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Forum nameFinancial Feast
Topic subjectWholesale/Distributor Pricing Question
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518, Wholesale/Distributor Pricing Question
Posted by Sacwebmistress, Mon Apr-21-08 06:35 AM
Hi all,

I tried posting this in ecommerce but got no responses so I'm hoping I'll have better luck here.

Our company makes adult novelty items and we have been selling to a major retailer who will be distributing our products wholesale to other retailers. I have already established pricing to sell directly to this company's retail business, but now I need to come up with a way to price for distributing my product. They suggested 30-30-30 meaning 1/3 to the manufacturer (us), 1/3 to distributor, and 1/3 retailer. This sounds fair, but our product even if manufactured on a large scale is labor intensive and 1/3 is not going to be enough to cover our costs.

Any suggestions out there on pricing for distribution?