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Post by miket on Jun 8, 2021 15:14:22 GMT -5
So here's a serious question. A guy I work with at the radio station sells advertising in another town and he mentioned my pendants to a store owner yesterda. My coworker really likes what I do and the business owner says he'd be interested in purchasing some of my work. He hasn't seen it yet- but he did mention to my coworker that I need to understand that it would be wholesale prices that he would buy my stuff for. I'm sure someone here on RTH has done this type of thing and I was just wondering if it's worth it?
And I know the obvious answer. If I'm happy with what he offers I should take it. Anyway, if someone has experience with this I would appreciate some advice!
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Post by jasoninsd on Jun 8, 2021 15:29:51 GMT -5
You want $100 for each of your pendants if you sold them yourself. That's your "retail" price.
He will pay you $50 for your each of your pendants. That's the "wholesale" price.
He will list them for sale for $80 a piece (his retail price) and say the MSRP is $100...so he can say a customer is getting 20% off MSRP.
Kinda my quick thoughts on it...
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Post by miket on Jun 8, 2021 15:49:18 GMT -5
You want $100 for each of your pendants if you sold them yourself. That's your "retail" price. He will pay you $50 for your each of your pendants. That's the "wholesale" price. He will list them for sale for $80 a piece (his retail price) and say the MSRP is $100...so he can say a customer is getting 20% off MSRP. Kinda my quick thoughts on it... I understand the whole concept, my friend. And I get that a business is there to make money.
However, what I think I'm struggling with is selling too cheap. 'Course not many are moving on my website at the prices that I set and they're just piling up on my desk...
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Post by fernwood on Jun 8, 2021 16:25:17 GMT -5
I think your website prices are very reasonable. What type of store would it be? Might be worth seeing if they would take a couple of the higher priced ones. I would insist on having a card with your contact info attached to each pendant.
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Post by rockjunquie on Jun 8, 2021 16:30:31 GMT -5
You want $100 for each of your pendants if you sold them yourself. That's your "retail" price. He will pay you $50 for your each of your pendants. That's the "wholesale" price. He will list them for sale for $80 a piece (his retail price) and say the MSRP is $100...so he can say a customer is getting 20% off MSRP. Kinda my quick thoughts on it... I understand the whole concept, my friend. And I get that a business is there to make money.
However, what I think I'm struggling with is selling too cheap. 'Course not many are moving on my website at the prices that I set and they're just piling up on my desk...
I can't help with a number, but I know wholesale is substantially less than retail. I think it would be safe to let him make you an offer and go from there.
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Post by miket on Jun 8, 2021 16:43:43 GMT -5
I think your website prices are very reasonable. What type of store would it be? Might be worth seeing if they would take a couple of the higher priced ones. I would insist on having a card with your contact info attached to each pendant. I'm thinking it's a fairly new business, a lot of the categories say coming soon. From the look at some of their prices I think I might let them make an offer before I even suggest a price- I might do better that way.
And I like the idea of promoting myself at the same time, thanks for the suggestion Beth.
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Post by miket on Jun 8, 2021 16:47:37 GMT -5
I understand the whole concept, my friend. And I get that a business is there to make money.
However, what I think I'm struggling with is selling too cheap. 'Course not many are moving on my website at the prices that I set and they're just piling up on my desk...
I can't help with a number, but I know wholesale is substantially less than retail. I think it would be safe to let him make you an offer and go from there.
That's what I'm thinking too, Tela. I can always say no or counter-offer if it comes down to that. Maybe he'll offer more than I'm asking
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RWA3006
Cave Dweller
Member since March 2009
Posts: 4,124
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Post by RWA3006 on Jun 8, 2021 16:54:49 GMT -5
And then there's commission...
I know a rock shop just starting out that's a bit short on cash to outright buy much inventory so they do a bit of commission sales.
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Post by miket on Jun 8, 2021 16:57:10 GMT -5
And then there's commission... I know a rock shop just starting out that's a bit short on cash to outright buy much inventory so they do a bit of commission sales. They seem to be more than a rock shop- and they're in an area that is predominately tourist driven. According to my coworker, they aren't interested in commission or consignment. I'll be in contact with them in the next few days and keep everyone posted. I just wanted to see if anyone had any experience with this kind of thing. Thanks Randy!
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standles
spending too much on rocks
Well all I got was a rock ... Cool!
Member since February 2021
Posts: 325
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Post by standles on Jun 8, 2021 16:59:15 GMT -5
miket So I am going to take a different path. Your product should be valued by you at a rpice you are willing to sell it at regardless of the titles wholesale or retail. If they want to buy it fine if not them no harm. The "He needs to understand it will be wholesale" is just a negotiating tactic to make you start undervaluing your product to get the sale and it is already working. The stuff on his page is WAY!!!!! overpriced if you ask me. He is wanting you to sell at chinese junk prices and sell at Collector levels. Determine your price you want and stick to it.
