What % off RRP is suitable for Wholesale

Glowmark · 29-10-2009, 06:11 PM

We have just launched a product and are looking to sell wholesale and probably dropship it to start with.Product is patent protected and more of a niche market than mainstream. Without advertising it too much it is an ECO friendly boundary marker safety system.

Is there any set % that we should be looking to realistically reduce from the RRP price or are there too many other variables involved to give a set figure ?

Thanks

**canada** · 29-10-2009, 08:12 PM

Retailers will want 100% markup on the product,without knowing your business costs its hard to give a wholesale markup.

Scott

benguelan1uk · 29-10-2009, 09:46 PM

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

**jamestyrer** · 29-10-2009, 09:58 PM

Your selling a niche product in a niche market? - Why would you want to sell wholesale?

**greedyboy** · 29-10-2009, 10:02 PM

Quote:

Originally Posted by Glowmark

We have just launched a product and are looking to sell wholesale and probably dropship it to start with.Product is patent protected and more of a niche market than mainstream. Without advertising it too much it is an ECO friendly boundary marker safety system.

Is there any set % that we should be looking to realistically reduce from the RRP price or are there too many other variables involved to give a set figure ?

Thanks

Set the retail price at what the marker will accept and then work backwards.

So if it s a £100 product and it costs you £20 then £40 would be a good base price and then further discounts on quantity breaks.

It really is a case of suck it and see.

**jamestyrer** · 29-10-2009, 10:16 PM

Still dont get why you would have to move into wholesale for this type of product?

**greedyboy** · 29-10-2009, 10:18 PM

Quote:

Originally Posted by jamestyrer

Still dont get why you would have to move into wholesale for this type of product?

Volume and money I'd presume?

**Pete** · 29-10-2009, 10:19 PM

Using 100 as retail it would work like this

consumer 100

retailer / shop 50 to 60 As Canada said they expect to buy for 50 to sell for 100

If there is also a wholesaler selling to the retailer, he is going to want 20 to 30.

So best case for you

Consumer 100

Retailer 60

Wholesaler 40

Doubt you'll get that, but there it is.

More like

retailer 50

wholesaler 20

your cost 10 and you still double up.

Or you sell direct to retailers yourself.

**jamestyrer** · 29-10-2009, 10:22 PM

Quote:

Originally Posted by greedyboy

Volume and money I'd presume?

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

Acetech · 29-10-2009, 10:38 PM

Quote:

Originally Posted by jamestyrer

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

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.