wholesale advice please :)

[millyb60]

Hey everyone,

I've just starting offering a wholesale service with my soap business.. I'm only smalltime at the minute so don't have huge amounts of money to put into buying in bulk.. does anyone have any advice on how to keep wholesale prices down for the customer while still covering costs and making a bit of profit on top? Is there a good way of making smaller orders, (say 20-30 100g bars) more economically viable for both parties?


Thanks in advance for any advice given - much appreciated!!!

Milly

 

[Tabitha]

I don't realy have any tips, but I can tell you what I did in the begining.

Basic markup for handmade items in the US is 4X. Rather 4x what I was soending on the supplies, I 4x what I would be spending on supplies if I were buying in bulk.

For instance. I was buying she for $8.00 a pound (back in 2001) but knew I *could* be getting it bulk for $5.00 a pound. Rather than charging $32.00 for that same pound of shea when I retailed it (to make this more simple I am leaving off jar cost, fragrance, time, etc for the sake of this example only) I charged $20.00.

You can see I was still making a profit of $12.00 per pound but when I was able to buy in bulk later I did not have to change my prices as they were already set at what they should be.

I could not justify charging my customers a higher price because I was new and could not afford to buy at a bulk level. They were already taking a risk buying from someone who was not yet established.

It did not take long before I was able to buy in bulk.

Hope this makes senes.

 

[Lane]

I could not justify charging my customers a higher price because I was new and could not afford to buy at a bulk level. They were already taking a risk buying from someone who was not yet established.

Same here. I kept/ keep my prices low and it drives customers in my direction. I put more time into my business than anything (If I got paid by the hour, I would a be zillionare! ) I've had multiple wholesale offers but decline because I do not want to put the time into an order that large. Of course, I do business differently, and not to profit...so my input probably means nothing...lol As long as I land even, I call it a good day!

 

[millyb60]

..

Thanks Yeah that does make sense Tabitha, and yes your input is appreciated Lane That's a good way of thinking of it, I like both your answers

Thanks again

Milly