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Post by Michele on Apr 16, 2014 21:21:03 GMT -6
I have been contacted by someone about purchasing 20 necklaces for a shop out of state. What is a reasonable discount? She said she will probably be ordering several times a year.
The necklaces are $28.
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Post by lotty64 on Apr 17, 2014 1:32:54 GMT -6
Firstly well done on the order that is a lot of necklaces. As for a discount I am not sure, maybe start off with a small discount and if she does come back again perhaps you could negotiate a loyalty reward. Not being a seller myself I don't know if this would work or not.
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Post by caeterle on Apr 17, 2014 2:34:30 GMT -6
The point is not how much or how often she will order, but that the amount you get covers everything you put into it (time, materials, etc.) AND still make a profit.
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Post by Michele on Apr 17, 2014 11:55:15 GMT -6
Thank you ladies.
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Post by rocknwow on Apr 17, 2014 16:15:23 GMT -6
Wholesale usually means %50 off, it's called Keystone.
Right now the majority of my business is Keystone. I have a minimum $500 order, $250 net and then a minimum $100net order after that. Obviously you can set any per-centage and minimums you want.
Wholesaling is a double edged sword. The major drawback is that you make 1/2 the money for twice the work, in my case.
The major benefit is that you make a lot more on the retail side then you would without wholesaling. If you do keystone then you have to set your retail prices with that in mind. Materials 3x + labor x %20 means at a %50 discount I still make 1 2/3x my materials and %60 of my labor. That's actually pretty good and I find that more then acceptable.
If my formula raises my retail prices too high. I have many options; lower the price and not offer that for wholesale...very rare. I can find better deals on materials and keep practicing until I can produce them fast enough to get my labor rate down...foldforming bangles is the perfect example of this.
The most likely is that I abandon that design. I have a minimum I want to make; if that's not possible then I move on to something else.
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