Distributer pricing. Just checking

[Peanut Butter Man]

Hello

A distributor wants me to give them case prices on my goods

They say they want to give customers 30-35% with the distributor have 25%

So is the calculation on this My Full price - 30-35% - 25% gives the distributor case price

Thanks

 

[candyman]

Sell for what's right for your business.
The distributors and retailers margin is not your concern.

 

[JamieM]

Hello

A distributor wants me to give them case prices on my goods

They say they want to give customers 30-35% with the distributor have 25%

So is the calculation on this My Full price - 30-35% - 25% gives the distributor case price

Thanks

Yes if they are talking profit margin. Is peanut butter VAT rateable? If so then you should calculate it on your full price excluding VAT.

Sell for what's right for your business.
The distributors and retailers margin is not your concern.

I agree he needs to ensure pricing is right for his business but personally I will always consider the margin of distributors and retailers. Hopefully it will be an ongoing relationship so you have to try and make sure the margins work for everyone.

 

[joannie92]

I agree with Candyman - don't undercut yourself, do a price that's right for you. I suppose if they can generate a lot of business for you then take a slightly lower margin to beat any competition but always make sure it will cover your costs and be profitable for you.

 

[Peanut Butter Man]

Thanks all..

 

[beasty]

Your distributors and retailers prices ARE 100% your concern

Your product needs to be competitive and your model needs to allow both the distributor and retailer to make a profit that is worth the effort, if it cannot do that then the model is wrong.

You should listen to what they are asking for as if you cannot get close, then your distribution method might not be viable.