SALE AND RETURN - can some one please explain

[ribbonmad]

Hi

i have been offere sale or return in a local shop mt items range in value from 1.50 to 4.00

does the retailer take money out of that sale price or add her own price on top to get her profit as i dont see how she as gunna make off me ,if she as going to give me what i ask for ie 1.50 per item

please help

 

[Write on Message]

You should have a recommended retail price (the price shoppers will pay for your item) for whatever it is you are trying to sell to the shop owner (retailer) and also a trade price that you are prepared to sell to the retailer at. The difference between the two is the profit margin that the retailer will take.

If you don't have a recommended retail price then the retailer will charge whatever (s)he likes to achieve the desired profit margin.

Sale or return just means that the retailer will take some of your items and see if they sell. If they do, you'll get the agreed trade price per item multiplied by however many items the retailer sells. If they don't sell, you'll get the items back.

Hope that goes some way to answering your question.

Vicky

 

[ribbonmad]

so for example if i tell her that my rrp is 2.50 per item hat kind of profit will she take from that????

 

[Write on Message]

so for example if i tell her that my rrp is 2.50 per item hat kind of profit will she take from that????

That depends on how much you sell it to her for. If you sold it to her for £1.00 then she'd obviously make a much bigger profit than if you sold it to her for £2.00.

Does that make sense?

 

[Simon-M]

so for example if i tell her that my rrp is 2.50 per item hat kind of profit will she take from that????

If you tell her your RRP is 2.50 then you will be selling it to her for less than this. The RRP is what she will sell your item for.

So .. if you sell it to her for £2.00 and she sells it for £2.50 then her profit will be 50p.

If she does not sell anything ... well... you get it all back and she pays you nothing. That is the sale or return part of the deal.

Simon

 

[ribbonmad]

ye i understand more clearly now

i always thought i just took my stock to her and she would sell it at my prices and just take 10% of the sale price ie 15p! its working rather favorable for her lol no wonder she said yes!

thanks for your help

 

[Alice3537]

i always thought i just took my stock to her and she would sell it at my prices and just take 10% of the sale price ie 15p! its working rather favorable for her lol no wonder she said yes!

What profit margin are YOU working on? Maybe that's the part that needs a re-think!