Need help pricing my products for wholesale?

Question

Right my problem is I have sole UK distribution rights for a range of products from abroad. I'm confused about how to price the items for wholesale here in the UK. If for example I pay £1.50 for an item before shipping, taxes, customs etc do I just add what I want my profit to be.. and then charge the buyer shipping/taxes/custom fees separately in the invoice?

I've tried adding the expenses on top of the price per unit but it brings it up too high. I want to approach major retail stores, need to get my prices and terms of business right before doing so. Need help in all these areas please!

Products are 100% Egyptian Cotton underwear coming direct from Egypt. Worried after adding up all the expenses it'll make my prices appear too high.. despite making little profit on each item.

Any help at all on this topic will be very much appreciated!

what Egyptian cotton from India/China? Surely it would cost them to get it over there first, should be cheaper coming direct?

Answer 1

Classic distribution system is the middle man (you) imports the goods by the ship load (or multiple container load) and stores them in a warehouse - so your prices are UK ex-warehouse, and (typically) you would sell in Qty 'per pallet'

These days, a lot of products are sold on a 'just in time' basis - so you could offer prices ex-works Egypt 'per container load' (i.e. your Customer has to arrange transport, pay import duties, insurance etc etc)

NB. I seem to recall that EU imposed Quota's on import of some clothing ?

PS I can't believe you did a deal for exclusive rights without even checking prices ... from what I hear similar goods cost 50p from India/China ..

Answer 2

There are 2 general rules to keep in mind, and they're very simple.

(1) You need to sell products for 2 to 3 times what you paid for them. 3 times is obviously better than 2.

(2) You can't price yourself out of the market.

So, do some research and find out what similar items sell for in your market niche. If that price breaks rule #1, you obviously won't be able to do it.

Answer 3

confident, a tax identity or resale certificates in maximum states is actual. no longer all states require a company license. you will possibly be able to additionally elect to confirm a DBA or another form of company entity including an LLC or business company, as many wholesalers and vendors would possibly no longer take you heavily as a man or woman. We require a tax identity form from our customers.

Answer 4

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