How do you work out what price to sell to Wholesalers?

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Well-Known Member
Nov 12, 2019
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New Zealand
Hi Guys

I have someone interested in selling my soap. I know my product, happy with it, know cost pricing etc. My question to use is, how do you work out your wholesale cost price? Do you double or triple your cost pricing? I'm happy for someone else to sell, I hate sales, would rather be the witch in the kitchen brewing up a storm ;)

I would be really interested in hearing other peoples views.
I do a minimum order qty - in my case 18 bars which fits in my largest mold.
I shoot for 60% profit in the wholesale price. So I took my worst case soap (in my case FO drives the cost of my soap bars) and figured out what my 60% margin would be. I have one set price for wholesale based on that - so my least expensive bars will have a greater than 60% profit margin, but yet my most expensive bars aren't less than 60%.
You will need to decide what profit margin you want for your soaps and then set your prices on that. My brewery accounts tell me that they typically only make 15-20% profit on merch, but with my soaps they have more than 50% profit. So if you are having a hard time selling to the retailer, make sure that you point out that they can easily set and get a higher profit margin. Make those soaps unique to that retailer so you don't need to compete with yourself if you sell elsewhere.

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