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Priscilla Jones posted a new Starting A Business thread on 12/8/2010

We are a start up vending company and have a few questions regarding wholesale pricing.

What is to be included when coming up with a pricing model?

For example, if we are selling blankets would this be correct?

We are thinking we should include

Raw Materials ($7 a unit)
Cut, Make and Trim ($4 a unit)
Shipping ($2 a unit)
Woven labels (.50 a unit)
Hang Tags (.75 a unit)

This would bring our cost to $14.25, how do we make a profit without being too expensive for our customer? We feel that $14.25 alone would be a high wholesale cost.

We are using American made product, which is why it is so expensive. If anyone can recommend a legitimate overseas manufacturing company, we would greatly appreciate it.

Thanks in advance for your time.
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Alice Nadin Responded on 12/9/2010


Priscilla

There is a whole lot more needed in your pricing model - you need your own labor & overhead cost to name a few and that is before you add in your profit margin. Plus when you are selling whole it is expected there is are quantity prices/discounts.

To help you develop a good model, consider contacting your local SCORE office for free business counseling. They can sit down with you to work out the details and build a full business plan. See www.score.org and use the Find SCORE option to locate that office - then will out their request for counseling form.

Alice, SCORE Pittsburgh
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Home » Forums » Starting A Business » We are a start up vending company and have a few questions regarding wholesale pricing.