How To Price Your Products For Wholesale
How To Price Your Products For Wholesale
pricing your products for wholesale doesn’t have to be scary. today we’re going to walk through the exact formulas I've used in my business for years to confidently price my products for working with retail buyers. Let's start with the basic formulas you’ll use…
cost plus pricing elements
product cost = materials + labor
keep in mind that materials are any expendable goods, including your packaging. and the cost of your product could be per inch, per ounce, lb, piece of paper, etc. pricing for materials can also fluctuate depending on the market cost, or if they are vintage or thrifted items. how much time does it take you to find the products? put this into time or labor. for example, if someone gives you something, how much would it cost if you had to buy it again? you want to be able to sell over and over again in wholesale.
labor is the cost to get your products made.
production time x hourly rate = labor costs.
Now take into consideration the hourly rate you need to support yourself. are you paying yourself a living wage? don’t forget that you have to include the hourly rate you’re paying any employees or laborers to make your products.
while making these calculations, you’ll want to separate billable and non-billable hours. billable hours include any time making the actual products. non-billable hours would include tasks like marketing, communications with buyers, etc. you also can’t forget about overhead costs which could include: rent, utilities, marketing, etc.
cost plus value pricing
product cost = materials cost + labor + value
take into consideration what the industry standards are for the value of your products. you want to make sure you are making a profit and if your items are one of a kind, there is more value in those products. your line should reflect pricing that makes sense to the buyer. In other words, you don’t want to have a huge gap in your pricing for your line. if most of your items are in the $30 range, it will seem odd to have something for $75. Can you create a line around that one piece, or can you lower the price? if not, it may not need to be sold wholesale. keep it for your retail customers!
Want to walk through pricing in a more in-depth way? Take my School for Wholesale Pricing course for only $97 today! You will get immediate access to 5 modules that will give you the tools to price your products for profit at wholesale!
If you have more questions about wholesale or retail pricing, shoot me an email or dm me on instagram!