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  • #970007
    DRAKE
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    Hi All,

    Just wandering what the pros/cons are of selling the same products both retail and wholesale?

    I plan to have an online store selling my products to the retail market, but i would also like to have physical stores (stockists) around the country carrying my products as well.

    I want to add a “become a stockist” page to my site, and also do the footwork around the country trying to sign up stockists, all the while having my online store running as well.

    Will this work?

    #1042082
    MattR
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    Question.

    Why would a stockist want to compete with you?

    #1042083
    DRAKE
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    that is the first most obvious question that came to my mind… i thought i would seek the opinion of others.

    #1042084
    On the Up
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    Hi Drake

    I’ve been considering the same dilemma and have decided to go retail only from my own online store for a year first and then consider wholesale. This decision is driven mainly by price. Finding the right price mark for the RRP which allows wholesaleing is tricky! Retailers who stock your product expect a 100% profit and to be selling at the same price that you sell at.

    But if you can get the price right, it’s a useful tool in getting your product out in front of more people and hence more sales.

    Good luck!

    #1042085
    PaulyT
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    Something to consider is your stockists would most likely need to purchase (demand) the items at a min of 35% less than what you are selling them for online…at least in the area of my business.

    #1042086
    DavidThomas
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    Its definately a good option, I have been doing it for a few years now. I co-own a wholesale company, that my Retail telco purchases all its services from. So in a way, I directly compete with my own wholesale clients.

    It means you can be at the top of your game in both worlds, because you trade in both worlds.

    And yes, at least 30% margins for your competitors – even better work out what other competitors wholesale the product/service for.

    #1042087
    OCDknits
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    Hi

    Bit late on this thread, I am considering the same situation and I have thought that wholesale sales would require much greater minimum orders, eg to get the wholesale price you must order say min. 100. For retail sales the minimum would be as low as one.

    So is there a standard for wholesale and retail markups? I have factory prices for the product I am considering and wonder what markups I should apply?

    Is there a standard by industry? if so how do I find this info?

    Cathy

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