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  • #995409
    Paul Zoeller
    Member
    • Total posts: 2
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    Hi All,

    Long time forum stalker first time poster.

    I have searched the deepest depths of this forum but I’m still coming up a little short and was looking for some input.

    After dotting all the i’s and crossing all the t’s I have decided to take the plunge and start an eyewear company. What I would like to know is what you all believe or think to be the best rule on sale mark up of gross manufacturing costs (in the box ready to be sold)?
    I would also love to know what is believed to be the best method for for pricing resellers etc, as I will have an ecommerce site with displayed pricing.

    I currently work in sales for a manufacturing company and know that they will not sell for below a base of 30% gross cost.
    As I clearly don’t have the same overheads, would it be wise to take the blow on producing the first run? Or should I stick to a strict guide to aid with cash flow?

    I would love to know the thoughts of all.

    Thanks in advance,
    Paul.

    #1201769
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
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    Hi And Welcome to the Forums Paul. It is great to have you!

    Hopefully some helpful members will be along soon with some on-point advice.

    Cheers

    #1201770
    Rohan@TD
    Member
    • Total posts: 164
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    G’day Paul,

    Congrats on your new business. I’ve spent quite a bit of time over the last couple of months working on pricing strategies for some clients which included wholesale prices. Ultimately, there are no hard and fast rules when you are in this space. Each business has a range of considerations, such as branding, competition, uniqueness of product, retailer margins, costs (including product damage rates), etc. when considering how to price their product.

    When working with retailers it’s best to view them as partners in your own business. Their margins have to be healthy to encourage them to take on the risk to sell your product. If you’re running an eCommerce site, you should never undercut them or your RRP.

    #1201771
    Paul Zoeller
    Member
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    Thanks for the info. I’m currently working on similar strategies for marketing. Its always a lot of work, but satisfying work.
    I will keep everybody updated on my progress. More information welcome.

    Paul.

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