The Wholesale Forums

[ballymoremonty]

Originally Posted by Acetech

I agree, niche isn't really niche if you're giving everyone a chance to sell it. If it's salable, then why don't you just sell it yourself and rather than selling wholesale just maybe get some (selected) resellers, otherwise ebay, etc. would end up flooded with what wouldn't be a niche product anymore.

Be a bit handier though if he could sell it by the lorry load out of a warehouse.

[Acetech]

Originally Posted by ballymoremonty

Be a bit handier though if he could sell it by the lorry load out of a warehouse.

Oh yeah, I understand that too, suppose it depends on what you're outlook and ideals are on the product, many people would be glad to start a new trend so to speak, also the obvious benefit of a fast turnover to move on to the next product/s if there's more up your sleeve, whatever you do with it I wish you all the best, but for volume sales it also depends on the sector your product is in as some can generate higher profits than others, whereas some products can sell for 100%+ markup others may struggle to reach 20%, so best bet would probably be to just look at what you find as acceptable for your own profit and still give a seller a chance to make some of their own plus any middlemen in between.

[benguelan1uk]

Pete I totally agree with your price stucture scenario, very accurate i my opinion

[benguelan1uk]

Someone asked why wholesale it? Well, because the Industry breaks down to these three categories....Consumer, Retailers and wholesalers and there is no many glomorate corporations that design, manufacture,marketing and sell because it is just not productive 8 out of 10........A good wholesaler with good links in the market can bring awareness to your product and sell figures that you only dreamed off....It is like you want to build a house and want to manufacture the bricks, windowns.........and put a little ad in your local paper "To Sell"

[greedyboy]

Originally Posted by jamestyrer

Yeah but a niche product? in a niche market?? Come on, volume isnt a problem with this model!

Because a wholesaler has an established route to market and would be in a position to instantly sell in larger volumes at a much lower unit cost.

The same reason Sony sells through distribution channels. They have the ability and money to sell direct, but they choose to put their products through distribution for the very same reason.

Niche or no Niche the basics are the same. Only the demand may differ.

[canada]

Originally Posted by benguelan1uk

Canada where did you get that figure 100% markup from?

Based on retail experience,to set your RRP(recommended retail price) you need to know your cost per unit which includes your cost of manufacturing and business operating expenses.

Scott

[benguelan1uk]

Originally Posted by greedyboy

Because a wholesaler has an established route to market and would be in a position to instantly sell in larger volumes at a much lower unit cost.

The same reason Sony sells through distribution channels. They have the ability and money to sell direct, but they choose to put their products through distribution for the very same reason.

Niche or no Niche the basics are the same. Only the demand may differ.

Greedboy you could not have out it in a better words, totally agree but unfortunate some people don`t get it and they quite happy to be on their own isolated Island, Mr do it alone, I do not need a team.........

[BondyUK]

I think there has been a misunderstanding about the wholesale issue.

I believe the point being made was that a niche product, in a niche market, would not typically be stocked by a wholesaler. Obviously there may be exceptions to the rule, but generally speaking retailers of this niche market would be working very closely with their suppliers, majority of the time being the actual 'brand owner' or manufacturer, rather than simply purchasing from a generalised wholesaler.

Look at it from this point of view...
There may be many retailers for a niche product, which you can provide directly, making an additional 40% markup. However, to a wholesaler the overall sales from a niche product would be very small in comparison for their other lines. Therefore making it a waste of time, effort and money (as well as storage space) to stock all the niche products out there - which leaves the only other option of trying to pick specific ones that they may find a demand for, coming back to "time, effort, money". Especially if the demand isnt what they antisipated. Since they already have to deal with this for mainstream products too, most of the time they just arent interested.

Since most retailers dont expect to be able to go to their typical wholesaler, why bother using a middle-man anyway when you can make an extra 40%?!
If it becomes popular to the point that warrants going down the wholesaler 'middle-man' route, it is no longer a niche product and hit the mainstream market.
As with the Sony example (which is not niche) it makes more sense, provide far greater sales and brand/product awareness using wholesalers/distributors.


I think the 60%/40% is correct and especially important if you want any chance of getting it stocked in larger chain stores, they wont entertain anything less than 60% unless its a high demand product (which means its not actually niche) and can only come from you (due to your patent).
You may be able to reduce the 40% although if it is niche & they decide to stock it, it may well be on the condition of a 50% or 60% margin. Likewise, smaller retailers may accept a lower margin like 40%

[Glowmark]

Thanks to all for taking the time to reply.

Started the thread and then got a call to go for a beer,by the time i got home was in no state to be focusing on a keyboard !!

Taken onboard the points raised and without seeing or understanding the product can see it is very difficult to offer any advice.

Did put a sample pack on Ebay,which did not sell.

May have to pay to become an advertiser,so i can get your opinions on it and hopefully move forward from there.

[greedyboy]

I hate this word 'niche' i think it's a load of b***ocks.