kidsngarden Posted July 21, 2007 Share Posted July 21, 2007 I've done one wholesale order thus far and am pursuing it more and more. Right now I am working with a very small local shop. They don't have huge traffic as their entrance is in an alley, but it's cute their clientelle seems to suit natural bath and body products. We have come to a stalemate concerning my minimums and I'm wondering if I am expecting too much. If I change for her I will change for everyone though because I don't think it would be good business to do otherwise. Besides that this store does not get the traffic to merit bending the rules.I have a wholesale price sheet that gives the suggested retail and wholesale price (which is generally half the suggested retail amt). I have a $50 mimmum order and want things purchased in lots (meaning same fragrance per dozen, etc.) Right now this gal wants my body velvet which wholesales at $3.50 per 2 oz jar, the lots are in quantities of 12. She wants to buy two different fragrances, but doesn't want to buy 24 jars for her small shop. She's asking if I have any "ideas" for her on this.My reasoning behind the lots is that I'm already taking a hit on profits and I need to produce in bulk to make it worth it. one batch of lotion can make 12 2 oz jars. (and to be honest I usually make in triples and divide into three different fragrances) one log of soap is 12 bars. so those are the quantities I chose. Am I shooting myself here? should I reduce the lots to 6 on the soaps and 2 oz lotions? I'm figuring as my business grows I will not want to do a little of this and a little of that to fill an order so I'm thinking ahead. Is my $$ minimum ok?TIA,Bethany Quote Link to comment Share on other sites More sharing options...
BLSoaps Posted July 21, 2007 Share Posted July 21, 2007 I will make exceptions every once in a while for wholesale accounts on lot minimums, but I usually make up for it elsewhere. If she wants to have smaller lot minimums, then don't do a full 50% off. Explain the labor time to her, and I'm sure she'll understand. As a small business, I can definitely see where she wouldn't want 12 of one item if she doesn't even know if it will sell or not. (we obviously hope it does, but she doesn't know upfront)A couple ways around this....1. Cut your minimums in half for this order, and have the prices be 40% or 45% off the retail instead of 50%. I use this frequently for people who don't want to order my full minimum amounts. For me, orders between $50-99 get 30% off, $100-199 get 40% off, and $200 is my normal minimum (with $100 reorder minimum). So definitely don't go lower than your $50. I already thought it was low.2. Offer a sampler type pack. I keep meaning to build one of these into my wholesale pitches, but heck if I can ever find time! LOL! Take your top selling items (keep it all the same product, or mix and match), and create a sampler kit that they can start out with. Let's say it contains these two creams in the scents she's interested in, also include matching soaps. HOWEVER, it's not priced at the full 50% off. I'd say 30%, 40% at the very most. This is basically an inexpensive opportunity for her to try out the products in her store with minimal risk. This sampler kit would need to be less than your minimum for it to be appealing to a retailer though. For instance, with my $200 minimum, I would probably offer a kit with a price tag of $75. I'm not sure how much you could offer with only a $50 minimum.One last thought before I'm done. I personally thought that the high lot minimums didn't go well with the low minimum order amount. 12 of most of my products would take up most of the minimum. Having high lot minimums seems (to me at least) to work against the low overall minimums. Okay, that's all my migraine riddled brain will let me come up with. Hope it helps and good luck! Quote Link to comment Share on other sites More sharing options...
Candybee Posted July 21, 2007 Share Posted July 21, 2007 I found it best not to put my wholesale terms 'in stone' to start out. I made adjustments for each of my store accounts to suit their needs. I did this to establish a relationship with them and give them time to know me and trust me and especially my products.I also listened to the store proprietor and asked questions. They give you great feedback if you listen.You may want to start out flexible then later you can give your store accounts an updated wholesale catalog with the new minimums or rules you want once you have established a good relationship with them.You need to trust your instincts too. Some people will try to take advantage of you so if you feel they are pushing you too far just don't do business with them. It may save you lots of headaches in the future.I started out with small accounts. Little by little they are growing. Just yesterday I stopped at one of the shops I sell at and the manager ordered a whole bunch of my soaps. So for me a bit of flexibility, a lot of relationship building & trust are what worked for me. Quote Link to comment Share on other sites More sharing options...
