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Old 11th June 2008, 12:10 PM   #1
snapaholics
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Default Wholesale Vs. Distributor Pricing - HELP

Hello forum...this is my first post.

HEre is my dealio. I run a fairly large (seems large to me anyway) webshop for hair accessories. Snapaholics.com

I am just a mom doing this out of my house. I just buy em and resell em. Some stuff I make myself, like my body butter, or the dreadlock hairties, but mostly it's just straight reselling.

I got requests from other moms to sell my stuff in other countries, so I have a rep in Canada, Australia, and South Africa.I just discounted my retail price about 30 or 40 %. I also maintain their websites for them, so I had to factor in that.

I have a rep in Europe but she has her OWN website, and sells my stuff thru her company site but calls the items "snapaholics item xxx" and will be putting my logo on her page that carries the items.

She has recently had requests from salons in Europe to purchase the items from her to resell. So now we have her as an extra middle man. She has requested distributorship pricing vs the wholesale pricing I was giving her. How do I determine what this should be? What is standard? Is it standard to only do distributorship pricing for a minimum number of items? She has only asked for enough to sell to this one salon. About a dozen orders of each thing...maybe a variety of 6 things. I am very flexible as I just want the items to get well known, but I don't know how much more to take off her wholesale pricing.

Thanks for your help

Steph

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Old 14th July 2008, 06:18 AM   #2
janine08
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Distributorship price is how much SHE will going to sell it/Retail/per piece

Wholesale price is how much you price each item if she buy in bulk like in dozens, set, etc.

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Old 14th July 2008, 07:47 AM   #3
pete
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There is no formula for this. At least not at this point. You must look at your costs, including your time receiving, shelving, pulling stock, billing, packing, etc. Then you need to consider what you want to accept as a bottom line price and work from there.

You may have enough profit to have several distributor levels. You may find you don't have enough profit to give any further discounts.

You CAN say "sorry, you are getting the best price I have". Keep in mind, that she might alos give up some profit for the additional volume.

Or, you can set a "buy in" of $ xxxx that she must make to qualify.

Not knowing how your profits are, it's impossible to be more specific.
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