Questions for people who buy or sell in bulk

[MoreVolume]

Long story short, im determining wholesale prices for my business. Ive recently received a few emails from people wanting to buy in bulk, and quite honestly I was unprepared.

I want to send a document detailing the wholesale plan, but I'm kind of stuck. I don't even know what angle to come from.

To anyone who has sent or received bulk purchases, could someone give me the format of the type of documents that you have sent or received? Maybe point me to an example? I don't really know what im looking for so google doesnt help

 

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[amp0193]

Long story short, im determining wholesale prices for my business. Ive recently received a few emails from people wanting to buy in bulk, and quite honestly I was unprepared.

I want to send a document detailing the wholesale plan, but I'm kind of stuck. I don't even know what angle to come from.

To anyone who has sent or received bulk purchases, could someone give me the format of the type of documents that you have sent or received? Maybe point me to an example? I don't really know what im looking for so google doesnt help

I'm assuming this is for retail stores?

A good rule of thumb is the wholesale customer is buying at 50% of the retail price.

I wouldn't sell wholesale to anyone without a retail store front. I have occasionally made exceptions for those managing large niche-specific online stores. You don't want anyone selling on 3rd-party marketplaces though, if you are actively selling there yourself.

Let them know your minimums, and any specials, i.e. Free Shipping for $500, 10% off for $1,000 or whatever.

Let them know shipping/delivery times. It would be best if you can have product delivered to wholesale customers in less than 2 weeks.

I require credit card payment up front for first orders. If it's a larger store (multiple locations) I will consider Net-30 terms on a first order pending credit references.

Let them know your return/damaged item policy

 

[MoreVolume]

I'm assuming this is for retail stores?

A good rule of thumb is the wholesale customer is buying at 50% of the retail price.

I wouldn't sell wholesale to anyone without a retail store front. I have occasionally made exceptions for those managing large niche-specific online stores. You don't want anyone selling on 3rd-party marketplaces though, if you are actively selling there yourself.

Let them know your minimums, and any specials, i.e. Free Shipping for $500, 10% off for $1,000 or whatever.

Let them know shipping/delivery times. It would be best if you can have product delivered to wholesale customers in less than 2 weeks.

I require credit card payment up front for first orders. If it's a larger store (multiple locations) I will consider Net-30 terms on a first order pending credit references.

Let them know your return/damaged item policy

You're correct. Bu t2 of the inquiries were from independent salesmen (I don't know what else to call them) and I have been thinking about reaching out to those types. Ive noticed that there are a boatload of them online.


But anyway, thats good info. I was under the impression that the document would have to be like a sales letter. Something to entice them. Im glad that I started this thread lol

My wholesale price is 35% of retail btw

 

[amp0193]

My wholesale price is 35% of retail btw

Yeah, that's pretty low. You should think about bumping that up to get more profit for yourself and/or leave some margin for a distributor if you ever decide to go that route.

You have to factor damaged/returned goods from the wholesaler, as well as your COGS, overhead, and other random costs that might come into play.

 

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[MoreVolume]

Yeah, that's pretty low. You should think about bumping that up to get more profit for yourself and/or leave some margin for a distributor if you ever decide to go that route.

You have to factor damaged/returned goods from the wholesaler, as well as your COGS, overhead, and other random costs that might come into play.

Ive thought about raising it, but I feel as if the numbers might not be as attractive to potential buyers if I raised them. Especially since my product is fairly new. I only have it in 2 stores, but that is off the strength of knowing the store owners since I was a boy. I didn't have to do any real work to get that done. Even at a 35% discount I still profit a great deal. My company controls the production and packaging process so every buck is ours. But with that being said, from the prospective of a buyer, do you think there would be a reason for them to take a step back after seeing that type of discount?

What are some random things that you've had to deal with? I want to know about every possible bump on the road before I travel it.
BTW, do you see any flaws in my mindset? Im still very new to this so I want to know if im thinking correctly about these things.

 

[amp0193]

Even at a 35% discount I still profit a great deal.

Hold on, is it:

1) Wholesale Price is 35% of retail
2) Wholesale Price is a 35% discount off of retail.


Those are two very different numbers. If you're retail price is $100, are wholesalers buying at $35, or at $65?

What are some random things that you've had to deal with? I want to know about every possible bump on the road before I travel it.
BTW, do you see any flaws in my mindset? Im still very new to this so I want to know if im thinking correctly about these things.

Store owners who want to re-order but never respond to their email/phone calls because they're busy. You really gotta go after these direct to wholesale accounts to keep them re-ordering. That's why I'm trying to nail down distributors... it just takes so much time to manage wholesale customers by yourself.

 

[MoreVolume]

Hold on, is it:

1) Wholesale Price is 35% of retail
2) Wholesale Price is a 35% discount off of retail.


Those are two very different numbers. If you're retail price is $100, are wholesalers buying at $35, or at $65?



Store owners who want to re-order but never respond to their email/phone calls because they're busy. You really gotta go after these direct to wholesale accounts to keep them re-ordering. That's why I'm trying to nail down distributors... it just takes so much time to manage wholesale customers by yourself.

My apologies for the confusion. The customer pays 35% of retail. A 65% discount.

To be honest I haven't even thought about the re-ordering aspect. My current situation consists of my associates coming to me for the products. Im going to have to dedicate more time to this than I thought I would. Everything has been happening to so fast these past few weeks.

I really appreciate your help

 

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