How Do I Figure Wholesale?

Business By joy5678 Updated 20 Nov 2008 , 3:06pm by OhMyGanache

joy5678 Posted 20 Nov 2008 , 12:00am
post #1 of 5

I may have a wholesale customer, but I need to know how to figure out what to charge. Is there a formula? Thanks

4 replies
indydebi Posted 20 Nov 2008 , 2:50am
post #2 of 5

What kind of volume are you calling "wholesale"?

You figure pricing based on any cost savings you derive by being able to buy in larger volume and in being able to schedule your labor for higher efficiency and labor/production savings.

6 dozen cookies is not a wholesale order to me because I can make those by buying a 5-lb bag of flour at the grocery. 125 dozen cookies is a wholesale order because that enables me to buy flour in 50 lb bags and save about 60% in costs. It enables me to buy grated orange peel at 35 cents an ounce in bulk, instead of $1.50/ounce in the grocery.

Baking 300 cookies a day enables me to utilize full capacity of the ovens (costs the same to turn on the oven for 3 dozen as it does for 15 dozen).

didn't mean to get long winded, but just sharing some illustrations to show you how you figure 'regular' costs vs. high volume 'wholesale' costs and that helps you determine a wholesale price break.

chutzpah Posted 20 Nov 2008 , 5:38am
post #3 of 5

Wondering too.

I have the best cheesecakes and brownies in the country, and restaurants and cafes all over town ask me about selling my stuff at their establishments. The first thing I say is that I'm not a wholesaler, the second is the price (I charge full price). I mean, it takes me just as long to make a cheesecake for Betty and Joe who want one on Saturday 'cause they're having company, then it does for Mrs. Café Owner. I mean, just because you charge a cheaper price for 'wholesale' doesn't mean it costs you less.

Charge your regular price.

Mike1394 Posted 20 Nov 2008 , 10:33am
post #4 of 5

Set your retail prices high enough to discount when you need to.


OhMyGanache Posted 20 Nov 2008 , 3:06pm
post #5 of 5

The only time I will discount is if the order is large enough to warrant it, or the items are packaged with my business info (because it's extra advertising for me). When I do discount, it varies on the item - I don't have a set formula. Just make sure you know how much your goods are costing you to produce so you can make sure your mark-up is sufficient (or that you don't discount too much).

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