How To Set The Wholesale Price

Whether you are purchasing items for your business or are a consumer watching the household budget,knowing if merchandise is being offered at wholesale prices will require a bit of research and a few phone calls,as well as conducting your own market analysis of price comparisons.There are a lot of costs involved in starting and running a business,and without proper understanding of how to set wholesale prices,a business could actually be losing money in the long run,instead of turning a profit.
1 Determine the production cost of the product and the cost of labor.Production costs include the price of equipment,tools,supplies used and fuel.You can also include packaging and advertising as production costs.Labor costs include the time used to create the product,employee wages and Social Security taxes.If the business has no employees,determine your hourly wage and multiply it by the number of hours spent working.Divide the total labor cost by the number of products to get the labor cost per product.
2 Research the same product online for deep-discount sales.For example,a product which has an 80-percent mark-down price can be relatively close to what the retailer purchased the item for.The retailer needs to cover its cost,but will be willing to significantly reduce the merchandise instead of carrying it over on their inventory for the following quarter.
3 Contact Wholesalers catalog.com to purchase a catalog of wholesalers who allow individual and bulk orders on products.The catalog lists wholesalers under product categories.The catalog is updated periodically and contains up-to-date reviews of the products sold as well as information about the wholesalers.
4 Research the average retail price of your product for an alternative method of determining your wholesale price.Divide this retail price by your break-even cost to determine the overall multiplier.Wholesalers can generally charge up to half of retail.Again,compare this potential price to your competitors’prices to ensure that you remain within the market cap.For example,camping tent like yours may retail for$150.If your break-even cost is$30.00.

Whether you are buying goods in bulk for your own business or just for personal shopping,it pays to find wholesale prices.All goods sold in the retail market have a mark up to allow the retailer to make a profit,so these goods can cost more than twice the wholesale price.The right wholesale price will make more money.

(Resource: www.thepandacover.com and google.com)