Is their a formula for wholesaling? I have a new line of unique neckwear for men, and up til now have been selling online. I now am being offered the opportunity to sell at a wholesale price to a men's clothing store, no idea about how to gauge this, don't want to scare them off!

Pricing is all about negotiation. Know that whatever price you come up with, they will try to beat you down. My suggestion is this:

1) Ask them what margins they want to make on the items and use that to back into what margins you need to make given your current price points. If you are selling them at $10 a piece and the retailer wants a $2 margin - can your business get by on $8 per?

2) Or, look at your cost. How much do you need to make on each to sustain your business and grow your company? Then add 20%, 30% or more to that number while setting your bottom line number as your limit not to go below - they will negotiate you down.

3) Lastly, start high - start at your retail price point right now and let them talk you down some - don't go below your limit.

Just keep in mind that these items have to sell retail as well and if they are priced too high because of you or the retailer - then no one wins and the retailer will not come back to re-order.

Capital LookUp - www.CapitalLookUp.com -
Business Information At Your Finger Tips!