Wholesale

[brempel]

So Iknow this question has been talked about but I am new to this and i dont want to make any mistakes! I am going to be dealing with a small store and they are buying wholesale from me. How do you figure out what is a fair price. One example, if my candle will cost 3.50 to make what do i charge? Is ist best to charge by quantity? If she orders 10 is it better to charge on that or per peice? Any ideas would be much appreciated!

Bev

[EccoLights]

Wholesale = times 2 of your cost to make. Some say to multiply your cost by 2.35 and that is your wholesale. But you want to make sure that the retailer will be able to make a profit worth while also. Best of luck to you and your new adventure BTW, MINIMUM ORDER!! Can't stress that enough!! $100.00 minimum to begin and reorder at $50.00 xoxo

[Candybee]

I do mine a little different. I sell candles by the case but I don't set a minimum of cases to order. Also, the customer can mix and match scents in a case. Customers really like this feature of mixing scents in a case. That way they can feel like they are getting more variety without having to order more.

I charge 2 1/2 times the actual cost of the candle but have a price range I use to give price breaks for purchasing so many cases. My 1st price break is 5 or more cases, then at 10+ cases. I only do the 2 price breaks and set the first one (5 cases) within reasonable reach of even the smallest retailer.

I just started wholesaling this way in April and so far its working out better than I expected. I have this one new customer that ordered 1 case of mixed candles to try out and within a week ordered 3 more cases plus $100 in soap.

Edited June 1, 2010 by Candybee

[brudil18]

I'm still pretty small, but with my two wholesale accounts I have them buy by the case. It just works better when making batches that way. So technically I guess I do have a 1 case minimum. But they can mix and match as well.

Just my two cents.

[maxie114]

I also use $100 order minimum. It's not too high for a small business, but large enough to deter personal orders. I also set a minimum of 3 of each set since they are handmade and I make them as I go.

I set my price to market prices. A retail shop can sell there products for a higher price then at a craft show. So some of my products are even 3X if I think the market will take it. Good luck!

[brempel]

Thanks so much for all the info! My first wholesale is order is for 400 dollars and just in time for Grad and Fathers day. This customer bought soem product from me a few years ago and now ownes a Flower and Gift shop! I am really excited.