I designed a new product last year, had it manufactured for me and began selling it in my small online shop. I've done a lot of social media work on the brand and the product has developed a good following. The next steps are for me to look at selling to retails and/or distributers.
My limited understanding is that the structure/flow of selling products is as below:
Selling in bulk is new to me, and I'd previously been working on "wholesale" price in my mind, without thinking about distributer price.
Having been to a few trade shows, I've met some distributors who sell multiple branded products to retailers - usually at 50% discount of the RRP.
I'm now confused as to what discount I should be offering if selling direct to retailers, and presumably should be looking at a larger discount if I were to be selling to distributors?
If it helps, my figures are as below:
Product has a RRP of £45.99
Each product costs £4.69 to be produced (excludes customs, VAT etc)
What price should I be selling to
b) Wholesalers (though I think these people buy from distributors rather than from brands?)
I hope this all makes sense!