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Thread: 230% markup - can this be right?

  1. #11
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    I undertand all of that and I know about overheads so if they want to put a 230% markup on the items they stock, fine. It's whether it's worth my while financially to get such a low return on the items as I have overheads too. This is a sale or return deal - not wholesale.
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  2. #12
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    Quote Originally Posted by Milomade View Post
    for instance - if I sell my new range of button charm bracelets for £30, I get £30 - if they sell it, I get £13 about - that's not much more than the cost of materials!
    If you're thinking like this, it would suggest that you've got your prices wrong - too low. I'm just the same, hence it wouldn't be worth selling wholesale for me at the moment. I'm effectively selling retail at wholesale prices.

    Someone on Etsy explained the way they do it and the penny dropped for me - it suddenly made sense - you work out a price that covers your costs and time and overheads and this becomes your wholesale price - the price you won't sell below - wouldn't be worth doing so. This is your actual item price.

    You then add whatever factor is appropriate to bring that to a retail price - usually a factor of something like +125%. If you sell it yourself, the retail mark up is yours - you have marketed it, paid for your site etc. etc. out of the retail portion of the price - you pay yourself for the effort of selling it. If a shop/gallery buys it at your wholesale price, you get what the item is worth to you to sell it at - the first price you set - and they reap the 125% retail profit for making the effort and their costs in selling it.

    So in reality, your bracelets should be a wholesale price of £30 and you/the shop should be selling them retail at £65.

  3. #13
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    I'm afraid I can't publish my opinions on SoR here, as I would be likely to offend with my bad language.

    If they think they can sell your work, they should be buying it. Simple as that.

  4. #14
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    I agree with you there and I understand what you're saying about having a retail price so that when it comes to selling wholesale I get a good return - maybe my prices are too low - but they're based on what I think people will be willing to spend - I don't want to price myself out of sales as I'm not sure someone will buy one of my bracelets for £65!
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  5. #15
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    I'd concur, I wouldn't even entertain SoR - I hadn't realised that was what it was we were talking about.

    If you do go that route, ensure that you have a good written agreement - what happens if it gets damaged, who insures it, credits on the displays etc.

  6. #16
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    why are you guys so against SOR? just out of interest? My stockists on Fife are both SOR.
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  7. #17
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    Quote Originally Posted by Milomade View Post
    I'm not sure someone will buy one of my bracelets for £65!
    This might be a good way to find out!
    If you put it on you website for £65, then the cat's out of the bag and you might not be able to get it back in again (is that an allegory too far?). If you can get a 3rd party to try selling it for £65 then you may just be pleasantly surprised; if it doesn't work you haven't changed your website & it's business as usual
    why not give it a try?
    J x

  8. #18
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    Quote Originally Posted by Milomade View Post
    [...] maybe my prices are too low - but they're based on what I think people will be willing to spend - I don't want to price myself out of sales as I'm not sure someone will buy one of my bracelets for £65!
    In that case, your pricing model and rationale doesn't allow for selling to shops. If you are happy to sell at £30 as that's what you think people will pay, be happy with it and forget about wholesale (or be willing to sell at ridiculously low prices) - which is what I have done.

    My own pricing strategy has priced me out of that particular market at this particular time. I'm perfectly happy with that arrangement. Maybe in future I'll rethink. But I don't think my work can yet command the higher prices I'd need to set i order to work successfully in than manner - just as you're finding.

  9. #19
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    Right I'm going to sit down and re-work out my prices and do as you suggest - cover cost of materials / overheads / my time and that'll be my wholesale price and then add a percentage markup to that to make a retail price - I'll go for 130% for example - that way I'm covered financially.

    And you're right it's a good way to test the market out and see if thing will sell.

    Problem is, I'm doing my first craft fair next week - so do I use my retail price for that and all the other craft fairs in November or my wholesale price. I'm getting that horrible sinking worried feeling again.
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  10. #20
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    ok numerically dyslexic - how do I figure that out?
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