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How do I determine a wholesale price for my product?
While selling my hand-crafted knives at an art show, we were asked by galleries for a wholesale price. Are there general rules we should use to determine a wholesale price?

Asked by akmabe3980
Posted: Wednesday, August 08, 2007  |  Found in Sales & Marketing


More answers by Ray Silverstein
Answer by Ray Silverstein
Every industry has an accepted discount structure.  The discount structure will vary from 331/3 with an additional 25% off to 40 and  25%.  The key factor for the wholesale price is really your gross profit percentage.  Since you are making knives, I would venture a guess that the industry discount structure is 40 and 25% off the suggested list price.  I would also guess that your gross profit percentage should be no less than 25% - preferably higher.

If a salesperson is involved, a wholesale transaction receives a lower sales commission than a normal user, dealer, or retail store sale.

Ray Silverstein
Ray Silverstein is founder and president of PRO: President's Resource Organization, a network of advisory boards for small-business owners.


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