New Jersey
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Hi,
I was thinking of ways to distribute my product if I took the “manufacturing” route instead of the “licensing” route with my product.
Obviously, my distribution would start off small and local; do you think if I proposed the following to local stores that they would be interested in this type of partnership?
I was thinking of asking local stores to display my product in their stores with no up front payment to me? Then depending on how many units of my product are sold I would offer the local store a percentage (%) of my profits?
Thank you,
olimits7
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Leonard Jackson
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Hey Olimits, thanks for asking this. I posted a similar question last night.
I was wondering though how realistic it is to use a purchase agreement as leverage when approaching a potential manufacturer? My goal is to land a purchasing agreement and a have a manufacturer produce my product with the guarantee that they would receive payment once I can get the product to the retailer.
And also, what type of figures and components would one need even approach retailers to order your product? I like the idea of free samples…
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Julie Brown
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I used the words “wholesale pricing” in the search button above and one of Roger’s responses came up first. I know there are others so keep searching – maybe ‘pricing for retail’, ‘selling wholesale’, etc.
Good luck….
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New Jersey
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Thanks for the replies everyone!
Just trying to explore all options to show some sales figures for my product even if it’s from small/local retailers to start off. At least this way I can accumulate a history of some sales figures that I can one day show larger retailers.
I’ll definitely take a look at setting up a “consignment sales agreement”; when trying this sales method out.
Julie, do you know the “title name” for the post where Roger Brown lists some more formulas regarding margins?
Thank you,
olimits7
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Julie Brown
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Don’t take it personally if you get turned down, no matter what you offer. Or maybe you have something which will sell like the pet rock – I don’t know. Giving free sample(s) and asking the store if you could put the product in on consignment, no money from them, might help you. For every one that they sell, while on consignment, you should pay them the amount they will make if they buy wholesale from you. If your retail price is $21, then you cannot sell to the store for more than $10.50 and usually it would be more like $7. The store will make a lot more profit than you will and that is a difficult fact to accept. Think volume. I am speaking from my own experience but I know that there have been a few formulas given in the forums: Roger Brown wrote about the margins at least once. Maybe use the search button above.
Good luck.
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Eduardo Negron
37,250
Insider Points
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My Best wishes to you olimits. Hope your dream come truth thats is a perfect step to start. let us know how go.
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Kosmo Nova
25,000
Insider Points
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@olimits7
You may need a consignment sales agreement if you haven’t already consulted with an attorney.
Complete the form below to generate a consignment sales agreement that you can print and use to form an agreement with a consignment merchant to sell your goods on a commission basis.
http://resources.lawinfo.com/letters/frm_consig...
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alice InWonderland
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I am curious to see the answers to this also, olimits7. I hope you find the answers you are looking for…
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