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Old 10-04-2009, 10:06 AM
The Watkins Man's Avatar
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Location: Traverse City, Michigan
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Default Advice please

Hi

I am considering approaching small businesses to sell Watkins lotions.

Is 15% profit margin good?

Should I buy the product and have them pay for it when it sells?

Thanks
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Old 10-05-2009, 06:26 PM
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Once apon a time I owned a retail store.

I would accept nothing unless I was making 50% commission on it.

Any stores that I'm involved with now (I'm thinking more consignment stores) ask for 50% commission.

Some stores that have expressed interest with my Watkins are expecting at least 25% - and that's if I buy the product and stock the store on my own dollar, to come back and collect earnings and any product that isn't selling.

If what you are trying to do is get your NAME out there, and the store is willing to let you do some advertising, I would advise to sell it to them for cost. This way, you are still making your points and those sales go towards your month end. It's also basically free advertising. Also, then the inventory is THEIR responsibilty to get rid of, not yours. I always tell stores that they need to have a minimum order with me of $100 to $200 to do it this way.

If the store wants a few items, try to suggest that they sign on as an associate themselves, and then they will also get the Associate Only sales (which they can mark up more) as well as any volume bonuses themselves. IT also gives them the freedom to order as much or little as their store needs, and they dont' have to worry about minimums.

Stores can also mark up the products as much or as little as they want to (and remind them of this, that they don't have to stick to the book prices.) But I truly think that 15% return on a dollar spent in their store isn't worth it, when most wholesalers sell for at least 50% off.

I hope that's helpful!

Lori
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Old 10-07-2009, 10:33 AM
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Thanks lori
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