor for me but we both have no idea what the average percentage would be, i.e. is it a percentage of the retail price? Wholesale price? etc. Is there some kind of standard agreement we could use? Please help! I'm really stumped on this one and I've looked EVERYWHERE to find something that would pertain to my business in particular. Thanks so much!!!

How much soap or products are you talking about? Will the products be drop shipped, stored somewhere else or stored with the distributor?

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Yea! A response! I am not too sure at this point how much product she would like, however I do know she would like to purchase probably more of the lotions and creams then the soaps. She would purchase and store at her home. My business is small at this point (which is one reason I am not too sure about how much product), we are just trying to establish some sort of price point that would be fair to both parties.

For me, I would not want my products sitting in someone's home for resale, unless they bought them outright. How will they be stored? Are there any pets? You will have no control over them once they are in her home. That could be a liability issue. I would contact your B&B insurance company and ask. Have you thought about doing drop shipping? She would sell, you would give her a %, then send the product from you.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

That sounds like the best idea...but how do we determine the percentage? That's out biggest ?

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Irena
Closed minds are like faulty parachutes; they refuse to open.

What happens if she brings in a new "Wholesale" Client? Does she get a one time fee for the first order or a percentage each time an order gets placed by that particular client?

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Irena
Closed minds are like faulty parachutes; they refuse to open.

That's exactly what I thought. How do you think you would determine the fee?

By the way, you are being a huge help!

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Hi again! Another question has arisen and I am hoping you might have the answer? Does the distributor purchase samples from me for marketing purposes or do I the owner supply them to her at no cost?

Thanks!

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Thank you my new guru!

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Irena
Closed minds are like faulty parachutes; they refuse to open.