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ducks33 · April 25th, 2007

I plan on selling to bricks and mortar retailers as well as selling directly to consumers via my website. I know it's a bad idea to undercut the price of the retail stores selling my shirts. My question is, when comparing my web price to retailers prices, do I factor shipping costs into my websites cost?

In other words, if retailers sell my shirts for $22, and I were to sell via my website for $20 + $4 shipping (total = $24), am I undercutting them selling at $20, or do I factor in the shipping costs at $24? How do retailers look at this? Anyone know? Thanks for your thoughts.

Rodney · April 26th, 2007

This recent thread is all about that: Online store price versus retail price

badalou · April 26th, 2007

Quote:

Originally Posted by ducks33


	I plan on selling to bricks and mortar retailers as well as selling directly to consumers via my website. I know it's a bad idea to undercut the price of the retail stores selling my shirts. My question is, when comparing my web price to retailers prices, do I factor shipping costs into my websites cost? In other words, if retailers sell my shirts for $22, and I were to sell via my website for $20 + $4 shipping (total = $24), am I undercutting them selling at $20, or do I factor in the shipping costs at $24? How do retailers look at this? Anyone know? Thanks for your thoughts.

First never tell your retail client that you are selling the product that you sell to them. Bad business. You are now a competitor. If you do sell the shirt then I would sell for the same price or higher and not make shipping a factor. I sell back east and the shipping charges are more than if I ship to a store in California... So if I use your wording the price of the shirt is lower in cal then in Maine. Just leave it out of the equation. Lou

Comin'OutSwingin · April 26th, 2007

Lou, I don't think it's so bad to let the retailers know that you sell through your own site. Actually, if you do sell through your own site, I think it's better to be upfront with the retailer and let them know. If you are any good, and the retailer is just a little net savvy, it won't take them long to figure it out anyway.

The retailer would need to understand that you are trying to reach customers in other places, not just the city they happened to be located. And the only way for you to do that, is to have an online store.

If you made your online prices about the same as the retailer would be selling them for, plus shipping, customers in the same city would probably be more apt to go to the store to buy the shirt, than pay more money (with the shipping) AND have to wait for the shirt.

DAGuide · April 26th, 2007

I would sell the shirts for what the stores are selling them for or higher. They are just going to look at the price (not price + shipping) and see that you are undercutting them. You should consider using your online store to test market some new designs / products and then share this information with your retailers. Use it as a market research tool that you are going to share the info with your retailers. It can help them decide which graphics to carry.

I usually go to a manufacturer's website when I can't find my size at a store if I really want it. Best wishes.

ducks33 · April 26th, 2007

Thanks for the input. I definiteley won't advertise the fact that I'm selling online to my retail stores, but like "comin'out" said, it would take them about 10 seconds online to find out. If they asked me about it, I'd be upfront with them.

From an online marketing standpoint, what do you think about offering free shipping, but selling the shirts online for $4 more? Total price is the same, but it would keep me pricing about $2-$4 more than my retailers.

JoshEllsworth · April 26th, 2007

Quote:

Originally Posted by ducks33


	Thanks for the input. I definiteley won't advertise the fact that I'm selling online to my retail stores, but like "comin'out" said, it would take them about 10 seconds online to find out. If they asked me about it, I'd be upfront with them. From an online marketing standpoint, what do you think about offering free shipping, but selling the shirts online for $4 more? Total price is the same, but it would keep me pricing about $2-$4 more than my retailers.

I think selling them at the same pricing is a good idea. Basically, the price is the price, that way it is not negotiable with the customer and does not become complicated for the retailers and customers to understand.

I also agree with Greg and would be completely up front with your retailers and let them know that you have an online store for creating brand awareness and sales. Consider listing the retailers on your site so that potential customers can find a retailer in their area. I think it can definitely be construed as a major positive - if you use it as part of your pitch.

Maybe even have the retailer fulfill certain web orders on items that they have in stock - if it makes geographic sense.

badalou · April 27th, 2007

Quote:

Originally Posted by Comin'OutSwingin


	Lou, I don't think it's so bad to let the retailers know that you sell through your own site. Actually, if you do sell through your own site, I think it's better to be upfront with the retailer and let them know. If you are any good, and the retailer is just a little net savvy, it won't take them long to figure it out anyway. The retailer would need to understand that you are trying to reach customers in other places, not just the city they happened to be located. And the only way for you to do that, is to have an online store. If you made your online prices about the same as the retailer would be selling them for, plus shipping, customers in the same city would probably be more apt to go to the store to buy the shirt, than pay more money (with the shipping) AND have to wait for the shirt.

I use a product rep back east and he told me if he even thinks I am selling the same thing on line as he is selling to the stores he would drop me. He said retailers want to buy from suppliers not commetitors. He said a lot of the stores also want to sell the product I sell them on line as well.

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