Need a bit of help with this topic.
I have an automotive distributor that might be interested in carrying my product, vehicle mirror covers, who raised a couple of issues:
1 The salesman wanted to know if I had a two tier pricing structure in place (I don`t).
2 He questioned my ability to produce large quantities of my product.
Second question first: I have a manufacturer who is pricing out my sample coverfor various quantities. They can handle packaging too So, they`ll quote me a price at various numbers. Once I have that info in hand I can address the first question:
First question: How does pricing for distributors work? I read about a general 50/25/10 rule. My retail price is $15. Is there some sort of formula I can apply to give the distributor a price? A set automotive category formula?