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- I need your help -We just introducing new product into UK, my company represents the manufacturer in UK/exclusive distribiotion . At the moment we do direct supply to retailers but demand is huge, wholesalers are desperate to get our product. How to calculate the price for them so it's no too high and too low? How much mark up do they normaly have on snacks?
Some markets like Whole Foods Market - like our products and ask us for the price but they want to go through the wholesalers. How to work out the price taking into account that it needs to go through the wholesaler? How much the wholesaler puts on top ? How much do I need to reserve for their commision?
Often, the best way to price a food product is to begin with the price to the consumer. Check competing products in the UK to start.
Also, ask the wholesaler what price, or price range, he/she thinks will work best, given the various profit margins. We know that Whole Foods will take a maximum 14% margin in the US. Presumably that is the same in the UK.
Does this help?
Stephen F. Hall
Food Marketing International
Food Entrepreneur Magazine
Author: Sell Your Specialty Food, - "A go-to book for any start-up food company" - Oprah's "O" Magazine.
10001 North 77th Place
Scottsdale, Arizona 85258 USA
Working with distributors can be tough, and preparing for them difficult.
To help our clients, we brought together best practices on working with distributors, and we would like to share them with you! Whether you are already selling through distributors or simply want to learn more about selling with them, we hope this 60+ page guide helps you be successful.
The book is a complete guide on distributors, but if you are interested specifically in distributor pricing, you can find an expanded discussion and a couple of charts detailing best practice in the first chapter.
You can get a free copy on our website at www.komida.com/book.
Hope it helps! Good luck!
Sergio Mendoza is President of komida Business Software for Specialty Food Manufacturers. To find out more, please visit our website at www.komida.com.