#31

Merchant
St. Louis, MO
I hope my comments here help you guys look beyond the hobbyist's mindset.
Shave Sharp, Look Sharp
#32

Merchant
St. Louis, MO
(01-20-2022, 06:03 PM)DanLaw Wrote: That is the missed opportunity for the artisan resulting in surrendering 40-50% of the revenue as a tax for lack of effort/basic marketing skill or as an incredibly usurious short term finance COK

Your acronyms are driving me crazy. COK?
Shave Sharp, Look Sharp
#33

Posting Freak
Peachtree City, GA
That an element in larger realm of questioning strategy and planning
#34

Posting Freak
Peachtree City, GA
(This post was last modified: 01-20-2022, 06:22 PM by DanLaw.)
COK - Cost of Capital
LOC - Line of Credit
STF - Short Term Financ(e/ing)

Shall endeavour to dispense with acronyms henceforth. Apologies

dominicr likes this post
#35

Merchant
St. Louis, MO
(01-20-2022, 05:49 PM)mrdoug Wrote:
(01-20-2022, 05:15 PM)DanLaw Wrote: I know of some artisans strapped for production funding that presell to vendors as a (n expensive) method of bridge financing. Surely, I am not alone in such knowledge?
I don't think it's just the sales, though. Vendors provide visibility. If I'm going to look through WCS or TRC and I see a lesser known soap, I might check it out. Unless someone specifically mentions the soap brand to me, I'm not at all likely to say, " hey, there's probably a new soap company called Master Soap Creations... I should look for their website". How would i know? It also allows folks to try a new brand or product, along with other brands in one purchase (shipping).

Absolutely it costs the vendor to sell wholesale to the store. They hope these things help them in the long-run... Not just extra low-profit sales.

I could be wrong. But this is how I see it.

We're finding the vendor sites to be a double edge sword. More visibility, but the room is very crowded with competition.

DanLaw and mrdoug like this post
Shave Sharp, Look Sharp
#36

Posting Freak
Peachtree City, GA
And EXPENSIVE for questionable value added
#37

Merchant
St. Louis, MO
(01-20-2022, 06:26 PM)DanLaw Wrote: And EXPENSIVE for questionable value added
The online vendors?

Sent from my SM-A716U1 using Tapatalk
Shave Sharp, Look Sharp
#38

Posting Freak
Peachtree City, GA
(This post was last modified: 01-20-2022, 08:17 PM by DanLaw.)
Suppose that a matter of interpretation. 

Been informed vendors seeking 40%+ of retail in discount. 

To my perspective anybody seeking that level of profitability better be hustling the Hell out of the product with a targeted aggressive marketing campaign, not warehousing, passively selling via a web site and shipping. While most artisans may be fine with vendors profiting off their lifelong experience, innovation, investment and risk to a higher and more certain degree than they; clearly not amongst those so inclined...results better damned be highly incremental and sustainable.

mrdoug likes this post
#39

Member
New York
(01-20-2022, 06:51 PM)DanLaw Wrote: Suppose that a matter of interpretation. 

Been informed vendors seeking 40%+ of retail in discount. 

To my perspective anybody seeking that level of profitability better be hustling the Hell out of the product with a targeted aggressive marketing campaign, not warehousing, passively selling via a web site and shipping. But others may be fine with others profiting off their lifelong experience, innovation, investment and risk to a higher and more certain degree than they. Others may be fine with that arrangement.
When you put it this way, I absolutely see your point.

Presuming that 40%+ isn't just a select few, it is a lot to pay for "passive advertising". Rumor is you can except 50% profit from materials to cost of final soap (average? I don't know... Read it somewhere). Giving 40% away does sucks.

DanLaw likes this post
#40

Merchant
St. Louis, MO
(01-20-2022, 07:04 PM)mrdoug Wrote:
(01-20-2022, 06:51 PM)DanLaw Wrote: Suppose that a matter of interpretation. 

Been informed vendors seeking 40%+ of retail in discount. 

To my perspective anybody seeking that level of profitability better be hustling the Hell out of the product with a targeted aggressive marketing campaign, not warehousing, passively selling via a web site and shipping. But others may be fine with others profiting off their lifelong experience, innovation, investment and risk to a higher and more certain degree than they. Others may be fine with that arrangement.
When you put it this way, I absolutely see your point.

Presuming that 40%+ isn't just a select few, it is a lot to pay for "passive advertising". Rumor is you can except 50% profit from materials to cost of final soap (average? I don't know... Read it somewhere). Giving 40% away does sucks.

You guys think these vendors "take a chunk", they don't hold a candle to the pound of flesh Amazon takes.

mrdoug, Emg06 and DanLaw like this post
Shave Sharp, Look Sharp


Users browsing this thread: 1 Guest(s)