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How to price your products for wholesale

Price too high and buyers walk. Price too low and you work for nothing. Here is how to set a wholesale price that holds up.

Start from true cost

Add up materials, labour, packing, freight and a share of your fixed costs to get the real cost per unit. Many businesses price off a rough guess and quietly lose money on every order. Know the floor before you quote.

Set margin by volume

Wholesale margins are thinner than retail because volume makes up for it. Offer a lower unit price for larger or committed orders, and hold a firmer price on small ones, so both sizes stay worth your effort.

Account for terms

Credit days, free replacement of defects and delivery all cost you money. Build them into the price, or offer a lower price only for advance payment, so your terms and your margin stay linked.

Review as costs change

Raw material and freight costs move. Check your prices regularly and adjust before a rise eats your margin. Tell buyers in advance and explain the reason, and most will accept a fair revision.

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