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?

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.

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

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

Take your cost X 1.20

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??

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.

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

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.

Ok thanks.

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...

:thumbsup

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.

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. :1orglaugh Thanks for your input.

so what kind of product are you selling anyway?

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.

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.

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.

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?