Hi guys. I have a side hustle where I make and sell muesli and other food items. I have been approached by a distributor to sell my products in WA. I haven’t dealt with a distributor from this point of view before. The distributor has sent me this in an email and I’m not clear on what it means…
“ Just going through the pricing ….. is there room to move on the distributor buy price? Currently stores are looking at a minimum of 25% GP. We are struggling to reach this even giving ourselves a 18% GP (delivery not included).”
I have provided wholesale and retail prices only.
Can someone please explain this using an example of $19.95 RRP $13.30 WS.