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Wholesale or Resale Pricing


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#1 Noelle

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Posted 21 May 2013 - 08:12 PM

I have an opportunity to sell some mugs to be used in a local coffee shop. However I am unsure how much to charge per mug. I know what my retail price is for the mug, but do I charge them retail or wholesale prices? Is wholesale typically 50% of the retail price? Also, do they need to pay sales tax if I sell them at wholesale?

I also have a local brewery interested in purchasing mugs for a "Mug Club". I have the same questions as above. Somehow I see this as possibly being different from the coffee shop. The coffee shop buys them direct for use for whoever gets a cup of coffee. But the Mug Club users actually purchase an individual mug (through a brewery "club" membership) that is kept at the bar and used for the same individual each time they come in. I'm I wrong in thinking this is a different pricing situation?

Thanks!

#2 GEP

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Posted 21 May 2013 - 10:02 PM

I've never supplied for restaurants before, but those are definitely two different situations.

I'm pretty sure the coffee shop should not get a wholesale discount, because they are not reselling the mugs, they are buying the mugs for themselves. If they are buying a decent volume of mugs, maybe you could throw in a modest discount, like 10 or 15%, knowing that you might get some customers from the exposure.

The brewery is reselling the mug, so they should get a wholesale price, 50% off is very typical.

Again, I've never supplied for restaurants so maybe somebody else here has more experience with these scenarios?

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Good Elephant Pottery
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#3 Mark C.

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Posted 21 May 2013 - 10:44 PM

I have an opportunity to sell some mugs to be used in a local coffee shop. However I am unsure how much to charge per mug. I know what my retail price is for the mug, but do I charge them retail or wholesale prices? Is wholesale typically 50% of the retail price? Also, do they need to pay sales tax if I sell them at wholesale?

I also have a local brewery interested in purchasing mugs for a "Mug Club". I have the same questions as above. Somehow I see this as possibly being different from the coffee shop. The coffee shop buys them direct for use for whoever gets a cup of coffee. But the Mug Club users actually purchase an individual mug (through a brewery "club" membership) that is kept at the bar and used for the same individual each time they come in. I'm I wrong in thinking this is a different pricing situation?

Thanks!


I have sold mugs to a coffe shop
-all the way accross county to North Carolina.
As they where selling them I wholesaled them-and my usuall formula is to knock about 1/3 off my price as I'm already at a lower price point to start.
Another way to think about this is what they should sell them for the final price and ask 1/2 of that.
I have sold pots to caterers and then it was full price as they are end users.
As far as them using them themselves I would not care but would not wholesale them as they are the end user-maybe 10% off in quanity.
The mug shop is a wholesale deal all the way as they are reselling them as buy and sell.
Mark
Mark Cortright
www.liscomhillpottery.com




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