How do I set a wholesale price for my product? - GoFuckYourself.com

bushwacker · 11-05-2010, 12:21 PM

I have a product, that I have been selling retail for $44.95. I have recently been contacted by a wholesaler who would like to carry the product. What prices should I sell the product to the wholesaler?

candyflip · 11-05-2010, 12:23 PM

I buy a few products wholesale and resell them.

One for instance I know costs $4 to make, I buy wholesale for for $8-10 and sell for $16-20.

Davy · 11-05-2010, 12:24 PM

Start with your production costs, add your profit, consider all other costs and then come up with a price.

bushwacker · 11-05-2010, 12:30 PM

Quote:

Originally Posted by candyflip

I buy a few products wholesale and resell them.

One for instance I know costs $4 to make, I buy wholesale for for $8-10 and sell for $16-20.

Does the retailer you by from, also sell the product for $16 - $20?

CIVMatt · 11-05-2010, 12:32 PM

Quote:

Originally Posted by bushwacker

I have a product, that I have been selling retail for $44.95. I have recently been contacted by a wholesaler who would like to carry the product. What prices should I sell the product to the wholesaler?

Take your cost X 1.20

bushwacker · 11-05-2010, 12:43 PM

This is what I heard, not sure if this is right...what the cost is to make it, double that for wholesale, then double again for retail??

candyflip · 11-05-2010, 12:45 PM

Quote:

Originally Posted by bushwacker

Does the retailer you by from, also sell the product for $16 - $20?

Yes they do. And the also control the pricing, so I can't sell them for $10 if I want to. I have to be within a certain percentage of their highest suggest retail price.

candyflip · 11-05-2010, 12:46 PM

Quote:

Originally Posted by bushwacker

This is what I heard, not sure if this is right...what the cost is to make it, double that for wholesale, then double again for retail??

After looking through the product list of one supplier, that looks to be EXACTLY what they did.

stocktrader23 · 11-05-2010, 12:46 PM

Quote:

Originally Posted by bushwacker

This is what I heard, not sure if this is right...what the cost is to make it, double that for wholesale, then double again for retail??

I wish, this may be what it was like long ago but markups on most stuff now are 10 to 30%. If you can double your money you are doing great on the retail end.

bushwacker · 11-05-2010, 12:47 PM

Quote:

Originally Posted by candyflip

Yes they do. And the also control the pricing, so I can't sell them for $10 if I want to. I have to be within a certain percentage of their highest suggest retail price.

Ok thanks.

woj · 11-05-2010, 12:49 PM

there is no one set rule, it depends on multiple factors including volume... makes a huge difference if someone is buying 2 boxes, or a million boxes...

bushwacker · 11-05-2010, 12:57 PM

Quote:

Originally Posted by woj

there is no one set rule, it depends on multiple factors including volume... makes a huge difference if someone is buying 2 boxes, or a million boxes...

selena · 11-05-2010, 12:59 PM

Quote:

Originally Posted by bushwacker

This is what I heard, not sure if this is right...what the cost is to make it, double that for wholesale, then double again for retail??

That is the rough formula for several things that I sell. It isn't a one size fits all solution though.

bushwacker · 11-05-2010, 01:23 PM

Quote:

Originally Posted by selena

That is the rough formula for several things that I sell. It isn't a one size fits all solution though.

I think I shall go with that formula. Thanks for all the responses.

ottopottomouse · 11-05-2010, 01:28 PM

Quote:

Originally Posted by bushwacker

I have a product, that I have been selling retail for $44.95. I have recently been contacted by a wholesaler who would like to carry the product. What prices should I sell the product to the wholesaler?

As much as you think you can ask for without them thinking you're being cheeky.

Depends on all sorts of things. How many they are going to buy each time, how long they will buy them for, whether they will expect you to give them 90 days credit, whether they are going to attempt to return unsold/damaged-by-them stock to you that you won't be able to shift yourself, is delivery in your price, and if their purchasing manager is a fit bird.

bushwacker · 11-05-2010, 01:30 PM

Quote:

Originally Posted by ottopottomouse

As much as you think you can ask for without them thinking you're being cheeky.

Depends on all sorts of things. How many they are going to buy each time, how long they will buy them for, whether they will expect you to give them 90 days credit, whether they are going to attempt to return unsold/damaged-by-them stock to you that you won't be able to shift yourself, is delivery in your price, and if their purchasing manager is a fit bird.

