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What's Your Wholesale Rate?


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#1 moh

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Posted 07 April 2017 - 12:18 PM

Hi all,

I've been going full speed on marketing my products and have been getting a large amount of wholesale interests, so best think about this ..

 

My price is pretty low on margin already so can't really do the 50/50 that seems to be common.

Anyone do 70/30? Is that considered reasonable or completely shocking?

 

What's your margins BTW if you don't mind me asking. PM me if you don't want to make it public too.

And what's your comfortable percentage?

 

Thanks everyone!



#2 GEP

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Posted 07 April 2017 - 02:14 PM

50/50 is the industry standard. Some potters (like Mark C.) can command a better share of the split, but that's not because his margins are low and he can't afford 50/50. It's because he has a proven track record of his work selling like crazy, therefore the gallery will still make money on the volume.

If you are new to working with galleries, you should rethink you retail prices so the margins make sense when you offer a 50% discount to a gallery. 70/30 would not be considered a reasonable offer.

I did wholesale for 9 years and always gave a 50% discount.
Mea Rhee
Good Elephant Pottery
http://www.goodelephant.com

#3 Chris Campbell

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Posted 07 April 2017 - 03:51 PM

Wholesale pricing is YOUR price ... not any percentage of The Gallery's price.

You calculate your costs to make the item, give yourself some profit and that is your wholesale price.
The Gallery either buys it or doesn't.
Once it has left your hands, they price it so they can make a profit.

If many Galleries tell you your wholesale price is too high, then you need to find ways to make the item in a more profitable manner ... either make them quicker or make more of them or streamline your process. Lowering your price below your costs is not the way to survive.
Chris Campbell Pottery
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#4 GEP

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Posted 07 April 2017 - 08:33 PM

Chris is right that you can charge whatever you want wholesale. But if you continue to sell your work retail as well, at festivals and online, and you sell your work for significantly less than the gallery can afford to, then the deal won't make sense for the gallery. You can avoid this conflict by not selling in the same local markets as your galleries, and not selling online.
Mea Rhee
Good Elephant Pottery
http://www.goodelephant.com

#5 RonSa

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Posted 08 April 2017 - 08:15 AM

Chris is right that you can charge whatever you want wholesale. But if you continue to sell your work retail as well, at festivals and online, and you sell your work for significantly less than the gallery can afford to, then the deal won't make sense for the gallery. You can avoid this conflict by not selling in the same local markets as your galleries, and not selling online.

 

Or sell at festivals or online at a price equal to what the gallery is selling your work for.


Ron


#6 GEP

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Posted 08 April 2017 - 09:29 AM

Chris is right that you can charge whatever you want wholesale. But if you continue to sell your work retail as well, at festivals and online, and you sell your work for significantly less than the gallery can afford to, then the deal won't make sense for the gallery. You can avoid this conflict by not selling in the same local markets as your galleries, and not selling online.

 
Or sell at festivals or online at a price equal to what the gallery is selling your work for.

Right, this is what I was telling moh to begin with. Rethink the retail prices first, so that a 50% discount still provides a workable margin.
Mea Rhee
Good Elephant Pottery
http://www.goodelephant.com




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