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DRM · June 5th, 2008

I'm new here and have been searching through all of the forums. One question that I'm having trouble with is with retailer pricing. All my research has brought me to these 2 options for determining wholesale price for retailers. Which option should I go with:

Option #1 (Based on Retail Price Set)
Charge retailer 50% of retail price set by both I and the retailer, regardless of quantity ordered (i.e. retail price=$25, wholesale price=$12.50, regardless of quantity ordered,36 or 1000 pcs).

Or Option #2 (Based on Manufacturing Costs)
Charge 2.5 times the manufacturing costs determined by quantity ordered (i.e. cost to make shirt=$5 + $10-double + $2.50-half =$17.50). If I go with this option? When and how should I discount based on quantity ordered? Or should I just stick to one price?

Your input would be greatly appreciated! I have an order for 1000 pcs and I'm not sure which route to take on pricing a wholesale quote that would be acceptable to any retailer. Thanks!

TLH41 · June 19th, 2008

Well, there are several ways to skin a cat but as both a wholesaler and a retailer I would say two things:

1) The retailer will appreciate a 50% discount, sometimes even a higher % for an order as large as 1000 pieces. I don't know what item you are selling, nor what the retail value is...in other words do your number one option but add a sliding scale for higher qty purchase if you can.

2) You have to charge enough to make it worth your time. The retailer can and perhaps should set their own retail price, just make sure that you are not losing money on the deal.

DRM · June 19th, 2008

Quote:

Originally Posted by TLH41


	add a sliding scale for higher qty purchase if you can.

Thank you for your reply. I was wondering if you have a system for determining your sliding scale for over 1000 pcs. Also...do you have a minimum required order for retailers? What would be an acceptable number. Thanks again! =)

TLH41 · June 20th, 2008

I have minimums but they vary by product. My business is too off-the-wall and niche oriented to really be applicable to most standard T-shirt businesses, but you too can look at what work is involved with any given product and figure the lowest number you wish to produce for wholesale orders.

My discount structures are also kind of fluid, but I usually start with Retail, figure my Max Discount, and then set up a sliding scale anywhere from 100 pieces to 1000 and give each "price break" an additional % off. So it depends on how many breaks you have and what your Max and Min prices will be.

Hope that helps a little...