Creating a wholesale price list?

[tenkatonic]

Greetings all.

I would be extremely grateful If anyone can offer advice on the following . I have been selling my products online now for some time with good success. Now I am getting inquiries from retailers that want to stock my products (3, High-end electronic products). I am planning to push my products into the retail stores when I have a handle one everything.

What I am really struggling with, is how to come up with a price list. What prices to include on it? Is VAT calculated into the RRP?

I managed to find a price list from a company that sells similar products to mine. They list 4 boxes:

QUANTITY - PRICE - RRP - MARK UP

Are these the only things needed on a price list?

I am pulling my hair out over this at the moment and I really do need to get a move on with it. Any advice is really, really appreciated.

 

[Esk247]

Just be sure that you maintain your own margins. A lot of people get a bit carried away when someone says i want 500 of those at £2.50 per unit, sounds great, until you realise the costs leave you with just 10p net profit per unit at the end of the deal.

You need to work the other way round.

Cost of Manufacture, Wholesaler Price, Retailer Price, RRP

e.g. it costs £1.00 to manufacture per unit and have it in my stock room, I sell to other wholesalers at £1.50 per unit, i sell to retailers at £2.00 per unit i sell RRP in my shop at £4.00 per unit. (obviously different depending on your pricing).

Are you VAT registered? A lot of big companies don't deal with the whole VAT per unit until they invoice for the total amount. Our suppliers don't, they just give me a price without VAT and then just put it on the bottom of the invoice when we pay.

 

[Spearmint]

Greetings all.

I would be extremely grateful If anyone can offer advice on the following . I have been selling my products online now for some time with good success. Now I am getting inquiries from retailers that want to stock my products (3, High-end electronic products). I am planning to push my products into the retail stores when I have a handle one everything.

What I am really struggling with, is how to come up with a price list. What prices to include on it? Is VAT calculated into the RRP?

I managed to find a price list from a company that sells similar products to mine. They list 4 boxes:

QUANTITY - PRICE - RRP - MARK UP

Are these the only things needed on a price list?

I am pulling my hair out over this at the moment and I really do need to get a move on with it. Any advice is really, really appreciated.

I've tried going through this before as well, but it left me wondering whether selling direct to retailers was the right thing to do!

I'd be interested to know if you are selling a unique product that the retailers can't get anywhere else, as that could make a difference.

However, there's another scenario you need to consider as well! You could also be approached by wholesalers and they may ask you for a price and they want it cheaper than the retailers!

From my research into this (wholesalers & retailers), it seems that if you want to sell it via the wholesaler/retailer route the multiplying factor is 8 on top of the cost price to get to the RRP.

So the breakdown for an item that costs a £1 to produce the suggested rates are as follows:-

Cost price to a wholesaler - £2
Cost price to a retailer £4
RRP - £8
Your profit £1

I tried using the 8 X factor with my product, but I didn't like the result!

In my case the factor of 8 made the RRP of my product too expensive in comparison to the competition and to Joe Public, so I could only deal with wholesalers/retailers if they would be prepared to accept a return less than 100%

So, just in case you're approached by wholesalers later, the price I'd quote to the retailers is half the RRP, provided that it suits you. You could start negotiations at a higher price, but I wouldn't drop it below 50% of the RRP.

The other thing that you need to bear in mind, is the actual price that the retailers will sell your product for, and what effect that could have on your direct sales.

Feel free to pm me if you want to discuss this further.

Best of luck

 

[fayecsmith]

If you are being approached by retailers to stock your products that is great - this means they already like your products and know your retail price.

Esk247 is right about knowing your costs (I would hope you know them for your business currently). If you don't know them then work them out now!

As an ex buyer I would expect to see a quote/price list with the following on:
Item name + any reference number
Minimum Order Quantity (MOQ) = 25,50,100,250,500,1000....
Piece Price without VAT.
RRP.
Total per quantity (MOQ*price).
Any other costs = transport
Then your terms or direction to your terms at the bottom and something that says prices exclude VAT, VAT added upon invoice at rate of 20%...

I didn't buy goods for resale but I hope this helps.
From a buyers perspective do it on a spreadsheet to make it clear and easy to understand, use branding (such as a logo at the top and certain colours) so I remember it's you and send it to the buyers on a PDF attached in an email.

Remember set the prices you are comfortable with but be prepared the buyers may negotiate so know what your limit is before you give away too much margin.

Faye

 

[dustinscott]

yeah as per my knowledge,

QUANTITY
PRICE
RRP
MARK UP

Are the only things needed on a price list.