product pricing
Hi everyone this is my first post I have a question I'm hoping I can get help on. I have a small home based business making seasoned peanuts for bars, clubs and individual sales. I've grown it to the point that I've been approached from people to be distributors. I'm also getting ready to approach a business (gift store at a local casino) that could expose our products to 3.2 million people a year obvious I don't want to mess this approach up by asking to much I'm assuming they want to make 100% but if their looking for anything less that's even better. What is the average profit business shoot for? manufactures to wholesale, manufactures to retail I think you get the picture. Any help would be greatly appreciated
Thanks
Nutso
It really depends on the product that your selling and the cost of making the product. To get my foot in the door I would suggest accepting a lower profit margin until your products get more recognition. Once you get your product out there in the consumers hands then I would suggest increasing your prices a little to increase your profit margin. Just my 2 cents.
Thanks for the reply. What I make are gourmet nuts and in my local area I'm starting to get a real good name recognition. The thing I see with the casino is the high rotation on people going through. I also now this could lead to more sales through my website and I can make up on the bigger discount I give the casino by basicaly using them as a vehical I can exspose my product out to more places and people I could ever do other wise. I guess what I'm looking for is after all exspences are figured into the price on average a business should look at ? profit.
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