Home: Message List - PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

puzzleman — Wed, 02 Apr 2008 12:51:27 GMT

Your products cost $.15 to produce. Does this cover your overhead? What is the amount of investors returns expected? What is the amount of profit that your investors are expecting?

These are questions that need to be answered. From these numbers you can figure what is your bottom line price that you will take. When negotiating with your first buyer, I would go with a slightly higher price and see what their temperature is. If they bite at that price, great. If not, you will have wiggle room to give them a discount based on whatever (volume, first time, new product, etc) and still make money.

As far as the industry standard, I wouldn't worry about it. If you feel the deal is fair after crunching the numbers, then you should be satisfied. Also, if this is your first customer, you will have a learning curve, so if you don't make as much as you could have, chalk it up to learning. Remember to get at least the minimum price you need to cover the costs from above.

Jim

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

Lighthouse24 — Wed, 02 Apr 2008 05:06:09 GMT

As for additional information, what is the product exactly? What type of wholesaler is currently interested, and what types of customers or businesses would that wholesaler be supplying it to?

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

virtualdjs — Wed, 02 Apr 2008 01:42:06 GMT

I just noticed you are part of SCORE. I actually emailed our local chapter here in Sacramento, CA and still haven't herd back. We are a new and still forming corp, 10 on the board, all investors except for the inventor. There was a business plan, I'm sure it's outdated. Marketing, currently I'm the only one really pushing to get this to market. You said go to Members Page, where would that be?

Thanks,
Matt

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

LUCKIEST — Wed, 02 Apr 2008 01:14:33 GMT

Wholesale pricing . . . what to do.
Tell us more. Go to Members page and tell us more.
Where are you located?? Like City and State)??
How long have you been in business?? Do you have an Accountant??
Do you have a Business and Marketing Plan??
The more you share with us, the better we can help you.
LUCKIEST

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

virtualdjs — Wed, 02 Apr 2008 00:30:34 GMT

Thanks for your feedback. What specific information would you like to know?

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

Lighthouse24 — Wed, 02 Apr 2008 00:26:18 GMT

Without knowing anything else, the numbers you're proposing don't seem unreasonable. But at the risk of making things more complicated rather than simpler, the real answer depends a lot on what the specific product is, what competitors are wholesaling same/similar products for (or if this product is unique, on the wholesale cost of what it replaces and the improvements/benefits this offers over that). Another factor may be if it costs you significantly less or more to make or sell this in quantity, and if quantity pricing and/or payment terms would be a part of your profit calculation. As for shipping, certain things could create extra costs there as well ("live" items, delicate/fragile items, or supplies/materials containing various chemicals). There is no "industry standard" overall. If you can provide more info, I can try to offer more detail.

Re: PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

virtualdjs — Tue, 01 Apr 2008 23:42:04 GMT

Also, they might want us to drop ship too.

PLEASE HELP PLEASE HELP! Wholesale pricing . . . what to do.

virtualdjs — Tue, 01 Apr 2008 23:35:59 GMT

I'm putting a floral product on the market (I'm no florist either) I have a wholesale company intrested. It costs us about 15 cents to produce the unit and figure the wholesale cost should be around 30 cents with a retail around 85 cents. Is this going to be what the wholesaler is expecting to make on the product? Is there a standard markup in the industry? I just don't want to look dumb or price myself over or under. Any help or directions you can point me in would be helpful and greatly appreciated.