Friday, April 10, 2009
Terminated New Wholesale Account
2 weeks ago i had had enough and terminated my new venture with the retail company that wanted to feature my medieval product line in thier product line. After a multitude of patient emails to them trying in detail to explain the FDA laws regarding legal labeling of products for retail they kept insisting on trying to make me market my products illegally and completely ignoring my efforts at educating them to keep us both out of trouble. I am out $500, stuck with product I had no intention of investing in for myself, and am glad I found out how unscrupulous they are NOW rather than later when orders started coming in...I was going to dropship the itmes, so that meant they would be remitting payment on orders to me, I probably would not even have been paid for my products. I learned 3 valuable lessons: 1.) CONTRACT, contract, contract. 2.) Insist the retailer invest half the investment monies up front before any work is done. 3.) An exclusive contract costs $20,000 and a license must be signed. They wanted to have exclusive rights to my products, in the bath and beauty business, that is worth $20,000 to cover lost future revenue on my behalf since I would have to remove my products from my stores..Learn from my experince, get it in writing and get earnest money up front to cover your expense. any company that knows nothing about the bath and beauty business MUST follow your lead, it is your business that is on line, when the FDA levies fines, it will be YOU they levy them against if your products are not manufactured legally.