I'm selling a product that I charge at $16.80 per unit... (via my website)
and I think I have an interested buyer who owns a store with quite a good amount of market, all of its 5,000+ members should be interested in my product. I dont have that many units anyway, only about 125.
he will be interested in a wholesale pricing...
I dont know how to work it out at all...
its obviously more profitable for me to sell via my website (that is when I do sell them, its hard to get the traffic and attract the right market) I dont exactly have the funds to advertise, and if I post about the product on web forums, the webmasters gets mad cuz I'm doing free advertising. that I understand completely.
if I sell it wholesale to him, I may get less, but I definitely get some profit in, since I'm going to sell it to him in bulk.
but I really dont know how to work out a pricing. a fair one at that, and one that he will accept.
anyone have any suggestion? I'm not really good at this. Personally I rather sale it myself so I dont have to deal with another party, but this may be a good way to get a big load out at once.
I was something along the lines of:
$12 each for order of 10 sets = $120
$11 each for order of 20 sets = $220
$10 each for order of 30 sets = $300
$9 each for order of 40+ sets = $360
and I guess he can sell it for whatever amount he wishes. is that too cheap? or too expensive? I'm thinking he'll probably sell it at around $20. if thats the case there really isn't too big of a profit for him. so I'm not sure if he will want it.
any suggestions and comments would greatly be appreciated.
posted on December 20, 2002 05:40:06 AM new
I would do it, as Sam Walton said "I would rather make a little of a lot of money than a lot of a little money." What he meant by this is he would rather make 1% of a million dollars, than 90% of $100. I would expect with a qty of 5000 the person will expect to get at least a 30% discount from his selling price. He is probably looking more at 50%. Your pricing is probably not out of line, but I would start it a little higher so that you have some room to negotiate. If you start at $9.00 they will probably think you can do it for $7.00, and try to negotiate you down.
posted on December 20, 2002 09:01:45 AM new
It's hard when you don't know the market for the item.
As an example there are some sellers at my local flea market that must be World Class dumpster divers because the know where the best dumpsters in creation are located. They will sell sealed boxes of 35 sealed music CDs for only $5 to $10 a box. The problem is the CDs are a few years old and only rap or freestyle music. At way less than 50 cents each it's hard to walk away from deals like that. The market for these CDs is the tough part. The items won't sell on Half.com even at $1.50 each and they won't sell on ebay for even $1.50 . It's not that the CDs are lemons it is that both places are full of these items and competition has driven the price down to that level.
When a seller emails and wants quantiy I try my best to unload as many of the CDS as I can at a decent profit. These types of sellers are sometimes few and far between and music tastes change as fast as clothing fashions so it is often best to not let many insects leave the spider web. It's ironic the Japanese and European sellers are the best ones for these deals with the high mailing costs they have to endure.
posted on December 20, 2002 11:44:19 AM new
If you can prove to your manufacturer that you can move their product(s), that gives you room to negotiate a better price later. In return, you can pass some of those savings on to your quantity buyers. If you sell it one at a time, you might make more overall, but consider your time with packing, customer service, etc. And the market may change where you don't get the prices you want later...
[ edited by sun818 on Dec 20, 2002 11:46 AM ]
