Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Pricing - thinking of contacting a distributor

Options
  • 12-02-2014 1:29pm
    #1
    Spice Girl
    Registered Users Posts: 29 ✭


    Can anyone give me a steer on this.
    I have some paper products that I think would do well in retail.
    If my cost is €0.35 each, what would a retailer price them at? I'm thinking €.35 x 1.6 = €.56 for my sale price. Then they would retail at €1.37 (sale price x 2 + VAT). Does this sound right?
    If I approached a distributor (it's a paper product which would do well in craft shops) what price would I be expected to sell to them at?


Comments

  • Options
    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    Retailers would add that sort of mark up on them (I am a retailer who just happens to stock a few crafty things!). I guess the distributor price is going to be something you are going to have to negotiate its probably going to depend on volume. If you want to PM me what it is I might be able to give you an idea of how that pricing compares.


  • Options
    #3
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    A distributor is going to want between 33 and 40% of the price ex VAT he is selling at to retailers.


  • Options
    #4
    Spice Girl
    Registered Users Posts: 29 ✭Spice Girl


    33 to 40% isn't what I was expecting. Would you mostly use a distributor if you weren't physically close to a market - e.g. US
    The distributor I was thinking of approaching is based in the UK but I can just contact their customers directly.


  • Options
    #5
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    UK, Ireland wherever, ......that is minimum margin and to be honest they would likely seek to take you out of the loop altogether unless you are a primary producer. I think you posted before, but I may be mistaken, that you are buying in the products from India or Sri Lanka or some such place. If this is the case you are seen as an unnecessary extra margin in the chain, and distribution will look to take you out.


  • Options
    #6
    Spice Girl
    Registered Users Posts: 29 ✭Spice Girl


    I am buying in papers from India and getting them cut in to shapes, packaging and branding them.
    Maybe it's more wholesale than distributor I'm thinking of - would the margin be hugely different?
    This is the type of company I thought of approaching and they seem to have lots of brands on their site.
    http://creative-expressions.uk.com/productcatalogue/index.php?pbid=TYPE&lev=1
    The thought of cutting me out had occurred but I'm hoping that the range I have makes me a specialist.


  • Advertisement
  • Options
    #7
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    `Distributor and wholesaler are essentially the same thing and thus the margin rate applies. the company abouve also sell retail/online and have a wholesale/trade business. They have 2 margins when the sell retail!!!

    On the positive side for you, distributors do not want to do anything with the product other than take it in/sell it/ship it!! If you are adding value and formatting the products, you are much safer. The market is also probably quite small but with a vast number of different products handled, it would not be worth it to them to bother trying to take you out!! A big volme, different story!!

    Hope this helps

    Peter


Advertisement