# business ethics



## seaturtle (May 1, 2010)

Today at a craft fair I was approached by another vendor. She asked if I could sell her soap in bulk (3 different types, 70 bars all together). After some more inquiring she told me that she wants to make baskets with her candles and my soaps and then sell them. She said she would leave my cigar band with my business name in place. It sounded very odd and I don't know what to think of it. Yes, I would love to sell her 70 bars of soap but knowing that she wants to resell it without my consent does not seem right. She was not talking about wholesale. Has anyone encountered a similar situation? It made me feel very uneasy.


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## Tabitha (May 1, 2010)

Once someone buys your item it belongs to them. They do not need your consent to sell it

If you buy a car & 5 years later decide to sell it, do you call Ford & ask permission?


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## Tabitha (May 1, 2010)

BTW: I'd be grateful for a 70 bar sale... not to mention hopeful that she would return in 30 days & want 70 more, or 140, or 300. If you are trying to sell soap, for goodness sakes... SELL THE SOAP!


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## TessC (May 2, 2010)

Plus they'll retain your label, which can steer new customers to your business if they buy her baskets and love the soap.


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## seaturtle (May 2, 2010)

Thanks for your input. One more question. How much discount would you give for a large sale like that? 25%? Or more?


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## carebear (May 2, 2010)

well it depends on how much profit margin you get retail...  you still want to make money, right?


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## seaturtle (May 2, 2010)

Yes. 25% is too high of a discount. I think 10 to max. 15% is more realistic. That would still give me a good profit margin.


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## Rob K (May 2, 2010)

If I was buying 6 dozen bars of soap at a time, I would expect at least a 25% discount off retail or I would pass on the deal.  Typical wholesale pricing is 50% of retail; even consignment runs 20-40% discount.

So if you can only be profitable offering a 10-15% discount, I think you may want to review either your pricing model (way to low), or your costs (way too high)...


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