The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Let's Talk About Wholesaling through Distributors

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.


Legendary Contributor
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
May 27, 2013
United States
So, I'm working on my pitch for distributors, and before I reach out to anyone, I'm trying to wrap my head around pricing. I'll round the numbers to keep it simple.

My current per-unit set-up, with no distributor
  • COGS - $5
  • Wholesale - $10
  • Retail - $20

If I add a distributor in the mix, should I try to keep the retail store at keystone pricing, and split the $5 profit with the distributor, so they are earning 25% of retail price?

So like this:
  • COGS - $5
  • Distributor buys at - $7.50
  • Wholesale buys at - $10
  • Retail Customer buys at - $20

My average wholesale order is $300. So on a typical order, this would yield these profits:
  • Me - $75
  • Distributor - $75
  • Store - $150

50% of stores choose to re-order, and do so about every 3 months. These accounts would be $25/mo profit for me and the distributor.

So questions:
  • Does that pricing make sense? Would that be a good deal for the distributor?
  • Would it be worth increasing the stores' buy price to beef up my and/or the distributors profit?
  • Are distributors going to want more than 25%?
  • What are your current pricing arrangements, and what else have other distributors you've talked to asked for?

Any other tips or experience the forum can share about working with distributors?


Silver Contributor
Read Millionaire Fastlane
Speedway Pass
Mar 24, 2014
Where'd you land with this, man? It's been 8 months (this is most recent thread that came up for the search 'distributor!) so I'm guessing you figured something out.

I'm in a similar place that you were. Getting lots of distributor requests, just trying to figure out the best way to play it.

Sponsored Offers

MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Cool - glad to have you. And yes it should help a lot. When you are in the new group just post...
  • Sticky
MARKETPLACE NEW: The Best School for Going Fastlane (Now open for summer enrollment)
Hey everyone, I have a big announcement to make about how we are going to be working with...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Chris is super sharp and is aware of many facets of entrepreneurship and can help get your...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
Any chance to make it available outside of US? It has been available outside of the US on...

Forum Sponsor

Learn Fastlane Business Skills & Get Profitable Within 30 Days...

Get Started Now

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom