# Bummed, but definitely learned something for next time!



## AshleyR (Sep 29, 2009)

So..... I didn't get the wholesale account I've been talking about.  For the motel room soaps.

I'm disappointed because it was my first "big" opportunity, then again I'm somewhat relieved as it turned out to be quite a large possible order, and I think I may have undercutted myself on the quote.

I sent three samples to the lady with three different label designs - two of which were private label designs with her company logo. Took me an hour or so to do those. I let her know that she was not at all limited to the scents/colours I sent - that we could chat more about those options and I could customize something just for them. She was very happy and interested all along. Told me she LOVED the samples and the other products she bought from my website.

She asked me if I could cut the bars a wee bit smaller (I sent her 1.5 oz samples, and she wanted 0.75) and if they would cost less. I had quoted her .54 cents/bar for the 1.5 oz ones, wrapped (with my label. She previously declined the private label option which was about .15 cents more per bar). The cost of ingredients really wasn't the main reason for the cost of the soap, though - I factored a lot of the cost on the time it would take me to make, cut, and wrap 1000 tiny soaps. So - when she asked for the smaller bars, I had to tell her they'd cost the same as the 1.5 oz ones, because they took just as much work to make (and the difference in cost of ingredients wasn't much).

Sooooooooo, she very kindly emailed me back today and told me that while she loves the soap so much, she is having a hard time convincing her husband to pay a little more than twice as much for my soap as they're paying for commercial soap now (they pay .20 cents/bar). :\

I had thought about letting her know that I would cut back the price .5 cents/bar, just to get the sale, but I didn't want to seem desperate. I also thought about trying to educate her on all the benefits of handmade soap, and explain to her WHY mine are twice+ the cost of the commercial bars she buys now, but I didn't want to come across as pushy. I always hate that as a customer. I did send her a brochure explaining all of that with the samples anyway, so I just let it be.

I'm actually surprised and happy that I stuck to my price. I always, ALWAYS undercut myself when it comes to selling my things (can't count how many wedding cakes I've done for FREE, by accident), so I feel good about letting this one go. I'm sad that it didn't work out, but I feel confident in my price and am not budging! If anything, I will probably charge a bit more to the next customer!

So, bummer, but oh well.... live and learn! I learned a lot during this experience and will be able to handle future wholesale inquiries in a much more confident and organized manner! If anything, I got a new customer from this experience (since she said she would buy soap for herself from me), and that's better than nothing!


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## heyjude (Sep 29, 2009)

Ashley,

You did the right thing by sticking to your price. And who knows where this might lead in the future? A contact is a contact.

Disappointed for you, but your products look so nice it can only be a matter of time until another opportunity like this comes along.   

Jude


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## Tabitha (Sep 29, 2009)

She is probably getting $300.00 a night per room. She _ca_n afford .50cent soap. Sounds like she would have been a nightmare to work for in the long run. You are probably very lucky you did not get the account.


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## SilverMaple (Sep 29, 2009)

Good for you.  I think you did the right thing.


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## AshleyR (Sep 29, 2009)

Tabitha said:
			
		

> She is probably getting $300.00 a night per room. She _ca_n afford .50cent soap. Sounds like she would have been a nightmare to work for in the long run. You are probably very lucky you did not get the account.



Yeah, they have a lot of extra "amenities" in their rooms too - I know she spends a lot on little gadgets like rubber duckies on her tubs and board games in every room, etc. etc. So, I know the money is probably "there". My guess is she got a little too excited about the possibility of having private label soaps in the beginning and didn't really consider the cost seriously until it came down to actually placing the order.

Kind of a waste of my time/efforts, but I did learn quite a bit from this for next time.


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## xyxoxy (Sep 30, 2009)

It sounds like you both learned something so even though it didn't work out the way you hoped... it wasn't a total waste of time.

I have to wonder though... what sort of volume does she do that an extra 25 cents per bar makes all that much difference. If she counts the bars of soap she goes through in a year and multiplies that by 25 cents... it COULD sound much more reasonable than "a little more than double...".

Is there a way you could do a version of the private label (perhaps with your weblink as well) for close to the same cost as your own label? That way she would have more of an incentive and you would not be undercutting yourself.

I understand it may already be decided... but it's just something to consider in case it comes up again.


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## Rosey (Sep 30, 2009)

awww well that's too bad. At least all was not lost and you learned something. I'm sure the next time, it won't take you as long to choose scents etc so all in all, a good outcome!


