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Entrepreneurship:  business discount question  |
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Lizabeth
True Blue Farmgirl
560 Posts
Washington
560 Posts |
 Posted - Feb 24 2009 : 10:06:19 PM
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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 |
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LoraFLeming
Farmgirl in Training
30 Posts
Lora
Onalaska
WI
USA
30 Posts |
Posted - Feb 25 2009 : 4:55:19 PM
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| 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 ... |
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Lizabeth
True Blue Farmgirl
560 Posts
Washington
560 Posts |
Posted - Feb 25 2009 : 8:10:45 PM
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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 |
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corporatefarmgirl
True Blue Farmgirl
389 Posts
Tamara
Pikeville
TN
USA
389 Posts |
Posted - Mar 20 2009 : 1:30:21 PM
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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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pmorello
True Blue Farmgirl
56 Posts
Patricia
Montgomery
NY
USA
56 Posts |
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mikesgirl
True Blue Farmgirl
3659 Posts
Sherri
Elma
WA
USA
3659 Posts |
Posted - Mar 27 2009 : 5:14:21 PM
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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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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Mar 27 2009 : 5:25:59 PM
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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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Edited by - therusticcottage on Mar 27 2009 5:27:04 PM |
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Lizabeth
True Blue Farmgirl
560 Posts
Washington
560 Posts |
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Entrepreneurship: business discount question |
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business discount question
