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I have been asked by a few businesses about selling my products in their stores.  

I have never done wholesale or written a contract, so I have no idea how to go about this.  I am very happy to have been asked this question but is there a guide that I can follow? 

Thank you in advance for your help

Best Vee

Tags: business, contract, wholesale

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Hi Vee,

With my wholesale accounts, I have never written a contract unless the client specifically wanted to be the only store to carry exclusive fragrances within a specified territory.

Sorry, if I couldn't provide more in depth information on this.

Best,

Jameel

Thank you so much. What about receiving money : what advice do you have about agreements with payments?

My advice is: be paid in full in advance of shipping anything.

Ahhh. I see. This makes sense. Does this normally include shipping costs?

Yes, of course. You have to cover your shipping, otherwise, you lose money. Of course you can offer free shipping for orders over a certain amount.

Thank you very much.  A business would love to carry my bath fizzies and I wanted to make sure that I have all the information before agreeing and shipping my products to the store.  

I am interested in a document to address these points also. Stores have asked about discounts, demo budgets, shrinkage... As my business enters its 5th year online these issues come up more frequently. If you have clauses or a template. Please share. Of course redact any confidential text.

I've tried to avoid retail outlets as my cost of organic ingredients is high and most retailers want to mark-up the product 100% which makes it costly on the consumer end.  With that said, I recently approached a local, high-volume Garden Center to stock my botanical hand cream.  I wanted to get in to their establishment and was willing to lower my % with the hopes that volume sales would lead to other products being offered + my business reaching a broader customer base.  Their initial order was small, they paid in full upon delivery.  (I've researched around ... most everyone requires payment in full upon delivery).  Another aspect to consider, customers "handling" your products will create "wear and tear" and there's also the possibility of theft. Once a product leaves your hands, the retail establishment is responsible.  Also, no contracts needed ... just be clear about your pricing; minimum order requirement. 

All best,

Elise

Wholesale makes up about a third of our sales. We don't use contracts. All our terms and information is listed on our pricing sheets. If you decide to offer your product for wholesale, you may want to consider including on your pricing sheets:

Opening order amount
Reorder amount
Payment terms: due on receipt until account is established
Shipping: USPS flat rate, UPS, FedEx...
Expected delivery date
Suggested MSRP
MAP terms (if you have them)

Good point, Susan. We do need to remember (and remind each other) that a contract does not have to say, "Contract" on the top to be legally binding. It can be a series of email messages. It also does not have to be written - there are oral contracts.

If there is a "meeting of the minds," there is likely a contract of some kind or another. The basic terms are: what the goods are, what the price is, and delivery and payment terms. When you agree on those things, whether orally or verbally, you have a basic contract. The devil is in the details, so your suggestion to consult an attorney is a good one. Thanks for the reminder.

dM

Super information, Kismet. Thanks for sharing.

what are "MAP terms"?

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