Fit bird.......I haven't heard that in awhile.

Thanks for your input.

woj · 11-05-2010, 02:26 PM

so what kind of product are you selling anyway?

dyna mo · 11-05-2010, 02:31 PM

depends on the product and who you are selling it to, in addition to quantity.

for my mainstream product, wholesalers buy quantity at cost + 20%, the big wholesalers whittle that down to cost +10%.

in general, i've found that wholesale buyers are quite savvy and if they determine your markup is too much or unfair, they will walk away.

mineistaken · 11-05-2010, 02:39 PM

It depends on the nature of product. In one niche 10-20% markups is a norm, in another - at least 50%. You can not tell without knowing the product. Also it depends - brand/unbrabded and many other factors. Set the price you think is fair and think - would you as a retailer buy it for that price if you were the guy on the other end of the deal.

dyna mo · 11-05-2010, 02:47 PM

i misspoke earlier, i said markup when i meant to say pricing model. depending on your product, wholesalers will talk terms based on either a cost + pricing model or a margin model. best thing to do is research which pricing model your product is typically wholesaled.

bushwacker · 11-05-2010, 03:34 PM

Quote:

Originally Posted by mineistaken

It depends on the nature of product. In one niche 10-20% markups is a norm, in another - at least 50%. You can not tell without knowing the product. Also it depends - brand/unbrabded and many other factors. Set the price you think is fair and think - would you as a retailer buy it for that price if you were the guy on the other end of the deal.

It's priced comparably with other similar products. It's a product used on boats, everything in the marine industry is overpriced. I guess my question is do most wholesalers expect to double there money?

11-05-2010, 12:21 PM	#1
bushwacker Confirmed User Join Date: Jun 2002 Location: so. fla. Posts: 2,817	How do I set a wholesale price for my product? I have a product, that I have been selling retail for $44.95. I have recently been contacted by a wholesaler who would like to carry the product. What prices should I sell the product to the wholesaler?

11-05-2010, 12:23 PM	#2
candyflip Carpe Visio Industry Role: Join Date: Jul 2002 Location: New York Posts: 43,061	I buy a few products wholesale and resell them. One for instance I know costs $4 to make, I buy wholesale for for $8-10 and sell for $16-20. __________________ Spend you some brain. Email Me

11-05-2010, 12:24 PM	#3
Davy Confirmed User Industry Role: Join Date: Apr 2006 Location: Germany Posts: 4,323	Start with your production costs, add your profit, consider all other costs and then come up with a price. __________________ --- ICQ 14-76-98 <-- I don't use this at all

11-05-2010, 12:49 PM	#11
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	there is no one set rule, it depends on multiple factors including volume... makes a huge difference if someone is buying 2 boxes, or a million boxes... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

11-05-2010, 02:26 PM	#17
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	so what kind of product are you selling anyway? __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

11-05-2010, 12:43 PM	#6
bushwacker Confirmed User Join Date: Jun 2002 Location: so. fla. Posts: 2,817	This is what I heard, not sure if this is right...what the cost is to make it, double that for wholesale, then double again for retail??

11-05-2010, 02:31 PM	#18
dyna mo The People's Post Industry Role: Join Date: Dec 2008 Location: invisible 7-11 Posts: 65,051	depends on the product and who you are selling it to, in addition to quantity. for my mainstream product, wholesalers buy quantity at cost + 20%, the big wholesalers whittle that down to cost +10%. in general, i've found that wholesale buyers are quite savvy and if they determine your markup is too much or unfair, they will walk away.

11-05-2010, 02:39 PM	#19
mineistaken See signature :) Industry Role: Join Date: Apr 2007 Location: ICQ 363 097 773 Posts: 29,656	It depends on the nature of product. In one niche 10-20% markups is a norm, in another - at least 50%. You can not tell without knowing the product. Also it depends - brand/unbrabded and many other factors. Set the price you think is fair and think - would you as a retailer buy it for that price if you were the guy on the other end of the deal.

11-05-2010, 02:47 PM	#20
dyna mo The People's Post Industry Role: Join Date: Dec 2008 Location: invisible 7-11 Posts: 65,051	i misspoke earlier, i said markup when i meant to say pricing model. depending on your product, wholesalers will talk terms based on either a cost + pricing model or a margin model. best thing to do is research which pricing model your product is typically wholesaled.