How to Determine Wholesale & Retail Prices
Whether you are running a franchise business or starting up your own boutique, you may be interested in figuring out how much you should sell your product for. When you purchase your merchandise at a wholesale price, marking up the price may vary, depending on the current market and economy and your target consumer's audience.
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Instructions
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Wholesale Pricing
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Determine the type of product you plan on selling to your customers. If you plan on selling clothing, specifically determine the type of clothing you are looking for. If you are planning to sell electronics, research upcoming brands and trends ahead of time before purchasing, as technology advances quickly.
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Research brands that sell the clothing you are looking to sell. If you are looking for wholesalers, you can find information on the Internet about local wholesale dealers, as well as global and International wholesalers.
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Search within wholesaling websites for the product(s) you wish to resell. If you are looking for custom manufacturers, many wholesalers also feature this option upon request.
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Compare pricing in your search results by using multiple websites and companies that offer the products you want to sell. You can use the wholesaler's search bar to specifically search for the type or brand of the product you are looking for. You can usually request free samples of the products you want to stock in order to test the quality and overall durability of the company's work.
Resale Pricing
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Purchase wholesale products at the lowest cost to your business in order to keep the pricing as low as possible for your customers.
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Research your field's trends and your product stock in order to determine pricing trends and spikes. You can also compare similar brands and competitive store prices, as well as their coupon deals, in order to offer your customers the best deal possible.
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Figure your company's needs as far as monthly and yearly bills and financing, as well as your employee salaries, your salary and benefits. All of these should be taken into account when determining the markup on your products.
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Determine the amount of profit you want to make with your overhead and bills calculated in. This should be part of your company's overall financial strategy. This will help set a general markup percentage for your products.
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References
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