View Full Version : Retail pricing (sale or return)
05-09-2008, 10:53 AM
I am trying to get a few of my screen printed bags and cushions into a gift shop and they'ev said to give them a price that they will pay for them, then how much they are allowed to sell them for...
This gift shop is in the Goathland - North of England so I can't exactly charge my London prices!
My bags cost around £1 each to buy in - so working on the materials x 2 + time makes them £2, then a screen print only takes a few seconds but the setting up is a pain so maybe make that £3. I sell them on my craft stalls for £5 - so does that sound right, or is £2 a bag too much profit for a retailer to make on them?
Does that even make sense - I sell them to the shop for £3, they can sell them at £5?
Pretty much the same for the cushions too, there's a bit more work in the cushion so I could maybe say £4.50 and £6.50??
What's anyone's thoughts on this? What do you sell to retailers for and how much do they sell it on for?
05-09-2008, 10:54 AM
I was up in Goathland a few weeks ago, nice shops, surprisingly for a tourist trap there's some quite classy stuff in them. :)
05-09-2008, 11:22 AM
Are we talking about the same Goathland....
The shop full of "Golly Dollies" and cast hideous shoes...?
The £1 "Aidensfield" flimsy tote bags that clearly out sell mine, even though they are a far inferior product!
05-09-2008, 03:23 PM
Most shops get anywhere between 30% and 50% of the selling price. Which would be between £1.50 and £2.50. So yes, £2 is a reasonable amount for the shop. If you can get them to accept 30% it would be good for you, but don't go above your suggested £2 which is 40%.
05-09-2008, 03:42 PM
One of my business links recommends the following:
cost of materials + cost of labour = y
wholesale cost y x 2
retails y X4
In your case if it cost you £3.00 wholesale would be £6.00 and sell for £12.00, is this theasible? If not how about wholesale £4.50 sell £7.00, are you ahppy with £1.50 profit? A bit complicated but just a thought.
06-09-2008, 03:13 AM
Of course I was working backwards from your selling price, but Carolee is right, you should really be selling them for more.
One way to think about it is : If you sold all your stuff all the time at the wholesale price you are thinking of selling to the shop, would you be happy? would you be making money or just be breaking even? If the answer is no then your prices need to be higher.
01-10-2008, 09:21 PM
i work on it as double + 17.5% if this helps
25-01-2009, 12:36 AM
outside of your hard material costs you need to factor into your wholesale prince, things like marketing, overhead for the place you produce them and the labour cost for making them, other utilities and then when you work out your full cost to produce you double the price for your wholesale cost then generally the store doubles that price.
25-01-2009, 12:55 AM
This is something I have been thinking about a lot over the last month.
I get the whole concept of 2x wholesale 4x retail, either way it really doesn't take into consideration my time. Man (or woman) hours are expensive these days and I bet there are a lot of us so happy to get some sales that we forget the time and effort we put into our craft.
I've come to the decision that rather than trawl around markets and fairs and pay their increasingly large table fees, with the hope of making a decent return, that I will favour the wholesale market and put my efforts into targeting shops that I think my products will do well in. Ok, I only get 2x cost but potentially I get bigger orders, repeat orders. I don't have the hassle of coming home on a friday after my "normal" work and working to the wee hours to get things ready for the next day, standing freezing while there's nobody around and coming home disapointed.
That said, most of the fairs I have done have been quite successfull, I intend to pick and choose the one I think are worth doing this year and throw the rest of my effort to wholesale.
25-01-2009, 01:09 AM
Your time should be built in to your wholesale price - there's a load of half hidden overheads to consider - most people forget the time it takes to wrap up and take to the PO - and the more orders you get then the more unproductive time there will be, more paperwork and stocking up.
It all needs to be paid for as you may eventually find that you need to take on help with the legwork and pen-pushing/keyboard bashing.
25-01-2009, 01:24 AM
I think that if most crafters took account of how much time they dedicate to their craft and added it to their unit price it would take it way over a reasonable price. Actually it comes down to making your craft slick, working smarter, not spending hours packaging (if you do) but finding ways to keep costs down, making it simple, yet desirable. (whilst I write this I'm thinking of my own products which are relatively low cost, but the right packaging can make the difference)
Crafting is so competitive now, how do you ensure you have the edge over the competition, price your goods realistically? And make a profit?
25-01-2009, 01:31 AM
How much you charge for your time depends on whether you want a well-paid hobby - or a substantial source of income.
Jeff & Becky
25-01-2009, 02:49 PM
We have found that retail shops will want/need to sell our goods at between 2.35 and 2.5 times the cost they buy from us. This has been consistent for our range of cards, postcards, gift tages etc. which are selling in 8 (different) independent retailers in Somerset & Wiltshire.
Completley endorse the comments of 'Lomond soap' re: wholesale v craft fairs and we will be looking to focus on wholesale more than craft fairs this year, although we will still 'show' at those that have proved to be more succesful.
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