326, Pricing for Wholesale & Distribution|
Posted by Sacwebmistress, Fri Apr-18-08 05:47 AM
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?