What's the right reselling price percentage?

Hey guys!

I want to start my own company. I thought it would be a great idea to make contact with other business owners of different retail store, flea market, reseller etc. and become their supplier for some products.

I guess you want to set a price to resell to these guys that is low enough to move your inventory fast and to get deals with them. I understand that my profit will be made on the volume, and not really on price per unit.

My question: what price should I aim for when I buy MY stuff from my supplier before reselling to them? Should I buy at max 10%, 15%, 20% of retail price? Obviously you want to buy as low as possible to have a profit margin after but I want to have your opinions on this.

I hope that was clear...

Thanks!

I'm a little unclear as to the plan.

You mention contacting retailers and selling to them, so you're talking about setting yourself up as a wholesaler?

What niche has wholesale prices at 10-20% of retail?

I would like to become a supplier for different retail store in my area. Therefore, I want to make business with manufacturer and resell to these retail store, a bit like a broker or facilitator let's say between the two.

So my question was to be able to easily sell to the retailers in my area, what is the price should I shoot for to be able to have high closing rate with these retail stores? 10% of their retail? 20%? 30%?

An example: Iphone5 cases can be sold in different china wholesale at 1$ a piece and retail around 5-10$. What should be my price to sell to the retailers stores as a broker / supplier?

Sorry for the 1st post, I have trouble making myself clear sometimes, I hope it's better now.

OK, you have a few primary issues to over come.

1. When dealing with a manufacturer direct, you will need to be prepared to buy in large volume.
2. When selling B2B (Business to Business), you will need to establish a volume sales platform for the customer to choose from
3. You can forget margins of 10,20% and so on, you will be selling in wholesale volume, so your margin will need to be low as your profit would be
made on turnover. That said, the best way to know where you will need to set your margin is to talk to the business's that you are wanting to
supply. Ask them what they are currently paying for X amount, once you know that number, then you will know where your margins will need to be
set.

Perfect, that is exactly what I was looking for. Now I have a better idea on how to approach business to supply.
Thanks a lot!

No problems

Definitely doing a viability study is the very first place to start with what you want to do, and the first thing to do in the study is to speak with retail business you would like to service. Talk about their requirements, their prices and speak about any possible new product genre's they might be interested in taking on.

This information gives you a foundation that you can then build on. After speaking to plenty, you'll have a good idea on where you need to be on price to get business, so then you know what price you will have to negotiate with manufacturers to enable you to establish your business.

My suggestion, get along to some trade shows if you possibly can. Great way to meet manufacturers and get leads on new products that are about to hit the market. If you are thinking of developing relationships with international suppliers such as in China for example, my advise would be to speak to sourcing agents who operate in that area.

Plenty for you to do, but start with the viability study. That will identify if there is much of an opportunity to start with and then you can base your next move off those results.

Cheers

Hi!

Pricing merchandise will be one of the most important decisions , since it directly affects our profit. The challenge is to find a reasonable profit margin and taking into account whether it would still be competitive in the selling arena. This article explains and discuss how to price your items fairly, do check it out.

Link hidden: Login to view



Good luck!