Selling Another Vendor's Product at My Tent

PepperDaddy

PepperDaddy

I am going to be in a large BBQ trade show at the end of Sep. that has been put on for the last 10 years by a local BBQ shop.  That BBQ shop is also carrying my sauce.  He bought 3 cases. I told him I was at the farmer's market down the road from him and was letting everyone know they could also get my sauce at his store and that maybe in a few weeks he would see a few sales.  He told me when he bought the sauce that demand for BBQ sauces and condiments is very low in his store and most are there for the equipment.  He then said this:  "Maybe we could work out a deal where you could sell my BBQ sauce in your booth during the event and I would give you a take of my proceeds."
 
Part of me wants to do this because he's a super nice guy, has great connections in the BBQ scene and bought 3 cases from me.  Part of says if I do it now I'll have to do it every year and it could cut into my profits.
 
I'm leaning towards selling it just to be a team player and help out a local guy who helped me out.  It may also look as though I'm part of the sponsorship since his shop puts on this event.  Everyone in the BBQ circuit in ST. Louis knows and likes him. I also plan to give a $1/bottle discount to all BBQ team members, which will hopefully get it in the hands of many local restaurant owners and maybe on their tables at the event.  That email would go through the shop owner.  So there’s some back scratching going on here as well.
 
Any thoughts?  Should I do this?
 
Ken
 
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You don't make a BBQ sauce so YES! This is an opp for YOU.
 
This is a BBQ event, not hot sauce. People will approach you for his BBQ sauce, then you have to sell them on your hot sauces. But this is the attraction to your table (besides your own sauces). Don't miss out.
 
You can even work in a pitch where you can tell people they can amp up the heat of the BBQ sauce with your sauces.
 
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JoynersHotPeppers said:
For me, networking with the right person can trump almost all future negatives. I am sure people will chime it but I say go with your gut. If it feels right, it probably is the right thing to do. 
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+1.. networking with people in the beginning is almost always a good thing, and often helps you get your foot in the door with a lot of things that may outweight anything in the end. And like anywhere else, every community has its share of crappy people and sleazeballs, but there are often many more good and decent people, and the pepper/hot sauce industry is no exception.
 
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just a heads up - Be sure to read the festival application fine print. Every CA festival I've done this year (I've done 12) has had terms regarding only selling your own products. The same holds true for every farmers market that I do which includes two market organizations and a corporate account. And every one of those circumstances I am not allowed to sell anyone's product but my own. So just make sure to cover your bases and check to make sure you can do this before considering it.
 
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The Hot Pepper said:
LDHS that's a very good point but there may be a way to do it by being a distributor? Semantics?
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Yes - at one festival I do there's "Charlie's" or "Uncle Charlie's" or something - they offer 60 products that they are re-selling. I believe they are a distributor, and that might be the difference. 
 
For Farmer's Markets, it's strictly taboo as it hurts the integrity of the market. Flea markets are different. ;)

PepperDaddy said:
I'll run that by him but it's his festival. He makes the rules.
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Oh, in that case, knock yourself out. 
 
Bear in mind that if you do, you will be competing with yourself for your customer's sales dollar. This may have been mentioned...not just competing against product lines, but IMO each customer has a ceiling that they're comfortable spending at a festival booth (and a limit to what they can physically carry).  So you'll definitely stand to lose sales of your own products. 
 
Another potential downside is distracting from the tremendous marketing opportunity that a festival affords you.  You're diluting the focus from your products to ALL of the products, including your own. 
 
It's a tough call. Are you also paying for the booth? If you're slinging his products, get your booth for free. 
 
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Lucky Dog Hot Sauce said:
 
Yes - at one festival I do there's "Charlie's" or "Uncle Charlie's" or something - they offer 60 products that they are re-selling. I believe they are a distributor, and that might be the difference. 
 
For Farmer's Markets, it's strictly taboo as it hurts the integrity of the market. Flea markets are different. ;)

 
Oh, in that case, knock yourself out. 
 
Bear in mind that if you do, you will be competing with yourself for your customer's sales dollar. This may have been mentioned...not just competing against product lines, but IMO each customer has a ceiling that they're comfortable spending at a festival booth (and a limit to what they can physically carry).  So you'll definitely stand to lose sales of your own products. 
 
Another potential downside is distracting from the tremendous marketing opportunity that a festival affords you.  You're diluting the focus from your products to ALL of the products, including your own. 
 
It's a tough call. Are you also paying for the booth? If you're slinging his products, get your booth for free. 
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After re-reading his email, he may be asking me to sell at the farmers market as well.  I have an email into the market manager but I'm sure the answer is no, which I am okay with. However, I will sell his stuff at his BBQ festival.  My concern all along has been what you mentioned - that it will take sales away from my product.  On the other hand I think it increases my visibility/credibility w/in the local BBQ scene. He did mention I would get a percentage of each sale, TBD.  I doubt he would knock off the $195 fee, especially since he wrote me a check for $120 about the same time I wrote him a check for $195.
 
