need a suggestion for selling soaps .

[umeali]

Hi dear members I need your expert advice .someone approached me with three options .He wants to launch new soap brand
1: Buy Raw material from him at very discounted rates .
2: sell my formula to him so he could make soaps and launch a new hand made soaps.
3:make soaps for him with the material he provides and charge for making only ...
I am very very confused as which option is best to be chosen .Looking forward for your precious seggestions

 

[Lin19687]

Make the soap and sell it to him

 

[dixiedragon]

Honestly? This guy sounds super sketchy. No offense intended, but why does he need to buy your formula? I'm sure your formula is very nice, but there are hundreds and hundreds of recipes online. Of the 3 options, #3 sounds like it has the least risk to you.

 

[soapmaker]

Yes, I agree with dixie. # 3 sounds like there would be no loss to you unless he doesn't pay. How about requiring 50% down to make a batch?

 

[dixiedragon]

With #3 - even if he doesn't pay, all you are out is some time, vs being out for a lot of supplies.

How much is he offering for your formula?

 

[OldHippie]

1: Buy Raw material from him at very discounted rates .

I don't see where this helps him "launch new soap brand".

2: sell my formula to him so he could make soaps and launch a new hand made soaps.

Soap recipes in general are easy to find and develop. Unless there's something really outstanding and unique about your recipes that cannot be inferred from the ingredient list and he want to buy them, maybe he does not have a clue. Grab as much of his money as you can and run before he gets one.

3:make soaps for him with the material he provides and charge for making only ...

This may be your best long term option. You want to very carefully decide terms that are in your best interest, because you'll be stuck with them.
Will you have to pay for any ingredients or supplies for his soap before you make it?
Will you have to cut, label, and package them?
Will you be able to continue to sell your own brand? If so, will he supply you at a good price?
You want to be guaranteed a given number of loafs in a given period of time.
Price high and negotiate down.
If I think of anything else, I'll add it later.

 

[umeali]

@OldHippie,@dixiedragon,@Lin 19687 Thanks alot all my dearest soap makers i chose the third option but he wanted me to make in front of someone who will be from his employees ,then i refused ,,,,rally thankful to all of you for a very very very sincere suggestions.Love you all and prayers for all of you .

 

[dixiedragon]

So it sounds like he wants you to teach somebody to make soap? Then why not just pay for that? Yup, super sketchy.

 

[umeali]

So it sounds like he wants you to teach somebody to make soap? Then why not just pay for that? Yup, super sketchy.

Yesyou are right ......

 

[Candybee]

After reading through this entire thread my response is forget this guy. He was not entirely forthcoming to you and just wants your hard earned experience handed to him free. I would just smile and walk away.... far away...

Seriously, he will be trouble in the future based on how he approached you.. take that to the bank. You have to ask yourself is this the type of person I want to do business with? The answer to all options is a resounding NO!