Teach Soap

I am in a quandry of a position. My online business does ok. The orders are fairly steady, they fund my hobby if nothing else and I'm happy with it. The online does tremendous at the holidays keeping me quite busy and giving me extra holiday money - an excellent thing all around. I took on a whole sale account last year and it didn't do much but I learned a lot. I took a new one this summer and the business was very busy most of the summer, its tapered a bit now, but I'm no longer the "new" product there so that's understandable and fine.

I got a chance to show my products to an inn about an hour away for their gift shop. This inn isn't what you're picturing -- its HUGE. 200+ rooms huge. It is the destination spot in its area. "Normally" (the whole 2 times I've done it) I offer my wholesale accounts 20% off retail and they need to order in $100 increments. I don't hold my coffee house to that because I'm in her area at least once a week so I just bring her what she wants. Anyway... the inn wants my stuff. But what they want is a 60/40 consignment (they get 40) and they want a free sample of each product for display. My gut says to thank them for their time but to say we aren't a match right now. But I have this huge nagging feeling that by turning them down I'm turning down a chance at getting my bath cakes into their rooms. Now no one's mentioned buying myself for the inn itself, but that's where I hoped it would go.

What do you think?

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Sweet bathing!
Erin
www.bathcake.com

If it was me, I would do it. If anything else, it will give you a good exposure to people that might not have had handmade soap before. BUT, if it's too much work for you and you might not be able to make as many items as they would need on a regular basis, then I would think about it.

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

Mostly, I make my sales at craft fairs, art markets, and farmer's markets. I haven't started my online business yet. I also have my products in two shops now. They are both a good fit for me and I'm pleased with the sales and with the way they maintain and display my products.

I agree with Soap Buddy, why not give it a try? It will be good exposure for your products and you'll have the opportunity to see if the arrangement will work for you. It will require more of your time and attention in keeping track of inventory, managing your products, determining what sells and what doesn't. And, you'll have to see if there is enough profit margin there to make it worth the time and effort.

I did have my products in a 3rd shop and it turned out to be a nightmare! The shop owner begged me to put my products in her store (on consignment). Then, she ended up being a chronic complainer (wanted me to use EOs instead of FOs, wanted the bars to be bigger, wanted this and that). After a couple of months of this, I was pretty fed up. I popped in one day to check on my inventory and found my poor soaps shoved in the corner in a tiny wire basket. They were covered with dust and cat hair (she allowed her pets to roam free in her shop). It was awful! I packed up my stuff and told her that was it!

So, the bottom line is that some arrangements will work for you, while others may not. You won't know until you try it!

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HEAVENLY SCENT SOAPS

I can't speak from experience selling my soap but the one thing I can speak to from other areas of my life is to be very clear about the terms of the arrangement if it is consignment... and realize that can be a very different thing from a wholesale contract.

I have read a lot about this in terms of planning for my own future in selling my soap and have more or less come to the conclusion that consignment is not for me. If they want it they can buy it, making more money for them selves but assuming (or at least sharing in ) the responsibility for getting it to sell.

This does sound like a good opportunity but be sure you will still profit from it and have an out if it doesn't.

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- Mickey!

My advice? Listen to your gut instinct. We have it for good reason:) Whenever I've ignored mine because of the possibilities I thought there might be, or how good things looked on the surface (turned out they weren't so good) I have always gotten in the soup. Every time.

There's a business principle that a fair deal should be fair for both parties. If you really don't think it's fair for you, I'd take a pass. Possibilities are nice sounding but they don't always pan out. IMO, you need more than a maybe future possibility that hasn't yet been discussed. I don't make business deals based on future maybes. Also, people who try to take advantage upfront usually don't change down the road.

That said, how much negotiation have you tried? Have you tried negotiating a better price? Have you offered them their desired consignment price if they purchase your soap for use at their Inn?

They're in business to make money, not for charitable reasons, and unless you're a charity, neither should you be.

Edited for clarity, typos and to add more.

Consignments can be a real pain. It puzzles me that they too would want to bother with consignment. I assume they have a large gift shop, full of products that they own. I agree, follow your instincts. Everytime I've "argued" with mine, I've regretted it. It's the survival tool we were born with. Having said that, I'd probably argue with myself on this one also. It's going to be great exposure, especially if you have well marked labels, perhaps with your website on them. I wouldn't personally have a problem with 40/60, if the volume is there.
Good Luck!
Barbara at Oasis Soap

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Barbara at Oasis Soap Co.
http://www.oasissoap.com