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Advise on selling my spice company

post #1 of 3
Thread Starter 

Hello Chefs,

 

I own and operate my own spice company, and I work full time. My product line has done fairly well for what little amount of time I am able to carve out for it. It's been years and I just don't have the time required to push it to the next level. My company is very small, but it has a loyal online following.

 

I've been approached by another spice company who is very interested in my line of mixes to either blend, pack and distribute or to buy it outright. They've given me a non-disclosure agreement (which I haven't returned as yet).

 

They said the going "royaly" rate is $.05/bottle. That's only $.60/case. I've tried researching online but I don't even know what questions to type in to find the threads. I came across this one and I'm crossing my fingers that someone will be kind enough to point me in the right direction.

 

Much Appreciated,

Martin C.

post #2 of 3
Are they in a position to bring your line into a broad market? Do they have a marketing plan? I have an import and distribution company of over a 100 different organic and non organic products, one being organic herbs and spices with over 40 different items. My gross profit on each piece is about equivalent to 1$ but my net, after paying add, product support, sales rep cost, and general office admin and accounting is .15$ per unit. If i could get .05& per unit with no effort i would seriously consider it.
post #3 of 3

I would find out what kind of volume they are pushing on some of their other spice blends.  $0.05 doesn't sound like a lot, but if they are distributing nationwide and selling thousands of bottles a month, of each of their offerings then you look to make some decent money.  It's not money you can retire on, but for doing nothing it might well be worth it.  But you're gonna have to ask some questions first.

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