How to Become a Wholesale Distributor of Scented Candles
Distributing scented candles is a fantastic opportunity to make money while working from home (Reference 1). In selecting a manufacturer to supply you with product, however, it is important to perform due diligence so that you can maximize your profits and have a quality product to market.
Instructions
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How to Become a Wholesale Distributor of Scented Candles
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1
Before starting your candle-distribution business it will be important to secure a resale tax ID from your state sales tax authority. The perspective wholesaler might require this ID number before authorizing you to sell their product (Reference 2).
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2
Conduct a basic Internet search for candle wholesalers. Your search will reveal a number of potential scented candle providers and you may also find websites containing their own comprehensive listings of candle wholesalers (Reference 3).
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3
Order a sampling of each product from individual manufacturers. If the wholesaler believes you are a possible distributor, they might send you a sample package of their products (Reference 1). Distribute these samples to your prospective customers and seek their feedback. Based on this feedback, you will be able to perform due diligence in researching and selecting a product that your customers are likely to buy.
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4
Review the fine print of any distributor's agreement that you are asked to sign. Is there a requirement of a large up-front fee in order to be a distributor? Will you be required to make a minimum purchase each time you order new inventory? Are you limited in how much you are allowed to markup the price of the product? Are you also allowed to distribute other manufacturer's products? By ensuring that you have a working knowledge of any limitations brought on by the distributor's agreement, you can avoid unexpected and unpleasant surprises that could eat into your profit margin.
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5
Ask if the wholesaler will provide you with the tools that you need in order to be successful. Items to check for include printed material containing product lists and descriptions, instructions on how to use each product, access to the wholesaler's website to allow for web-based sales and distribution and the necessary information for ordering the product in a safe and secure manner.
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Tips & Warnings
Don't forget that you always have the option to manufacture your own product as well. This is the ultimate way to avoid having to pass on the manufacturer's cost to your customer.