| T O P I C R E V I E W |
| Lizabeth |
Posted - Feb 24 2009 : 10:06:19 PM
I need a second brain on this question, please. or two or three!
I have a customer interested in purchasing 100 gift boxed candles.
I have worked out the retail value of said candle with box by doubling my materials cost and adding my pay.
So my question is, with such a large order is a 10% discount from the total a good discount? to earn repeat orders and referrals?
thanks for helping with this!
Heather |
| 7 L A T E S T R E P L I E S (Newest First) |
| Lizabeth |
Posted - Mar 27 2009 : 7:02:08 PM
Thank you so much for helping me work through this ladies. I value each of your contributions!
http://www.handcraftsbyheather.com
http://handcraftsbyheather.com/blog/ |
| therusticcottage |
Posted - Mar 27 2009 : 5:25:59 PM
I take my materials cost, add 40%, and then add my labor to that. If she is a retail customer then a 10% discount is plenty. If she's wholesale then a 40 to 50% discount would be in line with what most people get. I do my wholesale at 40 to 50% of my retail price. It depends on how much they order. I would always set a minimum dollar amount or quantity amount for wholesale customers too. My starting point is 12 items.
Handmade Soap & Lotion Bars http://www.therusticcottagebath.com
The Rustic Cottage Blog http://therusticcottage.blogspot.com
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| mikesgirl |
Posted - Mar 27 2009 : 5:14:21 PM
I triple the cost of my materials - 1/3 to pay for materials, 1/3 for the cost of selling (marketing, rent, gas, etc.) and 1/3 for me. Sometimes the cost of selling is more, sometimes less but it ususaly works out to be about a third overall. When I wholesale, I just make the price retail minus 33%, as that is my cost of selling. I just set up a wholesale account today that will pay 70% off retail, so that's an extra 3% for me or materials. It works out pretty well most of the time! I have sold wholesale at 40% off retail, but it was a large order and worth it.
Farmgirl Sister #98
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| pmorello |
Posted - Mar 27 2009 : 2:40:55 PM
I have found that wholesale buyers do indeed expect 40-50% discount off retail price. It was a whole new world for me to discover! So definitely adjust your retail price.
Pat
Pat
www.patriciarose-apotpourri.com
www.patriciarose-apotpourriof.blogspot.com |
| corporatefarmgirl |
Posted - Mar 20 2009 : 1:30:21 PM
I will be honest - you need to mark up your retail price more. IF you should ever sale to someone interested in reselling ( as in retail or when people are looking to buy in quanities, they usually expect a 50% discount. So my wholesale cost is actually double my material and labor cost. My retail cost is double that. So if a item cost me $2.00 to make I retail it for $6.00 and wholesale it for $4.00. I have quite a few items in different retail stores.
Hope this helps
live well,
Tamara
www.thegoodearthfarm.com
"We do not inherit the earth from our ancestors, we borrow it from our children"
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| Lizabeth |
Posted - Feb 25 2009 : 8:10:45 PM
Okay! thanks for your input. I might start with a 5% discount then. I haven't yet had such a large order so I wasn't sure where to start. I think five is a good number, fair, but still indicates I value my product and my time :)
http://www.handcraftsbyheather.com |
| LoraFLeming |
Posted - Feb 25 2009 : 4:55:19 PM
A 10% discount is more than fair! I work at a grocery store and when people buy cases of something they only give a 2% discount! Just make sure you're making enough profit, because otherwise when they come back for 500 or 1,000 you'll be working yourself to death for nothing ... it's hard to raise the price later ... |
