Forums: Discussions for entrepreneurs and small business.

I am looking for a little more info on wholesale contracts. I have been approached about offering my product on a wholesale basis to a few retail shops. I have a few questions in this regard, and would appreciate any input or experience others have had in this area.

A few of my questions-

How do you determine the going rate for a wholesale contract? I know what I need to make it profitable, but how do I get market numbers for average wholesale percentages? I want to be competitive here

How did you develop your wholesale contract? Was this provided by the retailer? Is this something a legal professional should assist with?

What are some terms I should make sure and include? Quantity pricing conditions? Payment discounts/terms? Any other items you have found that incentivized the retailer.

These are just my initial questions. I may come back with a few more as I continue my research. Thank you for your assistance

 

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Do you have any competitors for your product?  If you do, you can pick their brains by posing as a potential customer of theirs and asking them about their pricing etc.  You can then decide if it is a viable option for you to compete in that market.

Simon