I'm a new wholesale business owner and I keep getting asked this quetion:?

Question

"What are your (wholesale) price points?" Am I answering by giving them the average cost of each of my lines of products... the range between which my products fall price-wise or some other information? How are price points figured?

Answer 1

Price points are typically figured by buying in quantity.  A retailer buying 500 widgets will pay less per widgets for the retailer buying 50 of them.  

To be honest, if you don't know this type of stuff, you are in over your head and need to hire someone with experience, take some classes, or read some books NOW!

Answer 2

Actually the answer is relativly simple. Lets say I am buying cd players. If I buy 1-5 cd players I pay $100. If I buy 5-50 cd players I pay $90. If I buy 50-100 cd players I pay $80 dollars. That is how it works. Most wholesalers offer 3 to 5 levels of price points or "discounts". Some other things you might try is offering a 2% discount for paying within 5 days, this will help your cash flow, which is THE most important part of your new business. In fact, I have a saying that cash flow is more important than your mother.

Good Luck...............