PLACING M&P IN PLACE OF BUSINESS

[jenmarie82]

I have a guy that just called me to talk about placing some of my soaps in his tanning salon. I have no idea what sort of % to tell him. Any ideas?

 

[Tabitha]

The national standard is as follows.:

Cost of supplies & time X4 = Retail

Cost of supplies X2 = wholesale

If you want to consign I would suggest 30% to the shop & 70% to the artist/crafter.

 

[AshleyR]

I'm sure you know this already, but I would make sure to have a "minimum order" so that you actually make money. Most people sell their stuff to wholesalers for cheaper than their regular sale price, so you want to make sure you're still going to make money off the sale. I would say he needs to order a minimum of 50 bars or more....

 

[jenmarie82]

Well I'm asking if I can just place my soap in his tanning salon. He's not ordering wholesale. This is just me selling through his shop. So i don't think i want to have a min. order.

 

[Black soap n candle lady]

This could be a great way to get your product out there. I have done this before with other items. The people that had the stores were my friends and we BOTH kept track of inventory and money earned so that there would be no misunderstandings. Keep in touch with the storekeeper often. Good luck!

 

[Tabitha]

Than that is what you call *consignment*. You will need to agree on a % for the shop to retain for selling your soap for you. I would suggest 30/70.

 

[jenmarie82]

I talked to the guy this morning and he doesn't really want to allow me to place the soap for fear of law suits. He told to bring in samples anyways. not sure if i will or not.

 

[Tabitha]

Insurance would cover you in that type of situation.

Check the soap guild. They have the best deal on insurance.

 

[jenmarie82]

what's the soap guild?

 

[Tabitha]

http://www.soapguild.org/

 

[earthsessencellc]

Maybe I am an old meany, but I DON'T do consignment. I have gotten burned one too many times, the shop goes under, your product ends up missing, and no money has exchanged hands..... I have even had one lady pul my labels off of my soaps, and put hers on them, now this was a consignment deal, not wholesale!

I have gotten burned one too many times, i guess I feel now, that If they want my products in their shop, then they can work out a wholesale deal with me and at least after it's done, they are free to do as they will with the soaps, and I have gotten my money's worth out of them.

Now not every shop is like this, but just be careful, I have had good experiences and VERY bad ones..... Watch yourself, set some guide lines up front for both of you, remember you have to protect your products and the shop owner needs to protect their reputation. Have numbers already worked out on paper BEFORE you go into the shop for a meeting or to talk things over. Know the market that goes to that shop, you want a good market especially if your product is in there, so good rep. How much business does this shop do? is it worth it for you to allow those bars to 'sit' there for any length of time?

Maybe I am too analytical over it, but do your homework, and do a lot of homework before going that route.

 

[Tabitha]

I do not consign my items either, which is very ironic since I own a brick & mortar consignment market :shock: .

I went to check on my soaps one & every bar had a big chunk dug out of it, the owner justsaid "Well I wondered what those boys were doing over there by your soap for so long yesterday :roll: "

 

[mandolyn]

I left some of my whipped shea butter in someone's shop & I haven't heard from her since. She won't return my calls & runs her shop by appt only, so I can't just drop in. She's in another town, too. So, I guess I'm just out 6 or 8 jars of whipped shea butter!! :cry:

Just be very carfeful.

Wholesaling is a better way to go I think. I'd have a minimum as well. I was approached by someone who wanted to buy wholesale, but she only wanted 3-5 items. Well, to me that's just a way for her to get product cheaply for her own personal use. After some investigating, I found out she was doing this with others, then stalking us via emails if we didn't agree to do business with her!

The insurance from the Soapmakers Guild is a good deal!!

 

[jenmarie82]

I had a lady that wanted to wholesale with me but after a few days she told me she couldn't because she couldn't afford to buy the minimum of 25 bars. She then told me that she could probably buy a little less and i said no, so yeah you've got to watch some people.

I have another lady that's supposed to order this coming week for wholesale. We'll see what happens.