Discount to retailer

[Webby]

I'm launching a food product in March 2010 and currently building a network of distributers of it.

As I am new to the world of business I'd like advice on retailers discounts and what I should expect.

The retail distributers in question are based online and would deliver the product, there are no special storage requirements.

Do online retailers expect a lower discount than existing high-street stores?

Also what kind of quantities should I be looking at for each discount band?

I've heard such stories of major high street food stores wanting 60% discount - but these obviously are high quantity.

[Business Spy]

Hi

Could you offer another incentive for them to distibute (for example, providing the means for their customers to have a free promotion with your goods) as a bartering tool to reduce the discount they are seeking? (As you are giving them an added "pull").

[Chris Ashdown]

The distributer has to make a living and the retailer also, few companies would be happy with 30% markup as it would be hard to make a profit for slow moving items

Ask a farmer what he sells his spuds at to the supermarkets (one step to customer) or look at the price of eggs on a market and in the larger shops

At the other end of the market go to a cash and carry and source some products that your small local independant would buy for onward selling to the public