Soy Wax Candle Forum - Online resource for soy candle makers

mike bastian wrote:

> hi, first i just wanted to let you know that you have helped me in answering my questions and i appreciate it. i do have one more question though. i have the making of the candles down. now i have some local business that want some of my candles in there stores. i was just wondering what you think is the best way of going about doing this. do you rent space, sell straight up, of split percentages. i didn't know if there was a form that vendors use as a contract or what. if you could please give me some insight i would greatly appreciate it.

Hi Mike,

First of all I must say congratulations!! That is wonderful that you have some local businesses interested in your product!
I guess it depends on how much involvement the store wants in the sale. For example, a store owner may want to track inventory, sell products at their own price, and just pay you a wholesale (or reduced price) for your candles. Another store owner may offer you shelf space (or provide you with some floor space for your shelves) and want you to keep it stocked with a variety of products. Usually in this case, the store owner will pay you based on your inventory records (or they may keep track of the sales and pay you according to that). Usually here the store takes a cut off the top. This is similiar to the space rental, except you are not paying per piece you sell, but a monthly or weekly fee that does not change.
In the past I have only sold straight up at discounted prices. The problem with this is that the store owner may end up buying something they think will sell only to have it sit on the shelf forever! Keep in mind, I only sell this way because my candle making is not a full time job, and I do not have the time to visit stores.
It would be advantageous to rent the space if you could sell enough to make your profits higher than what you would receive if the store takes a cut of the profit from each sale. When that happens, be careful... your rent will more than likely increase!

I guess I could go on for hours on this topic... you should do what is easiest for you (short answer). You might try both ways with a couple different stores, and see which works better for you.

Will Reece
soywaxcandles.org

ps - if you ever get to the point where you wish to open an online store, let me know. I have been working on an ecommerce solution for small vendors that makes it pretty easy to sell stuff online through paypal. (demo at http://demo1.hostingkc.com ). Yes... I do some webhosting as well (I'm a busy person!!)

Thanks again!