wholesale on small $$ item - worth it??

[LauraInNY]

Hi ladies -

Some of you know I sell items in a vendors booth at a local country gift shop. I recently added candles and other home fragrance items I have been working on to my booth. One of which is mini cinnamon buns and gingerbread men bowl fillers that are scented and dipped in wax. Well when I priced them, I wasn't sure how well they would go over and priced them at a reasonable rate (2.99/dzn & 5.49/2 dzn) and they are selling like hotcakes. Well, I was approached today by one of the managers of the store (who also has the same sort of booth deal at another local country gift shop about 15 mins away). She wants to know if I would be interested in wholesaleing these to her to sell there. Well, my first inner reaction was ABSOLUTELY. Now I told here I would consider it and try to work something up for her and let her know.

Here's the thing---

1. She knows what I'm selling them for (and has told me I should raise my prices).

2. I only doubled them to sell to start cuz I wasn't sure how they would go over.

3. She wants a dzn pkgs of mini buns and a dzn pkgs of gingers (6 of each size). She also asked if I can do other items.

4. I'm torn cuz what I'm selling them for at the store is what I would sell to a wholesale client somewhere else. I could do 1.99/dzn and 3.49/2dzn. I'm not sure that she could get 3x what she's buying for though. Is that not my problem?

5. (This may be a dumb question, but...) I would still use my own packaging as all she is doing is selling my product and not reselling under her own packaging - correct? That would be something else entirely?

So I'd really like your opinions - do you think it is worth it for me to do?

[DoLLz]

Maybe you can just tell her that those are not the retail price. It is a new item and you are only testing the market. When your test is complete, the price on the items will be raised accordingly. So, you are unable to offer her those items for a lower price since the price you were selling them at IS wholesale cost. Restaurants do the same thing. Offer a new item for a lower price to see how well it goes before raising the prices and adding it to their menu.

[Glowlite]

I ran into the same problem once. I was selling some candles in a store in a lower income part of town. I was selling most of my stuff at my wholesale prices and when someone came and asked about wholesale I told her these are my whole prices. She was interested in tealights and votives. And I got the account anyway.

Tell her the reason you where selling them at that price. I'm sure she'll understand your need to test the market. Also tell her how well you've been selling them and that she could get the retail price for them no problem.

Just think of it this way. Are you gonna turn down a potential wholesale client. She may only want these few things now. Later she may want to buy your whole line.

[cindym]

If you are wholesaling than you have to charge a wholesale price, Iwould also consider raising the price where you are selling now. If they are going that well and increase is defintely warranted.