Candybee Posted July 21, 2007 Share Posted July 21, 2007 I will make exceptions every once in a while for wholesale accounts on lot minimums, but I usually make up for it elsewhere. If she wants to have smaller lot minimums, then don't do a full 50% off. Explain the labor time to her, and I'm sure she'll understand. As a small business, I can definitely see where she wouldn't want 12 of one item if she doesn't even know if it will sell or not. (we obviously hope it does, but she doesn't know upfront)A couple ways around this....1. Cut your minimums in half for this order, and have the prices be 40% or 45% off the retail instead of 50%. I use this frequently for people who don't want to order my full minimum amounts. For me, orders between $50-99 get 30% off, $100-199 get 40% off, and $200 is my normal minimum (with $100 reorder minimum). So definitely don't go lower than your $50. I already thought it was low.2. Offer a sampler type pack. I keep meaning to build one of these into my wholesale pitches, but heck if I can ever find time! LOL! Take your top selling items (keep it all the same product, or mix and match), and create a sampler kit that they can start out with. Let's say it contains these two creams in the scents she's interested in, also include matching soaps. HOWEVER, it's not priced at the full 50% off. I'd say 30%, 40% at the very most. This is basically an inexpensive opportunity for her to try out the products in her store with minimal risk. This sampler kit would need to be less than your minimum for it to be appealing to a retailer though. For instance, with my $200 minimum, I would probably offer a kit with a price tag of $75. I'm not sure how much you could offer with only a $50 minimum.One last thought before I'm done. I personally thought that the high lot minimums didn't go well with the low minimum order amount. 12 of most of my products would take up most of the minimum. Having high lot minimums seems (to me at least) to work against the low overall minimums. Okay, that's all my migraine riddled brain will let me come up with. Hope it helps and good luck!I did the 'sampler' pack when I started out. My customers loved it!I also didn't do the full wholesale price for non-minimum orders. Store owners will understand if you give them a price range for minimum and under minimum orders. You have to give them time to try out your product before they will settle on a minimum order. JMO Quote Link to comment Share on other sites More sharing options...
kidsngarden Posted July 22, 2007 Author Share Posted July 22, 2007 Thanks! I think I will do like soapmaker and have the percentage off retail go up as the order does and lower my lot size, maybe to 6 on the body velvet.This is how it worked this time. I told her I would be happy to offer her a variety of lotions at 25% off retail and she took it. She ordered 12 variety and a 12 lot of one fragrance at the 50% off retail price. So it's working out. This is tricky business I tell you!Thanks so much for the input!Bethany Quote Link to comment Share on other sites More sharing options...
BLSoaps Posted July 22, 2007 Share Posted July 22, 2007 I'm glad you were able to work something out! In case I didn't mention it before, congratulations on the new account!!! Let us know how everything turns out!!! Quote Link to comment Share on other sites More sharing options...
kidsngarden Posted July 23, 2007 Author Share Posted July 23, 2007 Thanks! Tomorrow I will be reworking my price sheets. I am feeling really good about things now.Bethany Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted July 23, 2007 Share Posted July 23, 2007 Congrats and goodluck in the wholesale business. I wholesale in lots of 3.... This way , if a customer buys two of something they really like.. there is one left on the shelf,, until the next order arrives. Since most customers would rather have a variety of items, versus 12 or 15 of one item this has worked very well for my wholesale accounts. Instead of offering a minimum, I offer incentive wholesale buying. The price breaks are at $200, $500 and $1000. Most clients buy at least $200, to get the little price break. Quote Link to comment Share on other sites More sharing options...
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