Selling Wholesale

[farmermike]

How do folks sell syrup product to wholesalers for their retail. On percentages, cash up front or cash after they sell it? We've been contracted by a local store to sell our syrup. How do you, who have experience do it? Any advice appreciated.

[whalems]

I sell mine to the store at the wholesale rate cash up front. I drop off the syrup and they write a check.

[spencer11]

I sell mine at a cafe in town, if someone buys it from them they get 20% but only if it sold, then I get the other 80%

[maple flats]

I deliver to them when it is ordered, usually $200-$400 worth at a time, present an invoice and they pay cash on delivery. They get 15% discount and I have the jugs priced. They are free to reprice but don't.

[SeanD]

I had an arrangement like Spencer's with a place, but it was too disorganized for all of us. It meant they had to keep a record of the sales and the money was kept separate from the cash register. I'd come in from time to time and settle up. It was hard because lots of different people worked the register who wouldn't know what to do and it was an extra effort for them.

We're going to switch over to a traditional wholesale arrangement like the other examples here where I'm basically selling it to them at wholesale and they can sell it at retail price and keep the money. I am interested in how other people set their wholesale prices.

Sean

[gmcooper]

I have tried a couple methods of selling wholesale and now I set my price and they pay on delivery or pick up. Consignment was a huge disaster.
When I set my wholesale prices I start with cost of syrup. That is what would the syrup cost me if I had to buy it bulk. This price is usually higher than what the packers are paying. I then add in my container cost as well as any labels and boxes. Then I have to add in some for lost syrup(30 gallons in drum does not equal 30 gallons in containers). Also you need something for reheating and filtering to pack. Then you should have something called a profit as well. I let the customer set the retail price. They seem to have a better handle on pricing than maple producers do. They know what their operating costs are and know what mark up they need for a minimum and add to that as well. My biggest customer sells my product at a higher retail $ than any of my other accounts.

[ennismaple]

We sell to stores at 75% of our retail price. They are free to mark it up as much or as little as they like. For new customers we ask for a cheque at delivery. For existing customers that we've dealt with for years we give 30 day terms.

The only issue we've ever had was a new customer's cheque bounced this past spring. When we contacted them they apologized profusely and paid in full with cash.