Please help

[coach]

I have a very nice gift store interested in carrying my pens and perfume pens. They want me to bring a wholesale price list on Thursday. I know this has been discussed before, but I need some input. I'm thinking 30% off maybe.
Here are my prices:

Regular slimline- $25
Special slimline (wood,resin,laminated)- $30

Euros- $30
Special Euros- $35-$40

Cigars- $40
Special Cigars- $45-$50

Barons- $75 (w/case)

Perfume Pens- I have only made two and don't know what to ask yet.

 

[Old Griz]

I sell my perfume applicators for $30 retail.. since the price of kits is about $2.30 in lots of 10, figure on $2.00 for a decent piece of wood you are into the kit for about $4.50 with finishing supplies... They turn real quick if you don't do a lot of fancy shapes (like I tend to do)... I would wholesale them for about $20...
I think your wholesale prices are in the ballpark, with the exception of the Baron, but I don't know what kind of case you are referring too... I start my Barons at $75 retail
I also do not know what kind of market you are in... but a good gift store should be able to make a nice profit on good merchandise... and worst case scenario, they will make you a counteroffer that you might be able to live with... but I would not go below 45-50% of your normal retail price.
Also remember that the store will probably want to sell them for at least what you do retail.. if you are also doing local craft venue sales, make sure you do not sell for less than the gift shop price... that can cause bad blood...
Just my 2 cents Coach... I ain't no expert...

 

[rtparso]

Your prices sound about average but I would not take all of the price out of your side. If I have a repeat or bulk custumer I will com off the price a little but if the store wants to sell them let them raise the price a little. Like sell them a $25 pen for 20 and let them sell it for 30.

 

[arehrlich]

Coach,

It's difficult to sell against yourself in the same market. IMHO, let the gift store sell the pens for the same price as you are selling them. A 30% discount is reasonable - but if they give you a guaranteed number of sales and a minimum order, you might want to dig a deeper discount.

One question that should help you set your price... are they taking the pens on consignment or are they paying in advance. If they pay in advance, then they are assuming the risk and a bigger discount might be in order. But don't go above 40%. This is a handcrafted item, not mass production.

Just my 2 cents - with a firm value of half of that.

Alan

 

[coach]

The prices I gave were my retail prices. I was thinking 30%. They will be buying them outright as they do not do consignment. Thanks for the info. Keep it coming!

 

[arehrlich]

30% on outright purchases is not bad, especially if they will advertise your name with the pens and accept special orders. The 30% could be paying for both marketing and project management.

Good luck and let us know what happens.

Alan

 

[jdavis]

30% sounds within reason. Will get your name out. Word of mouth sells our pens.

 

[ed4copies]

Suggestion: Most wholesalers require a minimum order and have a sliding price schedule. Give them 30% off, but require a $250 (or number of your choosing) opening order. I agree 30% is good for both sides. Also, their customer is unlikely to be the craft show customer-so they are unlikely to be confined by your craft show pricing. Share the info with them, but let them decide on THEIR price. Even cars are MSRP (manufacturers' SUGGESTED retail price).

Good luck and good selling!!

 

[Mainebowlman]

Coach, here in Maine I have just started wholesaling my pens and other turnings. Whatever price I charge, my customers will retail for double...called a 100% markup. That's the norm in our local gift shops. Some ask me their cost; others ask what the item sells for. If they ask the latter, they expect their cost to be 50% of that price.

Think display 'cause that's what the shop owner is thinking. I show my pens in a rosewood case I get from woodenpost.com (http://www.woodenpost.com/products/Pen_Pencil_Boxes_Display_Cases.htm). $40. It makes an awesome display - 12 pens seen through the glass top and - voila - 12 more pens pop out of the drawer below. I tell them they will get the case <u>free </u>if they buy all 24. FREE is an effective word - I sold 2 complete units so far.

I only try to sell in dozens because they're used to buying that way. Feel free to say: "_______ is my minimum order". You could negotiate with a small shop: "OK, just for you on this first order I'll sell a minimum of ______" My first sale was on consignment. "I'll see how they go," said the owner. I only did consignment once. I don't want to tie <u>my </u>money up. I'll take the fruits of my labor...and my materials investment...<u>now</u>. Plus, shops have more incentive to display my things better and actively sell them if <u>they </u>have the cash investment in them.

Fortunately, I'm in a tourist area on the southern coast of Maine so visitors love to buy things made locally. And shop owners like to stock those items too.

This was long, but I hope it helps you and anyone else who's looking to wholesale their pens or other turnings. Email me if you have any other questions I can help with.

Now if I can only get my pens to look as good as many that I see on this site....

Jack

 

[JimGo]

Interesting link, thanks Jack! The 24-pen display is very sharp.

 

[darbytee]

Thanks for the link and the techniques Jack. That's a great looking display case.