Selling to a retail store... help with pricing.

[bison1973]

Here's my situation... I'm a small producer but steadily growing in sales each year. I need some help with pricing in situations that are new to me. Obviuously I have my own retail pricing and I've sold to restraunts. But now I have a chance to sell to a store who will, of course, resell my syrup. Is there a rule of thumb in this situation? They obviously will mark it up so they can make money. What type of pricing do i offer to retailers compared to my own retail prices? If it helps there are looking at buying roughly 50 one gallon jugs and 10 five gallon jugs.

Your input is greatly appreciated.

[gmcooper]

Bison,
Not sure how much help this is but I wholesale at about 80% of my retail price. I also know that they can also sell retail for higher price than I charge so it leaves them a bit more margin to work with.

[markct]

are they going to sell it retail in those size containers?? i have seen gallons for sale retail but dont recall ever seeing 5 gal jugs in a store! that would be for the serious pancake eater for sure!

[bison1973]

Markct, yes they are going to sell the 5 gallon containers in the store. It's a bulk foods/ food storage type store.

[markct]

so that would be bulk sales then not retail???? so they would mark it up the usual roughly 60 cents a lb like most bulk dealers make between buying and selling

[gmcooper]

Years ago I had a Natural foods bulk store buy 5 gallon cans syrup. I told them multiple times that syrup sold retail had to be hot packed. They kept trying to say the syrup would be used for cooking. End of story they were doing what I told them not to which was they set it on counter and filled containers for customers. Second can was the last I let them buy. The first few customers were getting good syrup but what they got weeks later could not have been good and that is how I found out what they were doing. Some girl from the store called to ask if the lumps were ok when she filled a milk jug!
So I would be very carefull selling 5 gallon jugs.
Mark

[brookledge]

The worst thing about that is they probably see your name on the 5 gal can and then think your syrup is nasty not knowing better. I'd agree be very careful on selling anything over 1 gallon
Keith

[bison1973]

No, it's a food storage retail store. They just sell many items in large sizes. They would retail sell the 5 gallon jugs. They are not opening them and filling people's own containers.

I've heard people say 5 gallon container and larger is a bulk sale... but do I not provide the container, labels, and the labor to fill the jug and put in shipping box, etc? I just can't see selling the syrup to them at $3.10/lb this way.

[brookledge]

No I wouldn't sell them at 3.10 either. But you should factor out the difference in cost of containers and calculate that into the cost. Selling in bulk is very easy to do and if you price it high then someone else can easily get the business from you.
Keith