Pricing Retail

[ladysj]

Okay I'm really having a duh moment on this and it seems that I have been for some time now.

Here is the product.

My Cost to make: $2.93

2x that for my wholesale: $6.00 just rounding to even #.

Retail at 4 x cost: $12.00

What is really throwing me off and confusing me is on the wholesale part. I thought most people do half retail for wholesale prices but I guess I'm mistaken.

If I want to start offering wholesale then the best way to do it would be doing a 2x cost price I'm assuming.

I don't know why this is confusing me so bad. ROFLMAO Is that what most of you do 2 x cost for wholesale?

If so when offering wholesale on your website do you just put a total wholesale price for each product? I was trying to do a percentage but it's not working exactly the way I want it to.

LMAO now that I look at it on here 50% of the retail would be $6.00 for some reason it just doesn't seem to be working out right on the cost analysis.

Any help/suggestions?

[CraftyChris]

Customers have minimums they have to meet when they buy wholesale, I use case minimums. How much longer does it take you to pour 4 jars, verses 12 jars? With the right equipment, maybe 5 minutes?

Keep this in mind when your pricing wholesale, maybe work on an 70% markup instead, with case minimums, it will keep you competitive with other candle wholesalers.

So if your cost is $2.93 (I would roud this up to account for loss, such as spilt wax, a label that needs to be rerun---)

So $3.25--I would wholesale at about $5.50, and retail at $9.99

A $5.50 wholesale will allow the retailer to retail at their end for $9.99.

It depends on how you sell as well. Tis method of pricing will allow volume selling. You may not make as much per candle, but you may sell 300 verses 100, so it the big picture of things..... I prefer volume selling personally. I want my accounts to move the product faster. It gives them confidence in my company, and they buy more, and we both win.

I have a case minimum and a $200 order minimum for wholesale BTW.

Hope that helps you.

[sockmonkey]

Are you selling wholesale AND retail?

It seems like you're kind of looking at it backwards. Wholesale prices are established first. Usually, most wholesalers do charge twice the cost of materials, so you've got that figured out, and then whatever the retailers pay you for the product, they typically double that price to the consumer.

I always advise people to add a little padding to their cost (provided they are not paying retail prices for supplies, making them non-competitive to start with). By adding a little extra, it gives you some wiggle room if the cost of supplies suddenly go up or you want to offer a sale.

So maybe you will charge $7 wholesale instead of $6. Your client may then charge their customers $14, $19, or $25--whatever they think their market will bear for the product.

Also, there is no law that dictates that your wholesale prices must only be twice your cost. Some wholesalers only discount 40%, and others not that much--it all depends on how much profit you need to make on your products, and that something only you can determine.