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05-27-2008, 01:57 PM | #1 |
Peeka Boo I See You! Donating Member | ~~To All Store Owners And Whole Sellers Please Read!!~~ Ok I have a question....... To those of you who wholesale your items, How do you do it? I have someone who wants tosell my toys in thier store but i am not sure what are good terms to go by. I really don't want to do a pay as they sell type thing i would rather they buy upfront is this how you all do it? Do you have a contract with the person you whole sale to?? Also on price how do you determine a whole sale price? Please if anyone has any suggestions it would be great Thanks!!
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05-27-2008, 05:55 PM | #2 | |
Love My Furbabies! Donating Member Join Date: Jan 2007 Location: somewhere
Posts: 4,427
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Consignment and Wholesale. Consignment -- your items are put in someones store and as they are sold the store owner, and yourself have a profit sharing situation 40/60, 50/50, ect and usually you are paid monthly for what has sold. This is usually good for the store owner because they aren't out anything if your items don't sell. It can be good for the supplier because they are still getting their name out there, but they are out the time and money of the products up front. An important note to remember is to get a contract stating what will happen if an item is stolen or damaged. Will they be paying for that, ect. Wholesale -- You set your price on your items. The store would pay you up front for their order. You may want to set a minimum dollar amount for the first order, it's totally up to you. Setting your wholesale price is basically the cost of materials, labor, and what profit you would like to make (if any) on your items above labor. You can also give discounts for large orders. I hope that helps Amber! ETA Contracts can also be a good idea. Say for instance you are wholesaling, but don't want your item to go on sale below a certain price point -- you should have that in your contract up front. Anything that's not in a contract, once a store owner has your item and has paid for it in full, they can do what they want with it so you really want to think about that beforehand also. Last edited by yorkiegirl83; 05-27-2008 at 05:57 PM. | |
05-27-2008, 06:15 PM | #3 | |
No Longer a Member | Quote:
Create a simple contract. I would start with having them pre-pay. As time goes by, you could switch to net 30 (they purchase on credit and pay you 30 days later), but for this type of product at this price point, I wouldn't recommend that--that is something usually really large businesses with lots of capital do. Hope this helps, | |
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