more advice please ... retail opportunity for me

[bluezebra]

I was just wondering if anyone could give any advice/thoughts on this:
I have been approached by someone running a local childrenswear shop which stock baby clothes and some gift baskets (not great quality). She has given me the opportunity to sell some of my gift boxes and baskets through her shop as she want to support local women setting up.
She has offered me a little space in the window and in the shop (display area). Anyway, on the face of it this could be a great opportunity for me, but I am not sure how to organise it - for a couple of reasons - the lady hasn't asked for for any money (but I think I ought to give her something) and I am worried (even though she is really nice) that if my things sell she may contact my suppliers direct and start retailing the goods herself. I am sure she wouldn't do this to me, but I am just nervous about having an 'arrangement' which is not that solid. Any advice? Thanks

 

[Pete Williams]

I would speak to the women in question and then perhaps create some kind of commercial agreement that you then both sign.

I did this with a supplier for one of the events that I promoted. It protected me in terms of what deal I received and them by the fact that I would not use another supplier.

Have to say I am not a legal expert though!!

 

[bitsnstuff]

Hello,

When I did this sort of thing, I paid a nominal monthly rent for the space and a percentage of sales to cover credit card costs, etc. Wasn't much, but it seemed a little fairer.

Kate.

 

[sparklyscotty]

I think a lot depends on what the woman said when she approached you. If she WANTS your goods in the window, then why should you pay for that? Usually shops that have carry goods on a sale or return basis will recieve a percentage of sales.
You should also check if she will be retailing your products at the same price that you do, or if she will be marking them up.
Also, does she expect to be the exclusive sales outlet in the area for the goods she is carrying?
Maybe draw up a few guidelines to start with and then re evaluate after a few months.
Just a few things to think about.
-Angel-

 

[kyber]

Make sure you are clear on payment arrangements. We bought a lot of paintings from a local coffee shop. Later, we found the supplying gallery and bought directly from them. It took the gallery owner months to get the coffee shop to pay up for the paintings they had sold.

Stuart

 

[bitsnstuff]

I agree. Going back to my experience - we rented space in a coffee shop/gift store and were paid any money due at the end of each week. Sometimes it was tricky to get the money on time. The place was set up so that the most prominent spots for sales had higher rental, that is why the window would be more expensive as you could get passing trade with your website/tel no. visible even when the shop was shut.

It got your merchandise physically out there without the expense and committment of having your own store, but there were definite trade offs.

 

keep it flexible. If her sales go up due to the shop window ( Your stuff ) then you have paid already. However you may want to make an agreement with her as suggested by people here.
It sounds to me as though she is just being marketing clever, she is giving her customers added value with new and exciting items, in the hope that the window will bring people in and buy more than what they came in for, so is she really looking for money or is she seeing you involvement as an opportunity to raise sales, anything you sell is yours!!

 

[Rob Holmes]

One thing you can offer that your suppliers probably can't is personal service.

I don't understand why you should be paying her unless she's not making anything out of the sales herself?

Arrangements like this are great if you have a clear understanding with each other which can usually be sorted out over a cup of tea and formalised in a quick note - as basic as a 'confirming' email.

Rob

 

[RSL]

I agree with everyone's comments here. Make sure you have some sort of agreement for the business. It is business however and rather than worry about "giving her something" make sure all your financial loose ends are tied. Its really important that you are COMPLETELY comfortable with any such deal.

I'd say though that she pays you for the items and sells them at a slight mark-up. Your Unique selling point is the way in which you present the baskets and the natural eliment to it so try not to worry too much about her going direct to suppliers. She wouldn't have approached you in the first place if she couldn't see the potential for your goods.

Best of luck with it all though.