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Thread: Fabines re-seller?

  1. #1

    Default Fabines re-seller?

    So everyone, I'm trying to become a partner with Bunntewindel (Fabine diapers). Apparently you need to buy at least 200 cases from them ($19,610) to start. They have told me that they might go down to 100 cases and that they need to be fair to other re-sellers. I have asked for only about 10 cases to start with and I'm not sure why, but they won't do it. They said they send about 30-50 cases a month (each containing 64 diapers) to the US and I am currently trying to tell them that it simply isn't enough and that it's quite difficult to get them without crazy markup. I was thinking that 1900 to 3200 diapers a month isn't bad necessarily, but they could do much better; besides, a couple cases wouldn't be bad in my opinion.

    So, anybody have an idea that might convince them? I'm actually planning on re-selling exclusively here if by some miracle I could make it work.

    Any help would be great

  2. #2

    Default

    You don't mention whether the 200 case price includes shipping or not and if that price holds should they decide to offer you smaller quantities. I ordered two bags from them last year just to see what they were about. With shipping, they came to about $4.80 per diaper. You'd need to come down substantially from that to get me to order what to my estimation is in the same range as Bambino Teddy to Bellissimo. I think there's a certain hunger in the US market for them but you'd need to do your level best to determine what price point people are willing to pay and how much of that is based on novelty. From what you've said here, it doesn't sound all that practical.

  3. #3

    Default

    OK, the price you quoted comes out to $1.532 per diaper. That does not list whether or not they add any shipping charges on to the U.S. or not. What you have to figure out in your business plan is what your selling cost will be, figure in there the marketing of them, etc. and price breaks for full cases versus individual bags or sample packs.

    The cost to break into the business does not sound astronomical, most businesses need that sort of capital outlay for initial stock.

    What might be interesting is what the cost breaks would be if the business took off and you could order in larger quantities.

  4. #4

    Default

    I'm planning to buy at least 5 cases in bulk and sell in packs of ten. I know shipping will be bad

    up to 5 kg 36 EUR

    up to 10 kg 47 EUR

    up to 20kg 68 Euro

    31.5kg to 89 €

    Admittedly I have not used a conversion to usd calc yet, but I'm depending on on shipping only being a minor nuisance at 320 diapers. I'm not looking to make a huge profit honestly. I'm looking for a base, something where I can maybe make a few hundred dollars a month so every month I can keeping bringing more diapers in and lower prices (with a slight allotment for my own stash :3). So I'm not too worried about that. I'm just hung up on on why it would be unfair to other re-sellers if I got less cases?? I must have overlooked something, that's the only explanation.

    But if everything else fails, at least I know their customer service is remarkable

  5. #5

    Default



    Quote Originally Posted by PokeBro92 View Post
    ... Apparently you need to buy at least 200 cases from them ($19,610) to start. They have told me that they might go down to 100 cases and that they need to be fair to other re-sellers. I have asked for only about 10 cases to start with and I'm not sure why, but they won't do it.
    Shipping, and inconvenience. They're a manufacturer. They're not set up to ship small quantities to individuals or small retailers. Their absolute minimum to leave that facillity is a pallate of diapers. That's going to be about 20 cases right there. 200 probably fills up a cargo container or 18-wheeler with pallates. Hence their minimum order. That's the only shipping method they are prepared to use.

    It's also likely that a lot of their other infrastructure is set up around that amount. Billing, shipping labels, invoices, everything likely revolves around pallates. They would quite honestly have no way to *bill* you, let alone ship to you.

    Buntewindel will do individual orders though. But it's a very different beaste, and has a lot more overhead. They'll snag a pallate out of the chain and move it to another room. From that moment on, the entire process is going to be completely manual. Pallates are broken down into cases. Cases down into bags. bags are hand-packed back into new boxes (that have to be brought in from the packing area) Shipping labels have to be filled out. Customs declarations made. Pickups scheduled. Paperwork. Transporting all those individually posted pacakages over to the dock on pallate jacks. Trucks have to be loaded by hand. That truck is a separate contract and the driver will be paid to transport it and unload it at the postal facility. And all of those people involved have to be paid.

    And you're paying the "PITA charge". If you're not familiar with that, that's the Pain In The Ass charge. Anyone familiar with running a business recognizes that. You're getting charged a higher markup simply because you're being a PITA for them. Their margin is higher, but it's NOT the easy work they've gotten down to a smooth opearation, and they don't want to encourage you. So they'll humor you with a small order, but they'll charge you a lot for it, to encourage you to place a larger order next time. (or not at all, and go through one of their resellers instead) Their bread and butter is their retailers, they're the ones placing the regular orders. Places like ABU that'll order and entire cargo container at a time. That's how they *want* to do business. That's how they're *set up* to do business.

    You may be a higher margin, but you're a MUCH smaller volume. Despite the markup, they probably make more proffit in a day on their regular large orders than they clear on an entire month of their smaller sales. Seriously. Markup doesn't matter much when volume is so comparatively low. Those diaper machines will make ~2 cases of diapers a minute. If they can keep the line moving even for 80% of the time, that's over 1,000 cases a day. And you want to buy 10. Maybe twice a year. They can produce over 300,000 cases a year. You want 20 of those a year. The unfortunate truth is you are a fly on the wall. Don't get upset with them over this. It's like you're writing to the saw mill to order a few dozen 2x4's.

