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    2 Replies Latest reply on May 4, 2010 12:30 PM by jeeper

    sales proposal to a well known online retailer....HELP!!

    jeeper Newbie
      I have several questions so bare with me as I try to explain our company and what we are trying to do.

      We are a new company (in business 1 year) that manufactures steel bumpers and other off-road components for Jeeps and we are currently putting together a proposal for a well known online/catalog retailer, as we would like them to carry our products. We already have our own website where consumers can purchase our products.

      What we are wondering is how to go about pricing the items for the proposal. For example a product we sell may cost (materials, labor, overhead) us $900.00 to fabricate and with our desired margin, our price to the public might be $1300.00 plus shipping and handling. Without screwing ourselves out of needed profits, what is the best way to price the products to the retailer to allow them profits also? We'd like to allow this retailer price breaks for larger quantities purchased. Should we allow this retailer to set their own retail price or only allow them to sell it for what we are also selling it for on our website? If you are a retailer and you are purchasing a larger dollar item, say the cost to purchase this item from the manufacturer were $500, what kind of margins are you as a retailer looking to get out of the item? What if the MSRP only allows you a 10% margin from what your cost of purchasing the item was, would you think it was fair? We'd like to offer this retailer a good sales opportunity without raising our own retail prices and without cutting our throats offering them a "good deal."

      I'm sure there is a lot of information missing that would better help you answer our questions, so if it is unclear, please ask.