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Forum nameBiz Ideas
Topic subjectNot sure what to do
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=103&topic_id=2664
2664, Not sure what to do
Posted by eshields1014, Thu Jun-26-08 06:46 AM
I have this nice lady who sent me an e mail that said she might be intersted in carrying my product but here are my problems and im scared to call her, but i know that if i dont call her ill never get anywhere

I am not registered or have insurance, which i told her she didnt seem to care? or respond to it..

Second i am not going to no the answers to her questions...such as if she asks

what they look like, i really dont know untill i go to the store but i can tell her i can bring which one she would like to see into her store

what about when she asks about her profit how do i figure that and tell her what that would be?

im afraid im going to look stupid i dont know anything, and im not going to when i call her, please help i have to call her today ive put it off for 2 weeks
2667, RE: Not sure what to do
Posted by DBeavers, Thu Jun-26-08 10:33 PM
Being clueless as to your actual product, there's no many answers I can provide.

Her profit will depend on how much she can mark it up from her cost and still get sales. You can only guess what her customers will pay, unless you've been able to sell it above the price that you will charge her for the same item. Her price from you is wholesale. Her price to her customers is retail.

Have you sold it at different prices? If not, you won't have any basis for answering questions on her suggested selling price.

Your question about insurance tells me you feel the need for product liability. If so, you probably shouldn't be selling wholesale or retail until you have acquired the insurance needed.

As for, "what they look like, i really dont know untill i go to the store", I don't understand what you question is. What "they" are you referring to - The nice lady, your product, ???

Proceed with caution.

Dennis
2671, RE: Not sure what to do
Posted by eshields1014, Fri Jun-27-08 04:25 AM
i wasnt talking about what she can sell the item for i was talking about what percentage she wants. for example, i sold them in a mail shop and i gave him a dollar for every 4 dollars made...I think she would be interested in my product because her business is gift baskets and i sell gift baskets..so it would add to what she has.
2670, RE: Not sure what to do
Posted by Pepperfire, Fri Jun-27-08 03:50 AM
The first thing you're going to discover is she isn't anywhere near as serious as you are and you'll probably go through about a dozen such contacts before you actually find a rep who really is going to work.

I know it's not the same, but here's what we do for our reps. (They are independent 100%, so they are running their own business). For those who use us to dropship or distribute for them, we pay 7% of the total sale before shipping costs.

For those who sell our product but take care of the shipping, we pay 15%. For Distributors, we pay 30%, but then they buy the products and drum up serious business for our company.

Her profit should be what you agree to and based on what she is able to sell. The more she sells, the better her profit margin... and if she is not implicating herself in the risk of selling your product, don't give her distributor rates.

You'll want to know what sort of marketing pieces she'll be using. Will she create her own or use yours? If she's using yours, who is printing them; you or her?

If I understand correctly, what you do is essentially customized to the customer and each customer differs upon your sales pitch; she needs to understand that it is the customer that gives you the answer to such questions... that is not a case of you not knowing, it's them needing to provide those answers. :)

Good luck with it... A good rep can be indispensable.

T

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!