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Discussion Starter #1
Hi guys I am new at this so please bare with this example.

Say for example I have a blue shirt. Blue shirts currently are selling great at big retail stores such as Macys or Bloomingdales ect ect. I meet up with a buyer from one of these retail stores and I will be pitching to them my blue shirt. All goes well and the buyer wants to purchase my blue shirt.

If the big retail company are currently selling blue shirts for 20 dollars at their stores. How much should I be selling my shirts to the retailers for? Should I be going by the keystone standard of selling each for 10 dollars since they are selling the shirts for 20?

Is there any techniques in pricing this blue shirt perfectly where I make money and the retailer feels comfortable with my prices?

Any feedback would be appreciated. Thanks
 

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Say for example I have a blue shirt. Blue shirts currently are selling great at big retail stores such as Macys or Bloomingdales ect ect. I meet up with a buyer from one of these retail stores and I will be pitching to them my blue shirt. All goes well and the buyer wants to purchase my blue shirt.
I know this is just an example, but I think this applies as good general advice...

Don't be the 10th vendor to pitch a blue shirt. Be the first to pitch a red shirt.

I think if you walk into a meeting with a buyer of a major department store and pitch them something similar to what's already on their sales floor, your chances of getting a sale are slim to none.

If the big retail company are currently selling blue shirts for 20 dollars at their stores. How much should I be selling my shirts to the retailers for? Should I be going by the keystone standard of selling each for 10 dollars since they are selling the shirts for 20?
I think big retailers are getting better margins than keystone, more like 2.5-3 times the wholesale. The retail power of department stores commands this.

But remember, if it normally costs you $5 to produce a shirt at your current volume, you can probably produce it for less at the volume Macy's would order. So let's say your cost at that volume is $3.50, you can wholesale at $7, allowing Macy's to sell at $20 which is almost 3 times the wholesale.

Is there any techniques in pricing this blue shirt perfectly where I make money and the retailer feels comfortable with my prices?
The true value of selling to a major retailer is the volume. So even at razor thin margins, you still make money. The lower your margins are, the greater the retailer's are, and the better the chances of them buying from you.
 

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Discussion Starter #4
Kimura, are you familiar pitching to big retailers? How do they typically go? Do you just go in and present your products or does it work differently? Can you or anyone please give me a breakdown on how a full meeting with a buyer went?

Thanks
 
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