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Question on Direct Sales Contract



 
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Old April 7th, 2008 Apr 7, 2008 7:06:25 PM -   #1 (permalink)
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Question Question on Direct Sales Contract

We are ready to perform Direct Sales calls to individual boutiques and larger specialty retail outlets for our particular style of imprinted apparel. Our question to all: How many feel it is necessary to have the "checked by an attorney" contract ready to use. We are lower budget at this time however, want protection. We've found various contracts online and have developed one for our particular needs, but I am no attorney. Any experiences or thoughts on this subject would be very helpful.
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Old April 8th, 2008 Apr 8, 2008 1:35:20 AM -   #2 (permalink)
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Default Re: Question on Direct Sales Contract

I'm currently pursuing getting my own designs, screen printed by me, into specialty retail stores.

I am interested, what would you need this contract for? Are you offering them an extended payment period and want to make sure they pay you on time? Or do you make the garments custom for them and want to make sure they don't back out of their end of the deal after you're customized them?

I haven't come across a reason to require a contract so far. The one store that does stock my designs (only about 10 shirts total so far) just paid me my money up front and I gave them my shirts.
 
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Old April 8th, 2008 Apr 8, 2008 4:54:10 PM -   #3 (permalink)
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Question Re: Question on Direct Sales Contract

Several reasons exist. Protection of your designs. Minimum set retail price (so your shirts are not sold at prices below your perceived value you have set for your designs. Ordering protection. You don't want an order for 120 shirts to come in and they back out on you. Most boutique style shops won't be much of a problem, you can even add amendments to your simple sales invoice to protect yourself, but if you get into the larger, multistore shops you might want to look into these things. I'm still trying to determine the overall need, hence my question to the forum.
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Old April 8th, 2008 Apr 8, 2008 9:43:14 PM -   #4 (permalink)
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Default Re: Question on Direct Sales Contract

Quote:
Originally Posted by animmike
Several reasons exist. Protection of your designs. Minimum set retail price (so your shirts are not sold at prices below your perceived value you have set for your designs. Ordering protection. You don't want an order for 120 shirts to come in and they back out on you. Most boutique style shops won't be much of a problem, you can even add amendments to your simple sales invoice to protect yourself, but if you get into the larger, multistore shops you might want to look into these things. I'm still trying to determine the overall need, hence my question to the forum.
Take care in the "Down Under"
To really protect your designs, get them copyrighted and your brand trademarked.
How will you know what they've sold your shirts for? If they want to sell them lower, why can't they? They bought them from you. I also don't think that a contract would be any more useful in small claims court than taking them without the contract.
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Old April 8th, 2008 Apr 8, 2008 10:05:36 PM -   #5 (permalink)
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Default Re: Question on Direct Sales Contract

You're right, Tim. The purchase order with all of the required info is all that is necessary, and will stand up in court if it comes to that.

Make sure the terms of the sale are on it (paid up front, net30, etc.), and that the authorized buyer signs it.

Also, if you come with contract in hand, it may be a barrier because they know you don't really know what you're doing.

As far as them selling below what you want them to, make sure you're charging them enough! They won't buy from you if they can't charge double what they paid for it.

You're going to have a hard time trying to dictate to a store what they sell your items for, especially being new.
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