Forums: Discussions for entrepreneurs and small business.

Hi Everyone!

 

I think some of you may have asked me for this chart and I neglected to send it.  If I did, I`m SO sorry.  Here is the chart (or email me and I`ll send you the excel version).  I found this on a t-shirt forum.  All you have to do it plug in your wholesale price and profit and calculate your profit per sale.  In this example, the actual cost to make the shirt was $7 and the base wholesale price was $14 giving them $7 profit on each shirt.  Then you can play around the the number of units purchased and the wholesale prices you are willing to accept and see where you are making more or less money.  I thought it was interesting that at first the low price/high volume was increasing your profit but there is a point where it starts to slide.    -Tracy

 

Wholesale price	wholesale profit	units purchased	total profit per sale
$14.00	$7.00	25	$175.00
$13.00	$6.00	50	$300.00
$12.00	$5.00	75	$375.00
$11.00	$4.00	100	$400.00
$10.00	$3.00	125	$375.00
$9.00	$2.00	150	$300.00
$8.00	$1.00	175	$175.00

Hi Tracy,

 

But you finally remembered & did send.  THAT`S the important part.  Thanks much.  Pricing is such a dicey issue.  You can`t make the wholesale price too low or you make nothing.  Make it

too high & retailers balk.  And boy do they NOT like it when you raise your price.  But with manufacturing costs going up all the time....

I`m going through this right now. My product is avail exclusively through the internet but I have a national distributor who said they would be interested in it, but the price point is out of whack with distributor/wholesale margins.

 

I`ve gotten a few estimates from manufacturers to make the product and have discovered that it would not be cost effective because I would make NO profit whatsoever.

 

So, I`ve decided - after doing research/surveys - to raise my internet price. That way I`ll be able to make a profit via distribution. So now i have to contact the distributor to let them know about the new structure. Very difficult starting out with no manufacturing base, but hey, Imma give it a shot.

 

 

 

 

 

Good luck to you on that, Pres.  I have also decided to raise my prices on my website.  It absolutely pains me to do it but it will certainly open up doors on the wholesale side of the business. 

 

When I do shows, I plan to reduce the price back to the original price.  This way, new customers will feel good about their purchase and may give them incentive to "buy now". 

 

In this economy it is a difficult decision.  But your product is unique and customers cannot buy it anywhere else.  Think of that.

 
dancingdog