That was a toughie! I have dealt with selling to the general public before and made a decent profit with a minimal mark-up. BUT this is a different ball game all together! It’s even in a whole different ballpark! Here is how it’s SUPPOSED to be done! Take the cost of the item that YOU PAY… PLUS ANY packaging, printing and incidentals…multiply that total cost by 2 – 2 .5 times… THAT is your WHOLESALE PRICE… Then the retailer is going to take THAT price and mark it up at least 100% if not 150%! OUCH! Is the end price going to be a price point that the consumer will laugh at?? It’s a fine, fine line that you are walking here. IF you have a sales rep that you have to pay… in the gift market, the real reps charge 15% of sales… you HAVE to have that margin built in! IF YOU DON’T…. the fees are going to eat your profit and you will go under real quick! That is where I am stuck! My product is high quality and Made in the USA. You pay for that! I won’t lower my standards. I believe in sticking with what you believe in. I believe in 100% cotton and organic whenever you can…. As well as Made in the USA. I KNOW I can get cheaper products buying from China, but what is that doing for our own country? ....
So, I pay more… I take a smaller mark up and at this time I don’t pay any reps… I recommend my retailers not ‘keystone’ (100% mark-up) But I cannot control what they do. Now… something else I DO NOT do that they (business advisors) recommend. I DO NOT double the price of my printing! I don’t feel this is a fair mark up. I pay a young man to do the printing on my clothing. I have talked him into a very low price, I KNOW I NEED to pay him more, IF I doubled this amount, I would not feel it would be fair of ME to collect this $$ and call it my profit and not pay it to him. A larger company does the jewelry and home décor I have printed and since I only have small orders I have to pay premium prices for product and printing. My pricing is tight! I have a very small profit margin built in. So as for right now, my main goal is to purchase the equipment to do our own printing so I can control this expense a little bit more. I don’t think I can find my clothing at a better price, but the jewelry and some home décor, I may be able to do some more research or put someone on the hunt for me to find some more product and better prices. I hope so anyway!
So, I pay more… I take a smaller mark up and at this time I don’t pay any reps… I recommend my retailers not ‘keystone’ (100% mark-up) But I cannot control what they do. Now… something else I DO NOT do that they (business advisors) recommend. I DO NOT double the price of my printing! I don’t feel this is a fair mark up. I pay a young man to do the printing on my clothing. I have talked him into a very low price, I KNOW I NEED to pay him more, IF I doubled this amount, I would not feel it would be fair of ME to collect this $$ and call it my profit and not pay it to him. A larger company does the jewelry and home décor I have printed and since I only have small orders I have to pay premium prices for product and printing. My pricing is tight! I have a very small profit margin built in. So as for right now, my main goal is to purchase the equipment to do our own printing so I can control this expense a little bit more. I don’t think I can find my clothing at a better price, but the jewelry and some home décor, I may be able to do some more research or put someone on the hunt for me to find some more product and better prices. I hope so anyway!
At this time, I make a small profit, I LOVE what I am doing, I ENJOY my customers, I am learning as I go…. And I have a goal! What more can I ask for?
YES.. more profit, But that will come in time!
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