Sunday 11 December 2011

Risks Faced When Things Are On Consignment

One of the losses that we have made in this business resulted from putting our goat milk soap on consignment to outlets. Consignment basis here means that we, as soap distributors, put our product at a particular outlet (convenience stores, beauty shops, petrol kiosks, etc) and they are only paid when the soaps are sold. If they are not sold, the outlet owners are not obligated to pay us anything apart from those that have been sold. 

The problem occurs when our soaps are not being properly put in its baskets (where it is displayed) - which would often result in outlets losing/misplacing these baskets, unkempt soaps (with its wrapper torn & weary), soap bitten by rats or our products are shelved some place obscure altogether - away from the public eye.

That is the reason why we encourage distributors to insist outlet owners/operators in displaying the soaps (in the basket) at the cashier's counter of the outlet or some place prominent where the customers could immediately see them because these soaps do not belong with the other detergents (including commercial soaps) at the back of the shop. It would not sell if they are put back there nexy to the Luxs and the Doves - which are way cheaper in pricing.

Brochures of the soap's benefits should also be available to the customers in order to educate them about the effectiveness of our soaps and why it is priced in such a way. 

These informative & educative method (by putting the soaps, brochures and pamphlets at the front of the store) will eventually benefit the shop/outlet owner at the end of the day - apart from the customers. After using our soaps, users would definitely feel the difference. That's certain.

It is sad to find that some outlet owners would chuck the goat milk soap in the abyss along with the other products. It would surely rot there and eventually damaged. These are some of the foreseeable risk that distributors face when trying to market these soaps.

However, we already have many outlet owners who pay upfront for these soaps as they have already seen the effects that these soaps give to their customers' health & satisfaction, and their soaring sales of the product. It's a pity not all of them are willing to give it some time to see some difference these soaps would do to their revenue.     

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