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## ChrissyB (Sep 30, 2009)

Her loss Ash!


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## Sunkawakan (Oct 1, 2009)

xyxoxy said:
			
		

> Is there a way you could do a version of the private label (perhaps with your weblink as well) for close to the same cost as your own label? That way she would have more of an incentive and you would not be undercutting yourself.
> 
> I understand it may already be decided... but it's just something to consider in case it comes up again.



I totally agree.  If I were  you, I'd make a counter offer - letting her know that you really want to provide her with a quality product and how it would enhance her business.  I wouldn't give up quite so easily.  And, if you HAVE to, tell you'll cut your price, but only by a few cents on the pound (NOT on the bar and not below your profit margin) because you respect her and would really like to do business with her.  Let her know that you'd like to be part of her team, not just a supplier and that you can easily (I'm suspecting) do special soaps for special occasions and/or for different rooms in the hotel for the same price - say a special soap for the hot tub room or fancier molded soaps for the more upscale suites and special wedding soaps if she has a bridal suite.

All is not lost - take the lessons you learned and go find a different hotel - there are lots of them out there.  You've got the knowledge now, now all you have to do is use it and you can do that - you're smart.  Marketing is the worst part of any business, I personally hate it which is why I'm stalling on opening a b&m store.


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## AshleyR (Oct 1, 2009)

Thanks Sunkawakan.

I did tell her if she ever needs special soaps for her suites or for wedding night/honeymoon packages, etc. to let me know. I also do baskets with other B&B stuff, and she knows that too.

I also asked her if she'd be interested in a small display (maybe 10 bars or something) for her front desk area to sell to the guests as souvenirs (private label). I gave her a good price on those but she didn't bite....

One of the main reasons I didn't push the sale when she declined was because I kind of low-balled my original price to begin with. I didn't really realize until after, and then was kind of dreading having to make and wrap thousands of tiny soaps for little profit. While I was sad that it didn't work out, I admit I was somewhat relieved that I didn't have to do that! My fault, but I learned a lot from this for next time.


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## Sunkawakan (Oct 1, 2009)

I wasn't trying to be mean or tell you what to do, I sincerely apologize if it came across that way.  I must admit, I don't blame you for not wanting to wrap all those soaps, I hate that part almost as bad as I do advertising.

I was only trying to encourage you, I hope you'll forgive me.


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## JenniferSews (Oct 1, 2009)

You were smart to offer what you did as a counter, good thinking!  I have lowballed offers for handmade wholesale items.  She ended up loving the product and reordering often.  It was a nightmare and I hated every moment I worked on her orders.  You were smart to trust your instincts.


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## AshleyR (Oct 1, 2009)

Sunkawakan, don't apologize!!! I didn't think your comment was rude at all.... I'M sorry if I made it seem that way!


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## pink-north (Oct 1, 2009)

Good job for sticking to your price. I have the same habit of under-cutting myself. I know you're really bummed about this, but I look at it as a learning curve. One that benefits the SMF community as well as yourself. Please keep at it. I'm hoping you will get another account opportunity soon. And the next time you will have this experience to help you know what to do.


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## rubato456 (Oct 1, 2009)

so sorry to hear you didn't get the contract, but i think you were right to trust your instincts. you learned alot and will be that much more ready for the next opportunity.


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## Manda (Oct 2, 2009)

I'm sorry you didn't get the deal.

I agree with everyone else - it sounds like you did all the right things to get the sale but they just didn't go for it - or haven't decided to go for it yet, I should say, as they could still change their minds at some point!  Probably worth keeping in touch every once in a while to test the waters as they may be open to switching in the future.

Even if you do everything right you can't expect to get every sale. I'm sure more opportunities will come up for you and you'll probably find the process easier next time.

So anyway well done and thank you very much for sharing this with us!


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## twilightluver (Oct 2, 2009)

Ashley- i feel ur pain!! I always did the same thing..If I am not careful,I can easily under sale myself now--  U did the right thing...U never know what will come of it though..She may want you later on down the road!!! 
Anyway,STICK to your guns.. This is a  great business to have,but  can be lost so easily by feeling sorry for people,or  wanting that sale!!
Good Luck to you in the future!!!


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## Bnky (Oct 2, 2009)

Ashley:  I agree with everyone else...you did the right thing.  Your soaps are so beautiful, you are going to be too busy wrapping large bars to waste as much of your time on little bars.  If you do offer her any less in the future, I would say unwrapped.


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