I run an online business hand-silkscreening my designs onto garments. I have someone interested in stocking them in their shop, but they’re asking me what my Wholesale Pricing is.. I’ve never done this before, so I have no idea how to work out something fair.
I buy the blank dresses for around $10 each with shipping. This doesn’t include my time, ink or screen costs. I then print them and resell them for $22. Which means I make very little profit..
What sort of discount should I offer this buyer? She doesn’t want a lot of items, but I would really like to pursue this as it may lead to future sales.
Thanks!
Char,
Your wholesale price has to be your total cost plus an acceptable profit. If you aren’t making money, then it’s a hobby, not a business.
If the current price is $22, and you are making little profit, then you’re already selling less than what your wholesale price should be, in my opinion.
The garment business tends to run 100% markup at retail. Shops sell half of their inventory at full price to break even, and then discount the rest… every dollar made after they’ve sold half is pure profit. This is why end of season sales at clothing stores can offer such large discounts.
You need to:
1) add up ALL of your costs (including your time) to produce the dresses
2) add a reasonable profit (10-15%) – that’s your wholesale price
3) add another 15-25% – that’s your retail price
Hope this helps, and good luck!
Certified management consultant, trainer, and executive coach
One response so far
