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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
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.
My advice is: be paid in full in advance of shipping anything.
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'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.
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.
Super information, Kismet. Thanks for sharing.
what are "MAP terms"?