6 replies to this topic

[clarelower]

We are a new company with a unique patented product which we are debating as to whether we offer it to retail or continue selling off our web sites and shows and various e-commerce sites such as not on the high street. Our production costs and start up costs were high but will not lower significantly with future orders. To make any profit retail and still have a realistic RRP ( we believe) we can only offer 2 times mark up. ie we'd sell to trade for 200+vat, they would sell to public for 400 +vat, I have heard that minimum retailers will take is 2.7 times trade price. A certain high end High street Store in London wants us to put up retail price to 600! and then would take 2 units (ONLY!!) We think this is too high? We are also looking at going into Latin America and USA, can anyone advise re usual markup in these areas.
Any comments gratefully received, its a big world out there!!

[Matt Gubba]

You are always going to be able to achieve much higher margin when you sell direct via your webstore or shows, but if you are able to shift high volumes via retail channels then it could be worth it. I would be very surprised if you start ordering in substantially larger quantaties and you are not able to knock the supplier down in price per unit or find a supplier who will be willing to undercut them.

I personally think 2.7 sounds a bit high. From my experience I think 2x your net price if definitely achievable. But then it comes down to how much they want your product on their shelves.

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