>> ... if I'm selling to a health food store or vegetable stand
>> that will be putting a $3.89 retail price on the product, what should I
>> charge them?
In my opinion, and practice, one does not ask merchants what they
intend to charge for a product, and then attempt to price your
offering. You ask them what their mark-up is, and then you tell
them that applying that figure to your product will give them a
selling price of $ _.__ [insert final figure here].
>Interesting...no one has mentioned cost. How can you sell it for a =
>price, any price, before you consider cost?
Absolutely correct. We cannot continue to allow merchants to
dictate our selling cost. It's a tough line to adopt but the fact
is, if merchants are not willing to pay a price reflected in our
production costs, we simply must tell them, "Well, sorry, I
can't sell it to you for that."
I sell honey to retail outlets for $2.50/lb in queenline jars.
This is my rock-bottom figure. (I get more than that when I
sell direct to the end user.) Applying a 40% mark-up to my
$2.50 they should put a ticket price of something like $4.00
on a jar. This is higher than the Sioux honey you can buy at
the market, but I don't sell to the market. I make a point of
the fact that I am selling local honey in classy packaging.
Our label is slick-looking, and all by itself, has pushed other
honeys off the shelf. If you are serious about marketing honey,
make the package look like something special, and go out there
with the confidence that you are selling something special to a
privileged market.
I was shocked (even appalled) to find that one of my retailers
is selling (I said _selling_, not just displaying) my honey
for $5.99 a pound. I think they have gone way over the top with
it, but their selling price is not really my business. Mine is.
I can counsel them that they'll sell more if they come down a
notch, but I don't set their policy, and I don't let them set
mine.
Susan
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Susan Nielsen | Beehive: If you build it,
[log in to unmask] | they will comb.
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