Wholesaling

Replies to This Discussion

Permalink Reply by Ruth Esteves on September 17, 2009 at 12:16pm

(I kind of asked this in another thread before I saw this one, but it here goes again...)

I just don't know how to even approach a retailer to offer my soap. Any tips or resources that you can point me to?

Permalink Reply by Marla Bosworth on September 17, 2009 at 12:33pm

Hi Ruth,

There are a few key points to guide you into successful wholesaling. Visit a few local potential wholesale accounts first and see if you can envision your soap on their shelves. Call ahead and arrange a time to meet with the store buyer. Be gracious and understand that oftentimes these storeowners work long, hard hours and deal with many people on a daily basis trying to sell them something. Don’t drop in on a storeowner unannounced and expect them to meet with you.

Many storeowners like to be the only shop in town to sell your products. It makes sense to pick one retail outlet instead of spreading your sales all over town in multiple locations. In most cases, the latter won't result in more sales.

Understand wholesale pricing (half of retail) and terms of payment (Net 30, COD and Prepaid). Then design and print out copies to hand out to potentially interested parties. Information on wholesaling should include minimum opening order (the minimum amount a retailer must spend to write an order with you). Currently my minimum is $300. Also, consider that you’ll want retailers to carry a good selection of your products otherwise they will become “lost” in the store. For me, a $300 minimum assures the storeowner that my line will have a strong and visible presence and will have a better chance of being sold. It's sort of like selling good real estate space. You want to take up a nice little portion of their store. Good retailers understand this concept. Set your wholesale opening order for at least $100.

Your wholesale sell sheet should include quality pictures of your products, with wholesale pricing next to each one. Each of your products should also have a minimum order. Most companies sell in dozens. This is a good idea for several reasons. What you don’t want is stores ordering two lemongrass soaps, three lavender, and so on. This is a time killer and you’ll be spinning your wheels for the desperate act of selling a few bars. Raise your minimums and you’ll raise your bottom line!

Retailers will probably ask you about your bestsellers. You may want to make it easy for them and have a couple of Bestseller Packages at various price points. I have Bestseller Packages at $300, $750 and $1000. They might ask if you are willing to private label. This has its advantages and disadvantages that we can talk about in another post.

Also, prepare a professional "shelf talker" that has a picture of you on it. Consumers don't read much when they shop, so keep your company short and sweet and to the point. I've seen this make a huge impact on sales.

Lastly (although I could keep going!), do not put your website or phone number on your labels. Store owners want the repeat orders to come back through them.

I know there's a lot more to it, but hopefully this is a good start. Let me know if you have any other questions.

Permalink Reply by Ruth Esteves on September 17, 2009 at 1:35pm

So much great info! Thank you SO much. It looks my next step is getting my sell sheet together. I already have a local shop in mind.

Permalink Reply by Marla Bosworth on September 17, 2009 at 4:29pm

In addition to an opening order minimum, you'll need a reorder minimum. If you're selling bars of soap exclusively, then you might want to have a $50 reorder minimum. This way the retailer can restock if they sell out quickly of one scent/variety.

On your terms and conditions sheet also list a return policy. Many wholesalers require a restocking fee for returns, or a percentage just to make it worth their time. Also, consider if you want to offer exchanges instead of returns. This is entirely up to you, but best to have in writing and make sure the store owner gets a copy. Of course you can make exceptions depending on what circumstances may arise. But something to think about.

Permalink Reply by Janice Summers on September 22, 2009 at 11:31pm

I have had a store or two approach me on carrying my products in thier shops. Do you need to have a contract agreement with the store for wholesale? These are smaller stores and I am just starting out so I think I am playing it fast and lose, but I hope to grow the wholesale business so it would be great to know how to set it up right from the begining. Thanks so much for sharring by the way!

Permalink Reply by Marla Bosworth on September 23, 2009 at 6:38am

Hi Janice,
It's not necessary to have a contract agreement. You'll want to have an opening order minimum and product minimums (see my post above in this thread).
The point to remember about wholesale (since the margins are half that of retail) is that you have to sell in volume to make substantial income.
Good luck!

Permalink Reply by Jennifer Hardaway on September 23, 2009 at 1:07am

Great info, Marla!!

Thank you for sharing your knowledge!!

Jenn

Permalink Reply by Marla Bosworth on September 23, 2009 at 6:39am

Thanks, Jenn! Feel free to jump in here. I'm know you have a lot to offer as well!

Permalink Reply by Kathleen W. on October 17, 2009 at 6:57pm

What are good wholesale places to try?

I would really love to get a wholesale account some day.
I have my list ready and have sent it off but it didn't make it. It was for candles.
She said, that I need UPC labels. Do you use those also? I know some stores use there own.
But its been a while since I tried it again.

Thx
Kathleen
www.aangels.etsy.com

Permalink Reply by Marla Bosworth on October 17, 2009 at 7:07pm

Kathleen,

I buy my barcodes from www.buyabarcode.com. I find them to be very reasonably priced and you can order in smaller quantities. Usually larger stores, especially store chains, require them.

There is a lot that goes into successful wholesaling - from having a professional sell sheet, terms, opening minimum, product minimums, return policies, shipping rates and so on. Retailers have incredible "radar" - they can sense if you are new at it or not.

Take a trip to a local wholesale trade show and see how other vendors are wholesaling. Immerse yourself in it. Stick to your guns and don't change your line for your one retailers (suggestions are one thing, but some retailers want to shape your line entirely).

If there's enough interest, I'm going to offer an online class on How to Wholesale Your Bath & Body Products.

Marla

Permalink Reply by Ruth Esteves on October 17, 2009 at 10:23pm

You can count me in the "interested" column!

Permalink Reply by IBN Member - Tyrika Swails - mainelement: love on November 19, 2009 at 7:52pm

I hope I didn't miss this class. I'm very interested!

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