1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Wholesale pricing

Discussion in 'Black Hat SEO' started by Fendilover, Oct 25, 2016.

  1. Fendilover

    Fendilover Newbie

    Joined:
    Oct 18, 2016
    Messages:
    12
    Likes Received:
    1
    Gender:
    Female
    Hello guys,

    Customers been asking for wholesale pricing when buying in bulk. I know I have to make sure I make a profit. If I sell a product online for $11.99, how much should I sell it if someone buys 10+ 20+ 30+ and so on. Any breakdown would be great!

    Thank you:)
     
  2. Lunaaa

    Lunaaa Jr. VIP Jr. VIP

    Joined:
    Jan 18, 2016
    Messages:
    2,415
    Likes Received:
    1,246
    Gender:
    Male
    Location:
    Canada
    That complety depends on how much it costs you and your profit
     
  3. patriotnews

    patriotnews Senior Member

    Joined:
    Oct 25, 2015
    Messages:
    856
    Likes Received:
    463
    Location:
    under there
    Ok, let's break it down.
    You sell a product for $11.99
    You buy the product for $2.99
    Your costs(website, electricity, processing fees, etc...) Per item are $5.00
    Profit is $4.00
    So the lowest amount you can sell this item for is $7.99 but will have $0 profit.
    So someone wants to buy it in bulk, start up. For 10+ drop $0.50 per item
    Drop $0.50 for every bundle of 10 above that until you hit your lowest price of $8.49. this would be 70 items, and potentially a $35 profit, based upon your costs not increasing(shipping to/from, credit card processing fees).
    Understand?
     
  4. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

    Joined:
    Jul 14, 2016
    Messages:
    148
    Likes Received:
    20
    Gender:
    Male
    Occupation:
    IM Fluent Accountant
    Location:
    Vancouver, Canada
    Like @patriotnews said, but make sure you aren't at full capacity & that you can supply enough at the higher margin if there is demand for it.. If you have no issues supplying the items then you don't need to worry about what i'm saying. Sometimes its more profitable to sell less of your items at a higher cost without the discount.
     
  5. Pinktoe

    Pinktoe Regular Member

    Joined:
    Sep 26, 2016
    Messages:
    234
    Likes Received:
    122
    It depends

    From the perspective of running a small manufacturing company -

    Scenario 1. When we deal with retailers, they are looking to make a profit from our products - pricing should reflect this. We typically aim for either 50% contribution margin or 50% retail price. Whichever makes more sense. 50% retail price is typically good enough for retailers to keep coming back though. When dealing with these people, if we think they would be a long term partner, they don't need to buy in bulk every time, the discount rate is earned by their repeat business.

    So for a product that costs $6 to make, we could charge $12, and then the retailer would charge $24.

    Scenario 2. When some one is definitely not wanting to resell, but are still interested in buying in bulk, you don't need to discount their orders heavily to have their business. They are not looking to make a profit, they are willing to pay much more because of this. I typically only discount by 20-30% for non retailers, large orders.