I design crafts & Jewlery.... I have a store interested in buying some for thier display.... I can sell 'X' for $20.00 on my own; Would a 50% discount off that be(selling wholesale to the store) too much? I would cover my expenses plus a very small profit.
Thanks for any help.
2006-12-28 11:25:48 · 2 answers · asked by isis 4 in Business & Finance ➔ Other - Business & Finance
Wholesale is 50% off retail. In order for you to sell your work out- right to the store, you need to allow this discount. Another option would be to offer consignment terms to them at a 60/40 break (60% to you). There are certainly risks for the artist with consigning, however (like getting paid, loss, theft, damage).
As a former gallery owner, I recommend that you consider raising your retail if wholesale pricing doesn't allow enough profit. Then, never undercut your retailer by selling your work on your own at less than your suggested retail. Having a store sell your work can offer great exposure and higher volume, but you have to treat it as a business.
2006-12-28 11:43:02 · answer #1 · answered by kimhoutx 1 · 1⤊ 0⤋
It depends on what you want to accomplish. If your relationship with the merchandiser can expand your business in meaningful ways, then this is an acceptable discount. But if this is the only product you expect to sell through them, it's a lot of trouble for minimal profit. There's real danger that if they like it, you will be tying up lots of capital supplying them with products that you can't profit from.
2006-12-28 19:50:09 · answer #2 · answered by anywherebuttexas 6 · 1⤊ 0⤋