Sale or return

Hollie84

Hi i have been approached by a lady who is interested in stocking some of the items i make in her shop,she said about a sale or return basis can someone explain this to me please,sorry this may seem really obvious
TIA

elysia2003

I presume she will sell what she can (maybe at a commision), and whatever she doesn't she will give you back. That way she doesn't get left with stock that no-one wants and you can sell it somewhere else. Win - Win.

HTH

Hollie84

Ok thank you i kind of thought that,thing is will she sell them for a higher price or will i have to do them cheaper? as i will lose profit if i have to do them cheaper so that she can make a small profit herself by putting money on top for herself

hotpot1000

I would give her a price you are happy to sell to her at, not making a loss but if she is going to take large volumes then you can consider losing a little of your profit against the fact she will be increasing your revenue.

If you're not making enough money on the deal then dont do it.

best of luck, dont work for nothing

MillaJoJo

Unless i'm mistaken and she is offering wholesale with the option to send back unsold stock (meaning you would have to refund for the items that come back?), she's talking about consignment, which is, you send her the items, you get no money in return until each item sells (sometimes after each sale, sometimes monthly etc...) Then if she doesn't sell, she sends them back.

I've been selling wholesale to various countries with my handmade items. I would NEVER give my items to a vendor to sell on my behalf (called Consignment). There are far too many horror stories, especially if the store is far away and you cannot keep an eye on your items. You are responsible if the item get's stolen, the shop will not pay for it. Often items can come back damaged, or dirty, making them unsellable. Shops can close with debts, you would never see those unsold items again. They could disappear overnight and set up shop somewhere else. (I am NOT saying all vendors do this, these are just some things to consider)

If I were you, I would tell her you can do wholesale at the discount you prefer (normally 30-50% off the price you would sell them for.)
Other people have been successful with consignment, but I have seen far more bad stories than good! I turn down stores who offer consignment. It's just not worth the risk.

Hollie84

Hi thank you for replies.the lady is a cake maker and a very successful one at that she opened her shop 4 weeks ago after trading through facebook and adverts and has been non stop for the last 3 and a half yrs,she has built up a fatastic reputation and clientel.the shop is 5 minutes down the road from me so not far at all and gives me an excuse to pop in for a cupcake every so often lol
She is yet to message me back as she is having a look through the many items i make,i do nappy cakes/pamper cakes etc and all would be wrapped in cellophane so that they cant get mucky etc

MillaJoJo

If you feel happy to go along with it and you can keep an eye on it, great! I would advise drawing up a written contract though, based on what you both agree. I know it sounds very formal and she seems like nice lady, but you HAVE to protect yourself. I know a very successful cake maker who sells through facebook. Do you have a facebook page for your handmade items? It seems the best way to get out there nowadays!

Good luck!

Hollie84

Hi yes i have a Facebook page,have done for the last year and a half.get most of my orders that way.i will definetly keep in mind what u have said and have a chat with her and see what we can agree on and see whether i then still want to go ahead with it all
Thank you