Hi all,

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?

Sacwebmistress

I don't know much about the industry so I don't know what to suggest but duh - you have to at least cover your costs :-) Start with that and give yourself a reasonable profit. You could always also add a bonus structure.