Thread: How Do I Price My Whole Sale Products?

I can tell you how I price my products for my distributors. It may not fit your situation, but I hope that it will give you some ideas and guidelines.

I sell VB and .NET development tools for industrial applications. My distributors basically fall into two categories: Those who just sell the product and those who sell the product but add support for the product.

So I set my prices accordinly. Let's say I have a $1000 product. For those who just sell the product, I may give 15%. For those who sell and support, I give 30%.

Why the difference? Because if Company #1, who just sells and nothing else, sells a product, his customer will come to me for support, and that will cost me money. Therefore, I have to keep more money in order to pay for support staff. For Company #2, who sells and support, I can give them more because their customers will call them. The lower multiplier I give them gives them more money, and may help motivate them to sell more. If Company #2 sells three to one in relationship to Company #1, then I make more money even though I make less money per product.

You can also always ask your distributor. They have to make money, too. They have to determine if selling your product is profitable for the space it takes up. Just a guess (your situation will be different), but start maybe at .6 multipler (40% off retail), and go from there.

I hope this helps, and good luck!

i would check out ebay and other sources and see what you can set your price as.

In my opinion, give the distributors more profit space is the basical, then can help them sell your product more confidence with your quality goods

thank you for your info

Check some B2B site to compare the price. What do sell?
Take a look at http://trade.meritline.com

Originally Posted by willanfei

Check some B2B site to compare the price. What do sell?
Take a look at http://trade.meritline.com

I agree you