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    bodhibalm
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    Hi, I just came across this forum through googling. I have a very small online business, I make a product at home, and post it… I do have one local shop that has a consignment type thing where for a monthly amount my product sits on their shelves and any sales go directly back to me.
    I have considered approaching some shops around Brisbane or in the future Australia wide to see if they would purchase it as a wholesale price and sell it to avoid the postage cost for my non local customers.
    The dilemma I have is that we have kept our price down low, on purpose as similar products in this line are often very pricey and not always doable for a lot of people.
    I sell our product as a bulk pack, which reduces the individual price, this is the lowest price we could afford to sell and still make some profit, but if a shop was to buy them for that price, they would probably only make $2 per item, am I assuming correctly that is not enough of a mark up for shops to consider?

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    bb1
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    bodhibalm, post: 237465, member: 83737 wrote:
    I sell our product as a bulk pack, which reduces the individual price, this is the lowest price we could afford to sell and still make some profit, but if a shop was to buy them for that price, they would probably only make $2 per item, am I assuming correctly that is not enough of a mark up for shops to consider?

    I guess if they can purchase it from you for $1 or $2 and they get $2 per item, then all is reasonable. But I am guessing from your query they are paying much more, in which case $2 isn’t much.

    People often quote a 100% markup on wholesale price, but this does vary, and could depend on volumes, the initial start price, how fast they sell the stock. etc. I have a couple of items I sell for a 50% markup, but its a nice 50%. So there is no hard and fast rule, but you have to think is the $2 worth it for the retailer. If I purchased an item for $5 and only made $2, well I wouldn’t purchase it.

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