Retailers
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- Skylark
Anyone with experience selling their own products to retailers, domastic and internatitional?
I'm starting to get some requests from retailers, but I just have not worked out all details yet, like what kind of payment method to use? How does reeatiler usaly like to pay? Should I ask for COD, bankcheckes, moneyorder or just put up a paypal account for retailers?
any advice?
- rasp0
i found most places wanted items on a sale or return basis. seems the norm here for that sort of thing [tees]
- Skylark0
when you say they want it on a sale, you mean they wnat it for less then the regular price on the website for example? I'll have have a retail price for them that is lower then regular price.
But I'm more wondering about the money transaction?..how to get payed, or to have a payment method that both me and they are comfortable with?
- JazX0
yeah, I do with Loopkit Pro v1.0 at http://www.loopkit.com and I was recently featured in Keyboard Magazine and will be again in Computer Music UK in Jan. I deal mainly with UK-based distributors for sound loop CDs. It takes a while, took me three years actually, to get started but now I have a small following of loyal software and game retailers. bling bling $ ;)
- JazX0
Skylark, what are you selling Tees? COD is always good as long as your clients agree to this. Your terms of payment is up to you obviously, you can back that up with the entire pay as soon as they receive agreement that UPS and other delivery services use and take a minimal %.
- Skylark0
so JazX: you got any advice for me how to deal with the reatilers?
- rasp0
well they will want it for less, yes. so they can add there mark up. in the uk they like to make a whaopping £10 profit per tee!
but by sale or return i mean that if they take ten of you and only sell five, they then return those to you and expect the money they paid back for them.
- Skylark0
I see what you mean rasp..
JazX: So the reatilers is usally pretty ok with the Terms of payment the sell sets up?
- JazX0
I think it's safe to say that everyone get's cheated once or twice for large sums of money in any business. Which fucking sucks, because it's happened to me more than that already. Grrrrr! But, you might want to just paint up your generalized 'Terms of Payment', whether that be COD or whether that be something else, 30% up front and 70% when they receive it (so at least you cover your ass). It always helps dealing with clients that are well-known, so they cannot cheat you as easily and keeping a good open relationship with them. As long as you are selling a viable product and they know they can sell it for a good profit margin everything usually works out ok. That is if they see you as someone that will supply to them in the future.
- JazX0
what you mean exactly? maybe the other post helped, not sure? TOP is also a big thing. However, I would try and consult other places and act as if you are interested in buying whatever product you are also trying to sell. Ask them their TOP and see what exists in your market area. ;)
- rikcat0
I would set a "wholesale price" which should be less then what you are selling them on the site but more then the cost to make them. Wholesale cost can be varible depending on how many the retailer orders. Get paid upfront and have a return payment policy.
- Skylark0
Thanks JazX...I think I got a litle clearer view if this now...
- JazX0
well, paid upfront is ideal, but some retailers don't play that game, of course. Just try to cover your ass each and everytime. It's tricky but using a good set legal agreement (contract) each time helps, but then again you get these dodgy types that have money but don't want to sign anything.
- JazX0
eve if that contract be generalized and taken from the Net somewhere, jus use it and tweak it for your own requirements. cheers.
- Skylark0
rikcat. I got a wholesale price set allready. When it comes to a return payment policy I have not even though about that yet, but I will now....
when you say to get paid upfront, you talking about the whole amount?
- JazX0
if they want your product bad enough, they'll agree to COD.
- rikcat0
Getting payed upfront is ideal, you might set up a wholesale cost structure that makes them cheaper if they pay upfront. But i would get a percentage upfront somehow....
- Skylark0
Is see what your saying JazX. A contract is a must. To get payed all beofre shipping would be great...maybe at least for new customers..maybe I dont need those retailers that wont play that game?
- Skylark0
I was thinking maybe 50% upfront...that way, I got the the money for what it cost to make the shirts...
I'm all confused..it is a new area for me...
- JazX0
yeah your right, I think it all comes with experience and getting burned is all part of it and I'm hoping to 'reduce' this. Good Luck, I'm sure you'll figure it out, 95% of people are honest, it just depends on when you finally receive it.
- rikcat0
Yeah you just don't want to get stuck chasing down your cash. If you could get enough to cover the cost of making the items that would be cool.