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Post by miket on Jun 8, 2021 18:15:10 GMT -5
miket So I am going to take a different path. Your product should be valued by you at a rpice you are willing to sell it at regardless of the titles wholesale or retail. If they want to buy it fine if not them no harm. The "He needs to understand it will be wholesale" is just a negotiating tactic to make you start undervaluing your product to get the sale and it is already working. The stuff on his page is WAY!!!!! overpriced if you ask me. He is wanting you to sell at chinese junk prices and sell at Collector levels. Determine your price you want and stick to it. Thanks, his stuff is really high... I will probably just see what he says and go from there...
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Post by jasoninsd on Jun 8, 2021 18:38:40 GMT -5
You want $100 for each of your pendants if you sold them yourself. That's your "retail" price. He will pay you $50 for your each of your pendants. That's the "wholesale" price. He will list them for sale for $80 a piece (his retail price) and say the MSRP is $100...so he can say a customer is getting 20% off MSRP. Kinda my quick thoughts on it... I understand the whole concept, my friend. And I get that a business is there to make money.
However, what I think I'm struggling with is selling too cheap. 'Course not many are moving on my website at the prices that I set and they're just piling up on my desk...
I was hoping you understood the concept! LOL I'm curious as to what the outcome is going to be with this. I've pondered approaching some local places - also tourist oriented type places. I'm kind of in agreement with standles. I don't want to undervalue my own products, nor would I want that for you. However, I think if there was a volume purchase that a discount should be warranted...then the question becomes what percentage of "MSRP" YOU think is acceptable to accept a mass purchase. I don't think I'd be happy with 50 cents on the dollar...but I may have to put some real thought into 70-75 cents on the dollar as I wouldn't be sitting on that inventory any longer. That's just me... If it moves better for him that it has been for you on your website (due to his differing exposure), then you'd have a steady way to turn over inventory...if it doesn't move quickly for him, you'd have to consider it a one-time sale. Again, if it moves quickly, then I'd be more willing to accept a slightly lower percentage than I would if it was just a one-time deal.
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Post by miket on Jun 8, 2021 19:11:16 GMT -5
I understand the whole concept, my friend. And I get that a business is there to make money.
However, what I think I'm struggling with is selling too cheap. 'Course not many are moving on my website at the prices that I set and they're just piling up on my desk...
I was hoping you understood the concept! LOL I'm curious as to what the outcome is going to be with this. I've pondered approaching some local places - also tourist oriented type places. I'm kind of in agreement with standles . I don't want to undervalue my own products, nor would I want that for you. However, I think if there was a volume purchase that a discount should be warranted...then the question becomes what percentage of "MSRP" YOU think is acceptable to accept a mass purchase. I don't think I'd be happy with 50 cents on the dollar...but I may have to put some real thought into 70-75 cents on the dollar as I wouldn't be sitting on that inventory any longer. That's just me... If it moves better for him that it has been for you on your website (due to his differing exposure), then you'd have a steady way to turn over inventory...if it doesn't move quickly for him, you'd have to consider it a one-time sale. Again, if it moves quickly, then I'd be more willing to accept a slightly lower percentage than I would if it was just a one-time deal. Right, there's a lot to consider, isn't there? I appreciate your input it helps me to think things through. He may see what I have and change his mind too. Who knows. Anyway, I will keep you updated!
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RWA3006
Cave Dweller
Member since March 2009
Posts: 4,124
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Post by RWA3006 on Jun 8, 2021 19:16:44 GMT -5
And then there's commission... I know a rock shop just starting out that's a bit short on cash to outright buy much inventory so they do a bit of commission sales. They seem to be more than a rock shop- and they're in an area that is predominately tourist driven. According to my coworker, they aren't interested in commission or consignment. I'll be in contact with them in the next few days and keep everyone posted. I just wanted to see if anyone had any experience with this kind of thing. Thanks Randy!
I'm curious about this and hope you'll let us know how this works out. Wholesale and retail is just wordplay and YOU are in the drivers seat and make the rules. I've played this game in selling products to retailers and various outlets. I had one "pretend" alpha dude inform me that my wholesale price to him would be a certain percentage of a yet to be determined retail price. Big mistake. I quietly told him my price for him was xyz and I wasn't willing to budge because I have something he doesn't, which is walk away power. And then I walked away. It's too draining to deal with these kind of people and never worth it in the long run.
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Post by jasoninsd on Jun 8, 2021 19:54:05 GMT -5
They seem to be more than a rock shop- and they're in an area that is predominately tourist driven. According to my coworker, they aren't interested in commission or consignment. I'll be in contact with them in the next few days and keep everyone posted. I just wanted to see if anyone had any experience with this kind of thing. Thanks Randy!
I'm curious about this and hope you'll let us know how this works out. Wholesale and retail is just wordplay and YOU are in the drivers seat and make the rules. I've played this game in selling products to retailers and various outlets. I had one "pretend" alpha dude inform me that my wholesale price to him would be a certain percentage of a yet to be determined retail price. Big mistake. I quietly told him my price for him was xyz and I wasn't willing to budge because I have something he doesn't, which is walk away power. And then I walked away. It's too draining to deal with these kind of people and never worth it in the long run. Good call. When it's an agreement, both parties are involved and are happy with the outcome. When terms are "dictated", you can pretty much guarantee it only favors ONE of the parties.
