Sale or Return Terms of Business

[indicaj01]

Can anyone help me? I have recently set up my business and website selling natural oils. Having found it difficult to get new customers I have offered sale or return to another beauty products web site retailer who will sell my product for me, while I grow the business. Problem is I have no idea what sort of terms to offer them. Questions below:

1 How long should I expect them to hold my product before I request payment?

2 How much discount would a retailer expect to receive on a sale or return basis?

3 Is there anything I should know to cover myself in case they try and rip me off ( hoping they wouldnt though of course) :?

Any advice welcome

 

[bwglaw]

Just a quick reply...

How long should I expect them to hold my product before I request payment?

You have stated 'sale or return' You should state a reasonable period. What is reasonable depends on how long you can afford to wait for payment, 30 days?

How much discount would a retailer expect to receive on a sale or return basis

This is negotiable between you and the reseller. I would have thought up to 15% - however, negotiate based on quantities so that the reseller gets more commission on larger quantities.

Is there anything I should know to cover myself in case they try and rip me off ( hoping they wouldnt though of course) :?

At 4am I am rather tired so will just do a summary. Basically the agreement should include various terms, including:

*All goods remain your property until paid in full.
*You should also state that you are entitled to recover the full cost of the goods in the event of late returns.
* You also need to have a carefully drafted clause to cover any loss or damage. Who will be liable for goods in transit, goods in possession etc
* You need to include a clause to prevent the reseller from 'passing-off' your goods as their own i.e. changing the label etc.
* You need to include a clause that the reseller is liable to comply with consumer legislation as a merchant in their own right and you have no liability.

There are many more but too many to list. You need to think about a Reseller Agreement, which I am able to draft for you if you contact me direct.

 

[Optegris]

You may also want to take a look at www.netlawman.co.uk as they do a wide range of contracts that can be easily modified to suit your business...

 

[indicaj01]

Jonathan

Thanks for your advice on basic terms. It will give me a good grounding to start from when I get to negotiations.
cheers,