How to calculate trade prices ?? :(

[mrvillicus]

Hi everyone,

Ive recently launched my business selling specialist imported aquarium wood, I have some shops interested in selling my product but as this is all new to me I havent a clue regarding how trade prices are worked out? in my case, as my product is a niche and hard to source, I have the luxury of creating my own retail pricing, would this rule still apply to trade? basically guess the price?

Many thanks, Ben

 

[japancool]

Ultimately, what are other people charging and how much money do you want to make?

A trade price is like any other price.

 

[MattCollins]

Hi Ben,

In case it helps, a rough rule of thumb retailers sometimes use is to take the price from their suppliers, double it, then add VAT. For example, something they buy from you for £10, they'll sell to their customers for £24.

If you have an idea what your products will sell for in a shop, you can figure out what the retailer might pay for it.

This is just a rule of thumb, though. Markups do vary by sector, etc., so it's worth asking around and perhaps seeing what sort of markups similar products are getting.

Hope this helps.

Matt

 

[Billmccallum]

research the market to see if you can compete http://www.decorativebranches.co.uk/index.php?main_page=product_info&cPath=21_1&products_id=114