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Post by miket on Jun 8, 2021 20:18:43 GMT -5
They seem to be more than a rock shop- and they're in an area that is predominately tourist driven. According to my coworker, they aren't interested in commission or consignment. I'll be in contact with them in the next few days and keep everyone posted. I just wanted to see if anyone had any experience with this kind of thing. Thanks Randy!
I'm curious about this and hope you'll let us know how this works out. Wholesale and retail is just wordplay and YOU are in the drivers seat and make the rules. I've played this game in selling products to retailers and various outlets. I had one "pretend" alpha dude inform me that my wholesale price to him would be a certain percentage of a yet to be determined retail price. Big mistake. I quietly told him my price for him was xyz and I wasn't willing to budge because I have something he doesn't, which is walk away power. And then I walked away. It's too draining to deal with these kind of people and never worth it in the long run. Nice, thank you for sharing your experience. It's all new to me and yes I'll probably post what happens every step of the way. Even if he doesn't want any of them. 🙂
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gemfeller
Cave Dweller
Member since June 2011
Posts: 3,732
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Post by gemfeller on Jun 8, 2021 21:26:02 GMT -5
So here's a serious question. A guy I work with at the radio station sells advertising in another town and he mentioned my pendants to a store owner yesterda. My coworker really likes what I do and the business owner says he'd be interested in purchasing some of my work. He hasn't seen it yet- but he did mention to my coworker that I need to understand that it would be wholesale prices that he would buy my stuff for. I'm sure someone here on RTH has done this type of thing and I was just wondering if it's worth it? And I know the obvious answer. If I'm happy with what he offers I should take it. Anyway, if someone has experience with this I would appreciate some advice! The term "wholesale" presupposes a quantity purchase. If he wants to buy 50 of your items you'd make your profit on a larger sale at lower prices. If he wants to buy 5 items at half your retail price it's a very bad deal for you financially. Pricing is the toughest problem in the jewelry business IMO. If you're not covering ALL your costs and making a reasonable profit at whatever price you decide to sell at, you're not really in business. Mark-up depends on how much time, experience, labor and materials-cost go into producing each piece. The jewelry business operates on what's known as "keystone" pricing. One "key" is double the purchase price. Most jewelry stores mark up a minimum of 3 keys, because their stock turns over fairly slowly and they have to cover rent, sales commissions, insurance and other expensive overhead. Very costly items that move ultra-slowly can be a lot less than 1 key, still yielding a nice profit. At the end of the day you have to be very careful and realistic about your pricing. There's always someone who'll undercut you. You have to decide on a long-term strategy and be able to defend every detail in your own mind to develop confidence. Good luck whatever you decide.
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Post by miket on Jun 8, 2021 22:06:16 GMT -5
So here's a serious question. A guy I work with at the radio station sells advertising in another town and he mentioned my pendants to a store owner yesterda. My coworker really likes what I do and the business owner says he'd be interested in purchasing some of my work. He hasn't seen it yet- but he did mention to my coworker that I need to understand that it would be wholesale prices that he would buy my stuff for. I'm sure someone here on RTH has done this type of thing and I was just wondering if it's worth it? And I know the obvious answer. If I'm happy with what he offers I should take it. Anyway, if someone has experience with this I would appreciate some advice! The term "wholesale" presupposes a quantity purchase. If he wants to buy 50 of your items you'd make your profit on a larger sale at lower prices. If he wants to buy 5 items at half your retail price it's a very bad deal for you financially. Pricing is the toughest problem in the jewelry business IMO. If you're not covering ALL your costs and making a reasonable profit at whatever price you decide to sell at, you're not really in business. Mark-up depends on how much time, experience, labor and materials-cost go into producing each piece. The jewelry business operates on what's known as "keystone" pricing. One "key" is double the purchase price. Most jewelry stores mark up a minimum of 3 keys, because their stock turns over fairly slowly and they have to cover rent, sales commissions, insurance and other expensive overhead. Very costly items that move ultra-slowly can be a lot less than 1 key, still yielding a nice profit. At the end of the day you have to be very careful and realistic about your pricing. There's always someone who'll undercut you. You have to decide on a long-term strategy and be able to defend every detail in your own mind to develop confidence. Good luck whatever you decide. Good advice, thank you! I've never been in business for myself, only worked for others an obviously have a lot to learn...
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Post by orrum on Jun 9, 2021 5:46:40 GMT -5
Lapidary for me is buy at retail then sell at wholesale!!! LOL. Truth.
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Post by fernwood on Jun 9, 2021 5:53:52 GMT -5
Lapidary for me is buy at retail then sell at wholesale!!! LOL. Truth. I think this is the same with many. WE do what we love. If that brings a sense of accomplishment and respit, then it is worth it.
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