[Logan]

Hi All

Just have a quick question.

Has anybody got an idea of pricing structure of big retailers ?

I know it depends on many things, but i am sure that there is a kind of table which they use to calculate the selling price...

Like if they buy a product for 3 GBP , min selling price is going to be 3 times (Margin) x 1.17(VAT)

I think the usual margin is not less than 2 and not more than 2.75

But if anyone who has experience selling into any big retailer, will be pleased

Thanks

Logan

[SteveB]

Hi there,

Don't know how big your big retailer is, but the usual number I've come across selling calendars is

trade x 2.5 = retail

Steve

[icequeen]

It really really really(!) depends on the retailer and what you are selling. It also depends on the buyer within that organisation too. I know that isn't what you are looking for in terms of an answer but after nearly 5 years of dealing with most of the high street retailers and several supermarkets it is the most honest answer I could come up with!

Some of the retailers will operate on very tight margins themselves - but they will buy in huge quantity and sell cheaper than everyone else. Others want a much bigger margin.

Just a few things to bear in mind as well when you work out pricing:-

* They may want an "advertising" allowance.
* Many want a discount for settling your invoices on time (settlement discount).
* Most will want to know what you are doing to promote the product so make sure that you are able to afford some sort of advertising/marketing campaign built into your own pricing.

Hope this helps a little, sorry I can't give you any specific formulas. We normally pitch "somewhere near the middle" of any given formulas but they will knock you down from there!!

[Logan]

Originally Posted by SteveB

Hi there,

Don't know how big your big retailer is, but the usual number I've come across selling calendars is

trade x 2.5 = retail

Steve

Hi Steve

Thanks for the answer

My objective here is that i want the retailer to sell the product for aroun 10 GBP , so if i quote 5 GBP , they retail sales price going to be 5 x 2.5 x 1.17 (VAT) = 14.62

so if i want them to sell around 12, i need to quote something like 3GBP

?

Thanks

[IP2]

Originally Posted by Logan

My objective here is that i want the retailer to sell the product for aroun 10 GBP , so if i quote 5 GBP , they retail sales price going to be 5 x 2.5 x 1.17 (VAT) = 14.62

Vat in your equation should be 1.175.

I think if you were looking for a retail price of £10, you could realistically go in at £4.25 + VAT.

But as said above it does depend on what segment of retail you are aiming for?

[Logan]

I am aiming for a kind of niche market

special bathroom sets for kids... But according to my research the retail price needs to be at around 10-12 GBP.

My website is oops i can not paste at the moment

need a few more posts

[IP2]

Mark up in that sector is typically 2.35% inclusive.

[SteveB]

Sorry, should have clarified a bit earlier - I'm not VAT registered, so with my calendars, the 2.5 include the VAT payment the shops will have to make, but as stated above it varies depending on product, size, location etc etc. I have one shop that works on a 25% markup only - good for me, but not sure how long they will actually survive.

[Logan]

Thanks Steve

With the information all of you submitted, hopefully will be able to achieve my targets...

Will keep you updated later on

Logan