Wholesale Hot Sauce?

[Victor "The Undertaker" Ives]

I've barely figured out a workable business-to-consumer pricing structure and have been recently approached about possibly offering wholesale prices. Is there a standard, accepted formula for wholesale pricing that might help me decide if that's even an option?

Thanks!!!!

[IMKENOBI]

A rule of thumb is to view competitor pricing at retail (to the consumer). Then deduct 40% for the retailer margin. The result will generally be the price to the retailer from a distributor. The distributor margin is 20-30% (usually 20%), so deduct that from the retailer price to get the distributor price. See pp74-75 of "Sell Your Specialty Food" for more detail.

Happy New Year!

Steve

[Victor "The Undertaker" Ives]

I picked up the new edition yesterday...it's wonderful! I guess there certainly IS a formula for figuring pricing...and a very detailed one at that!

Thanks!!!

-Vic