  6. #6

    Default



    Quote Originally Posted by bambinod View Post
    Shipping, and inconvenience. They're a manufacturer. They're not set up to ship small quantities to individuals or small retailers. Their absolute minimum to leave that facillity is a pallate of diapers. That's going to be about 20 cases right there. 200 probably fills up a cargo container or 18-wheeler with pallates. Hence their minimum order. That's the only shipping method they are prepared to use.

    It's also likely that a lot of their other infrastructure is set up around that amount. Billing, shipping labels, invoices, everything likely revolves around pallates. They would quite honestly have no way to *bill* you, let alone ship to you.

    Buntewindel will do individual orders though. But it's a very different beaste, and has a lot more overhead. They'll snag a pallate out of the chain and move it to another room. From that moment on, the entire process is going to be completely manual. Pallates are broken down into cases. Cases down into bags. bags are hand-packed back into new boxes (that have to be brought in from the packing area) Shipping labels have to be filled out. Customs declarations made. Pickups scheduled. Paperwork. Transporting all those individually posted pacakages over to the dock on pallate jacks. Trucks have to be loaded by hand. That truck is a separate contract and the driver will be paid to transport it and unload it at the postal facility. And all of those people involved have to be paid.

    And you're paying the "PITA charge". If you're not familiar with that, that's the Pain In The Ass charge. Anyone familiar with running a business recognizes that. You're getting charged a higher markup simply because you're being a PITA for them. Their margin is higher, but it's NOT the easy work they've gotten down to a smooth opearation, and they don't want to encourage you. So they'll humor you with a small order, but they'll charge you a lot for it, to encourage you to place a larger order next time. (or not at all, and go through one of their resellers instead) Their bread and butter is their retailers, they're the ones placing the regular orders. Places like ABU that'll order and entire cargo container at a time. That's how they *want* to do business. That's how they're *set up* to do business.

    You may be a higher margin, but you're a MUCH smaller volume. Despite the markup, they probably make more proffit in a day on their regular large orders than they clear on an entire month of their smaller sales. Seriously. Markup doesn't matter much when volume is so comparatively low. Those diaper machines will make ~2 cases of diapers a minute. If they can keep the line moving even for 80% of the time, that's over 1,000 cases a day. And you want to buy 10. Maybe twice a year. They can produce over 300,000 cases a year. You want 20 of those a year. The unfortunate truth is you are a fly on the wall. Don't get upset with them over this. It's like you're writing to the saw mill to order a few dozen 2x4's.
    I'm sure you're right. Nevertheless, they''ll contact me in the morning with a final answer and who's to say I can't buy the 100 cases down the road? $10,000 is a lot, but it's not terrible. Thanks for your responses everyone If nothing else, I learned quite a bit about manufacturers and now have more info should I try this again in the future

  7. #7

    Default

    Even worse is buying from overseas. I'm not sure exactly what kind of business they run. I don't know if they also make ordinary incontinence products or not, I'm sure they do.

    Being a truck driver, you can probably fit about 44,000lbs worth of diapers on to a trailer. Depending on the pallet size, and the weight of each pallet, I've hauled a double stacked Pampers load that had 52 pallets. Depending on the distance traveled and the weight of the shipment, costs can vary. I know in the US, that owner operating truck drivers usually won't haul anything if they aren't paid at least a dollar per mile. The same goes for big companies. However, there's companies that will haul a pallet for you sorta like FedEx. Without the home delivery. You will need someway to haul it from the logistics warehouse and they'll load it on to your vehicle, but their service ends there. You will have to either breakdown the pallet, or have machinery and a loading dock. I'm not sure where you are from but in the US, you have companies like Conway, AAA Cooper, Yellow and ect. That do small halls.
    Usually when you do large orders, most companies assist in part of the shipping costs.

  8. #8

    Default



    Quote Originally Posted by MeTaLMaNN1983 View Post
    Even worse is buying from overseas. I'm not sure exactly what kind of business they run. I don't know if they also make ordinary incontinence products or not, I'm sure they do.

    Being a truck driver, you can probably fit about 44,000lbs worth of diapers on to a trailer. Depending on the pallet size, and the weight of each pallet, I've hauled a double stacked Pampers load that had 52 pallets. Depending on the distance traveled and the weight of the shipment, costs can vary. I know in the US, that owner operating truck drivers usually won't haul anything if they aren't paid at least a dollar per mile. The same goes for big companies. However, there's companies that will haul a pallet for you sorta like FedEx. Without the home delivery. You will need someway to haul it from the logistics warehouse and they'll load it on to your vehicle, but their service ends there. You will have to either breakdown the pallet, or have machinery and a loading dock. I'm not sure where you are from but in the US, you have companies like Conway, AAA Cooper, Yellow and ect. That do small halls.
    Usually when you do large orders, most companies assist in part of the shipping costs.
    Yea, sounds like I have to go bulk or go home (not a bad tagline :P). I'll just have to see if they humor me, and I'm sure that might not work too great :P

  9. #9

    Default

    If I had the money to throw away I would so buy 3200 fabine diapers from you in a month.

  10. #10
    babyscooby

    Default

    you better go get some formal business training before you go off and do something like this.
    You will be shipping full pallets, you cannot use your 32KG shipping rate like that.
    Then you will not want less then 1 pallet. Then they will charge you an extra massive for a liftgate service because I doubt you have a loading dock. 200 cases is there for a reason, because otherwise your going to place one order and go broke.

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