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I just opened earthluscious a couple weeks ago, and have had a request for a  wholesale price list. My goal is to sell my products to spas and specialty stores so I need to know this. What is the appropriate % mark down to clients?  Thank you in advance for your replies!

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There are several schools of thought on this. At the HSMG Conference one speaker recommended doubling the cost. Another speaker recommended more than double the cost if the market will bear that. I also had read elsewhere 40%. Others have recommended 50% of the retail cost. Depending on the location, this can vary.
Thank you! After posting this, I saw the WHOLESALING discussion and they also stated that wholesale is 50% of retail.
Also know the difference between taking 50% off a retail price and adding 50% to a wholesale price.
For example:
a wholesale product for $20 retails for $30
taking 50% off $30 = minus $15

SO start price lists with the Wholesale base and do a MSRP - rather than taking a blanket 50% off your retail numbers.
Hope that is clear.
Sorry, I don't understand. Use my product for example. If I sell my moisturizer for $40 on my website retail, how much do I sell it to a buyer at wholesale?
:) this always takes a moment with a calculator
The wholesale price could be $26.
The buyer can mark this up 50% which equals $39

how is that?? :)
one of my wholesale clients marks my goods up x2.5 so an item I sell them for 3 dollars retails for $7.50. most retail stores will do a 100% markup (keystone) some do a higher one- so if you wanted to keep the price level with your website I would wholesale it for 20. I have worked in both retail & wholesale for 20 years and I have yet to meet a retailer who does a smaller markup than double wholesale (unless you are on consignment)
the way I learned wholesale pricing was costx2 + whatever traffic will bear. that way you get your initial investment back (cost) plus more to make another, plus some room for overhead (rent, utilities,your pay)
does that help any? or just muddle the issue??/
Basically what i'm hearing is to sell it wholesale for half of what I charge on my website; 50%, right? And do you usually have them sign a contract that they won't sell it for less (taking sells away from you)? Other than specials and so forth. What I mean is; they can't retail it for less than I do, right? Thanks for your responses! I learn so much from you guys!
You should take the time to figure the cost to produce including labor.
Then multiply by 2 for wholesale and by 3 for retail.
Pricing and how you arrive at it is not as simple as adding labor, costs of ingredients, and multiplying it by a certain number. Going too low you may possibly sell yourself short of what really your products could command. Too high and there won't be any interest. It is a fine line and perhaps testing the waters will be needed. Don't rush to pricing, think it through and do your homework first.

Also be careful of setting too low or too high because then you create a credibility issue for customers and may lose trust or you'll get those that will always wait for that sale to come along. I rarely put items on sale for this very reason since it could be perceived as a desperation to gain sales, but then those customers are gone once the prices return to normal. Sales do not create loyalty in my opinion but attract the bargain basement shopper always looking for the next score on products where they save huge. They flit from website to website on the hunt since every product to them is the same as the next and it is all about price only! I have a sale maybe once a year and it is limited and most times instead of a direct sale I offer a promo with purchase instead.

Key points to be aware of: Take a look at your target market...what is your niche? What is your demographic?

Compare your products with others that are similar and others that have some unique qualities. What price points did they set? How do yours fit into the competitive market?

Why are others more or less money than their competitors? Why do some command a higher price when all they are is basic ingredients of similar products sold? Compare generics with name brands like at the supermarket. Why can a generic be purchased for so much less?

Of course when pricing your products you definitely want to cover your costs and then some, but once you have the other things figured out above, this is really the deciding factor as to where to set your prices.

For instance my customer demographic is geared toward older mature women who expect a certain look, feel and reliability based on a promise of delivering what they expect for their money and my mineral makeup formulas are uniquely different. These are ladies with disposable income and don't mind paying higher prices for the products and education I provide since they are result oriented.

Wholesale pricing becomes the natural derivative of your retail price point rather than the other way around. I offer mine at 40% below retail....plus I also provide full color brochures for point of sale and higher end packaging.

Take your time Deanna and you'll be fine with doing what is best for your products, customers and your business.

Good luck!
Thank you!
Hi Katherine,

I have been agonizing over where to set my retail prices and I am thankful for your post! It is nice to see someone who has set their prices based upon many factors rather than just lopping off the standard 50%. I am curious, how do wholesalers respond to your wholesale prices? I am thinking it may actually work to your advantage because the people who want to carry your products really believe in them so they are willing to pay a little higher price for them. Do you ever get negative reactions?

I was contacted yesterday by someone interested in carrying my products and she said that she never buys from companies whose wholesale prices are higher than 50% retail. It was actually kind of a turn-off - and I'm not sure I would want to work with her anyway. But, then again, wholesale is really new to me and I'm learning how to do it! I just don't want to be persuaded to set my prices too low because of one person. This is the hardest business decision I have had to make so far.

Best of luck to you!

Hi Deanna,

Generally speaking wholesale should be about half of what your retail price is.



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