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  • #965649
    kym.oberauer
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    I import some specialised electronic goods from America and receive a 25% to 30% reduction on the US retail price. I apply a 40% margin so I have a little bit of room to move when customers want to negotiate price. Average spend per customer is about $650.00.

    Recently I have been receiving calls from potential resellers who want to sell my products to their customers. Considering my markup and postage costs (Avg $20 per item) etc. what would be an appropriate discount off the retail price so there was something in it for the reseller and I still make a worthwhile margin?

    Any thoughts on this would be greatly appreciated.

    Cheers,

    Kym.

    #1013233
    Accounts Studio
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    Hi Kym
    I have an import pricing spreadsheet where you can enter your buy price, exchange rate, freight charges, duty etc and see what sort of profit you are making – you can change the prices and see how that affects your bottom line profit. A retailer would normally want to make around 100% on the wholesale price. Let me know if you want a copy and I can email the spreadsheet to you – you can have a play around with different prices and see what works best. Also always make sure you pick a default exchange rate when working out pricing that will cover you for any rate fluctuations.

    #1013234
    King
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    online retailers via affiliate programs typically offer 1-4% commission on sales – so this may be a guide.

    #1013235
    kym.oberauer
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    Thanks for the feedback guys…

    Sophie, if you could send me that spreadsheet that would be great. My email address is [email protected]. Re the mark-up – unfortunately, my customers are very price sensitive to the point many import the goods from the US directly. I have to value add a number of services to be competitive.

    Cheers,

    Kym.

    #1013236
    MML
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    kym,

    at the same time, if you can negotiate a better import freight price with your current service provider.You might have another 10-20% margin on top. Try UPS or FedEx, they are the biggest US company. You should get something cheaper than what you are paying now. If you can’t, I might get you some cheaper DHL price.

    Good luck. If you need further help: [email protected]

    Regards

    M

    #1013237
    Accounts Studio
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    Hi Kym

    Have just emailed the spreadsheet through to you.
    Have a great day!

    #1013238
    Luch
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    Hi guys,

    Just wondering if retailers regarding the industry they are in, always go for 100% margin on the selling price.

    I will be importing high end leather handbags from South America soon to be distributed to retailers, I am calculating 50% margin for retailres while 20-30% for me. does it make sense that way?

    Leather is quite a expensive material and although manufactire in South America, doesn’t leave much more margin than that. Actually, the price that they are giving me is perfect to resell them to the public myself, but I don’t want to be a retailer…

    Any thoughts?

    Sophie, Could I ask to send me the spreadsheet template, sound to be a great tool to have for me? Please do to [email protected]

    Thanks millions!

    Luch

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