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Supplying Trade
We have just secured a license to produce quite a range of stickers/labels specifically to the retail automotive trade.
This is a new area for me and I am unsure about what would be a fair price to charge if we suggest a RRP.
As an example if we suggested that the RRP should be £30 would it be frowned upon by traders if we charged them £20 for the item? Would they expect a larger profit margin? Obviously if they bought in bulk then there would be a sliding scale.
I’d be interested to know if anyone has worked in this area.
jason
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1 Reply
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Hi Jason
Our main print business is Labels and Decals
Ive always found that if you Quote an RRP then your trade customer will expect around a 100% markup or very close you can find that one or two will be happy with 60% on higher value products, but genarally we find they expect 100%
We generaly take our Production & material cost plus gross margin and double it to get RRP, if that then seems a bit high we will trim depending on product value, or we will take it out of our margin and increase the min batch size or tie them into a calloff order just to get the numbers up
Hope that helpsKev…
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