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Yes but you'll be reducing visibility on your product by diluting your booth with other things.

The marketing aspect is an important consideration for a festival. Use your 10x10 space to maximum effect to promote your brand.

My opinion of course, but unless it's a special circumstance with a non-competing item (like when I had some Pure Evil in NY) there's no way I'd do it. You're potentially making more $ but at a cost of diluting your marketing opportunity by causing people to lose focus on your brand.

That's a trade off I wouldn't make.
 
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Okay wait. The BBQ shop is hosting the large event... and they want you to sell their sauce... I was onboard with this when I thought you meant one sauce, as in, the host's own brand of sauce. You'd be the table with the official BBQ sauce of the event. You could work that angle. But do you mean he just wants you to sell random BBQ sauces that his shop carries?
 
In this case... tell the freeloader to buy his own table, LOL.
 
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Ah. Then I stick to my original answer.
 
Since he is the host he must be known to the BBQ community there and you can use this to your advantage, having the "official" sauce at your table.
 
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The Hot Pepper said:
Ah. Then I stick to my original answer.
 
Since he is the host he must be known to the BBQ community there and you can use this to your advantage, having the "official" sauce at your table.
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That's a solid point actually , but make sure you can emphasize your own product in the process.
 
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I'm debating vending at a big 2 day bacon fest near me.
The manager asked if I had a bacon flavored hot sauce to sell, which I don't.
she said it wasn't a deal breaker, but that the people attending are usually bacon freaks and it'd only help my cause.
i have a buddy who does a bacon sauce, and offered to wholesale to me real cheap to use as a prop to get people to my table...
this is a once a year type thing...
considering it....
bottom line, whatever gets people to the table...
then i can pitch them on my sauces...
if they buy the bacon one, i make money.
if they buy mine as well, i have a potential future customer for life...
 
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Downside: At a bacon fest they might think bacon-flavored things aren't as good as real bacon things and they get a negative impression of your products by proxy. 
 
A bad impression can lose you a customer for life. 
 
2 sides to that coin. ;)
 
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Can said buddy with the bacon sauce be there to help out so you guys are just "sharing the booth" or will you be fronting your sauces and theirs in the booth?
 
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salsalady said:
Can said buddy with the bacon sauce be there to help out so you guys are just "sharing the booth" or will you be fronting your sauces and theirs in the booth?
 
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The fest is about two hours away, and not part of what I would consider my normal 'circuit'. I have nothing else planned that weekend, and looking to stay as busy as possible as the FM season starts to wind down, so I thought it would be interesting.
 
I know the bacon sauce already...There are only a few somewhat high profile bacon sauces out there right now, so I don't feel much hesitance in regards to placing it on the same table as my sauces....We'd maintain his label and I wouldnt be selling it as my own....Just giving the people the option.....
 
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What happens if you have a case of his bacon sauce left over at the end of the festival? Do you now own them or does he buy them back?  He could just give you a few cases and say $1.50 for every bottle you sell.
 
Another question is this:  Does having his bacon sauce at your table sell more of your sauce or his.  People will stop by your tent regardless.  They won't know what you have until after they stop by and hopefully sample your sauce.  I think they are probably more likely to buy one of your sauces if his are not present, especially since it a bacon festival.  Now if you two split a tent and gas, that seems better.
 
A tough call.  If you do it I would lean toward him giving a set amount for each sale and not buying the sauce outright.
 
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PepperDaddy said:
What happens if you have a case of his bacon sauce left over at the end of the festival? Do you now own them or does he buy them back?  He could just give you a few cases and say $1.50 for every bottle you sell.
 
Another question is this:  Does having his bacon sauce at your table sell more of your sauce or his.  People will stop by your tent regardless.  They won't know what you have until after they stop by and hopefully sample your sauce.  I think they are probably more likely to buy one of your sauces if his are not present, especially since it a bacon festival.  Now if you two split a tent and gas, that seems better.
 
A tough call.  If you do it I would lean toward him giving a set amount for each sale and not buying the sauce outright.
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He agreed to let me return whatever i don't sell...I'd go modest in ordering as it is a one-shot deal, so if i happened to sell out half way through, then at least i know i got people to the table and take it from there thru the remainder of the day...but i do have that return option open..first thing i asked....
 
When I was inquiring about the event, the manager asked me if i had a bacon flavored sauce that i'd be selling, I told her i did not and was that a deal breaker since it is a 'bacon fest'. she said that it was not, but in past years it is a bacon heavy (no pun intended) loving audience and it would only significantly help my overall cause.....i got a little gun shy from that point...i am uber confident people will like my sauces and that i'll come home with some $$, but if I could have that little extra bit of attention towards my booth, it can't hurt.....
 
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