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DRM · June 5th, 2008

If you sell wholesale to retailers, do you set the price of retail or does the retailer? Also, if you set the pricing, do you set the price for the retailer based on what price you sell on your own online store, or is the retailer able to just sell the shirt at whatever price they want after purchase?

mumzie · June 5th, 2008

The retailer sets their pricing based on their market and their customers. Your pricing to them only determines whether they will buy your product.

Once the retailer purchases the product, they will sell it for whatever price they feel is proper.

DRM · June 5th, 2008

Quote:

Originally Posted by mumzie


	The retailer sets their pricing based on their market and their customers. Your pricing to them only determines whether they will buy your product. Once the retailer purchases the product, they will sell it for whatever price they feel is proper.

Thank you so much for your response. It definitely helps! Another question is if you initially started selling online at a specific price say-$25/pc...on your own site and THEN started to sell to retail. Should you change your pricing if retailer sells for less?

Also, do you or anyone ever come across people referring you to retailers and asking for a cut of the profit? I have this situation where a promoter got in touch with me for a retailer and is asking for a cut of the profit because he got the retailer to offer the purchase of 1000 pcs. If you think it is fair, should I give a specific percentage based on qty ordered. I guess you can think of it as an agent promoting your product. Thoughts appreciated. Thanks!

Comin'OutSwingin · June 5th, 2008

Quote:

Originally Posted by DRM


	Also, do you or anyone ever come across people referring you to retailers and asking for a cut of the profit? I have this situation where a promoter got in touch with me for a retailer and is asking for a cut of the profit because he got the retailer to offer the purchase of 1000 pcs. If you think it is fair, should I give a specific percentage based on qty ordered. I guess you can think of it as an agent promoting your product. Thoughts appreciated. Thanks!

Tell them kindly, "thank you", and keep it moving!

You didn't employ them, and don't owe them anything.

mumzie · June 5th, 2008

My reply would be that the promoter is certainly welcome to purchase and resell the shirts to the retailer.
I would probably give him some sort of thank you gift, depending on the size of the order.
Unless he then wanted to sell for me full time, I wouldn't give him any percentage.

As to matching the retailer in price - if you're selling the shirts to the retailer for $10, and they're selling them for $20, and you're selling the exact thing for $25, if the retailer is a visible one, you probably won't sell any shirts. But - if you're selling them for $15, your retailer could possibly stop buying from you.

What I've done - if I wholesale a design, I don't retail it. And vice versa. That way those questions don't ever come up.

shirt pimp · June 6th, 2008

sometimes when im shopping, i see shirts that already have a factory tag with a bar code and a MSRP price already there

isnt it best to set your own MSRP? for example, if you want your shirts to sell in the 40-60 dollar range, you surely dont want a retailer selling them for $25, if you want your brand to be seen as a "higher end" brand, correct??

Comin'OutSwingin · June 6th, 2008

The way to have some control over that is the amount you charge the retailer. If you want your shirts to retail in the $40-$60 range, then you're going to be wholesaling them in the $20-$30 range.

Trust me, a retailer isn't going to pay you $20 for your shirt, then turn around and retail it for $25.

Typically, they will just double what they paid. Sometimes, if it's a hot product they will even charge more than double, and price whatever they think the market will bear.

shirt pimp · June 6th, 2008

can you tell me why some companies put tags with the MSRP on their shirts??

Comin'OutSwingin · June 6th, 2008

Mainly, it's to give the retailers and end customers an idea of what the manufacturers think the product should retail for.

It's the "manufacturers suggested retail price".

Lots of times you will see this on the bottom portion of a perforated hang tag. I've had instances when I knew what the msrp was on a shirt, but the retailer had taken the perforated part off, and charged more for the shirt because the market would bear it.

But, really it's just a guide.

Girlzndollz · June 6th, 2008

Quote:

Originally Posted by shirt pimp


	can you tell me why some companies put tags with the MSRP on their shirts??

Look at Macy's. All of those shirts are pre-tagged with prices. What does Macy's do? Sets a sign on top of the display rack saying "25% off original prices". I think that's where the expression "never pay retail" may have come from.

fivetees · June 6th, 2008

MSRP gives the retailer the option to put the item on sale and the customer to see original selling price versus the sales price. Also you should not under cut your customers retail price with your own online store. This could create a bad situation and you losing your brick and mortor presence if a customer challenges a stores price by stating they saw it cheaper on your site.

DRM · June 7th, 2008

Thanks everyone!!! I really appreciate all the input. So much to learn.

osix · June 7th, 2008

Well buying Online and buying in Store have it slight different ,
eg. online purchase have related FEE that add to the cost of buyer..

online may sell for $25.. but there will be shipping cost of XXX value , let say $3
and lso if payment by credit cards or other service may cost another $1-2

so it add up .>making a customer more likely to buy for $30 in a store where there can feel and touch and see the design upfront .. for $30 ..

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