How To Definite Wholesale Price

B2B: How to do I price a product to a wholesaler when I only know the retail price?

Broad Topic. I would try to answer it with an Indian Perspective.As answered by Matt - one needs to work backwards from the Retail Price and keep subtracting the Margin.Margin to be given to a retailer is largely defined by the competitive scenario and hence, there isn't a lot of room. Tweaking - A. One can lower the margin by providing additional credit period.B. Instead of a Product Margin - Extra sum assured for a definite volume sale.C. Other Incomes (like advertising) - Lower the product margin but pay extra for bill boards, placards, etc.Thus, you would have fixed the Retailers Margin - (Cloths/Lifestyle - 40-50%, FMCG - 10 - 15%). Lets move to the distributor/wholesalers -Distributors/Wholesalers typically look for how much volume they can generate and thus, scale is important. This is also because they need to release the inventory fast for which they would have already paid or has low credit period. Most wholesalers in India work at a lower Margin - (can vary from 3 - 10% for regular tradable goods).If you can't promise scale - you will end up giving giving high margins to him.A couple of strength of the wholesalers/distributor is what we should understand to negotiate the margin with them :1. Their Network of retailers.2. How long can they hold the inventory and extend credit to the retailers.3. Everyone is scared of competition and an opportunity loss - check from the market what is usually the rate commanded. Open discussions with various parties and you will get to know what is the market demanding. 4. How would the non-saleable (damages/rejects) material to be treated? It can pick another 1%.A juggling (different permutation and combinations) of the Retailer Margin + Wholesaler Margin + Upfront logistics cost will help you to maximize your profit.PS: Numbers quoted may vary product to product.. market to market.

What is the difference between Wholesale price, retail price and retail price?

The cost price:This is your own calculation of how much it cost you to actually produce your products.It includes your time x hourly rate, material and marketing costs, but also overheads such as studio rent, telephone and transport. Costing your product or service correctly is the foundation of how you will price your work.0You need to keep your cost price confidential, and do not share with others such as your retailers or competitors.Trade or wholesale price:This is the price you charge to trade buyers. This is your cost price plus a mark up or profit margin.As a guideline: this is normally around 2 x your cost price. But if your cost price is relatively high then it’s less. So for example if your cost price would be £150, then your trade/whole sale price would be around £250.This is the price your publish on your trade price list, and share with retailers or galleries. Do not share this list with the general public or with the media (they might accidentally publish the wrong price!)(Recommended) Retail price:This is the price that is displayed on your work or on a price list, and is the price that retailers or you charge to the general public (e.g. on your website or open studio event).This retail price is normally around 2.5 to 3 x the trade or whole sale price, depending on the mark up of the retailer.Please note that the retailer really needs this mark up to cover their own higher overheads such as the shop rent, taxes, business rates and staff. Do not undercut a retailer, as they will very quickly stop buying work from you! You can read here a blog post from a gallery owner about what happened when a jeweller undercut them.if you like my comment then hit on Revanta Officers Boulevard, Officers Boulevard Housing Scheme, Housing Project For Government Employees

How profitable is wholesale medicine agency in India? is it advisable to leave job and do business of wholesale medical agency of medicines?

Having an experience of 36 years since my grandfather i can better answer your question.It is a highly profitable business if u know what exactly to do.The medicine market is growing at a rate of more then 6% cagr so it a good place to do business.There are thousands of companies operating in India and all big cities. There are lakhs of brand name in operation as well.You get a 7-15 days site for payment to ur supplier and will collect it from ur retailers after 30 days.The gross margin is 10% but due to competition u have to pass atleast 3% to the retailer as cash discount for which payment will be after 30 days. In short that brings down ur gross margin to 7%.Unlike other companies u dont have a definite area to carter, u can sent from Kashmir to Kanyakumari. U dont enjoy monopoly of any company and there r as much as 20 wholesaler of the same company in ur neighbour.Now the competition. There are an average of more then 10 wholesaler of the same company offering the same product to the same retailers. So u need to reply why will the retailer buy it from you, for which he have to also manage an extra account. U need to then offer him extra discount, which will then effect ur net profits. Not advisable..!!The solution:— u need to offer him something other established wholesaler cannot provide. Each retailer has to work with more then 30-40 wholesaler to maintain all the brands operating in his area.U can provide him variety. U have to be his warehouse to store hundreds of companies and thousands of brands. That is u need to increase their dependency on you.Investment :— Average of 30-45 days of stocking and 30-45 days of credit. Thats means a sale of 1cr per month will require 2.5 cr of investment and 3–5L of net profits.A hustel of more then 5 yrs in mandatory and if u r able to pass the test then expect 25-40% ROI.This business is only advisable if u have an experience of any kind in this trade. Else i advice to watch it closely for a month and then take ur decision because alot can be at stake.Good Luck.

What is the difference between Wholesale and Dropship?

Hello.WholesaleBuying wholesale means you are buying in volume or bulk. It offers you products at a discounted price, the more you buy, the better the price. It's all about buying power, the more a wholesaler can sell a product, the more he can order. The more he can order, the better price they can secure from the manufacturer. The manufacturer can pass on better prices because they have the orders to make more product and in so doing, make more money, and the wheels of business turn round and round.Of course, that's the benefit of wholesale, but the downsides are mostly cash flow and the required storage space.DropshippingUsing a dropship resource means that there is no volume purchasing, in fact, you are buying one product at a time. As opposed to Wholesale, where products are purchased up front, a dropshipping model means that you aren't actually paying for the product until it's sold. So a definite benefit from a cash flow perspective and of course the stock holding perspective as well.The downside, price. Drop shipping can never deliver you the price that wholesale does.To know more about drop shipping - you can check "The Ultimate Guide To Start Building Your Dropshipping Business." You can also check and subscribe to the Importify YouTube channel, it's free.I hope this helps.