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Wholesale Furniture Question

6 posts

  1. Veronica Stone

    Joined: October 2007
    Posts: 10,556

    hi, :) I have several questions about pricing wholesale furniture.
    I am starting new business in wholesale furnitures. All the furnitures are going to be imported from China. I need to know how i should price each furniture.
    For example, one table's manufacturing cost is $100, and shipping fee is $50. and labor fee is $50. then, when i sell this table, how much profit can i leave with me? is there any certain percentage set for the profit?
    or i can just make up some arbitrary profit percentage?
    Posted 5 years ago  |  Login or Register to Reply

  2. cxm322

    Joined: December 2003
    Posts: 1,167

    it all depends on your volume. If all you sell is one article a month, obviously you have to charge serveral thousands on top of what you stated to make ends meet and put food on the table. If you sell one thousand articles per month, then obviously the markupcould be much lower.

    Get an accountant.
    Posted 5 years ago  |  Login or Register to Reply

  3. Veronica Stone

    Joined: October 2007
    Posts: 10,556

    Thank you for your reply. so i guess there is no written rule how much you have to sell the products for.
    Posted 5 years ago  |  Login or Register to Reply

  4. cxm322

    Joined: December 2003
    Posts: 1,167

    Whatever the market will pay. If you charge too much you will make no sales. Charge too little and you will equally be run out of business because you cannot cover all your expenses and you have to work 80 hours a wekk just to break even.

    You have to do research on your product and see how much it is going for at retail and then what retailers expect as far as a markup.

    There is no written rule on what one much charge for anything. Don't be greeady nut at the same time, do not cheat yourself.
    Posted 5 years ago  |  Login or Register to Reply

  5. cxm322

    Joined: December 2003
    Posts: 1,167

    Basically what you have here is an item that costs $150.00 to make and $50.00 to ship.

    If folks are willing to pay only $170.00 retail for your product, you will be hard-pressed to find a retailer that will buy your item for resale.

    And, in my opinion, if retail is only $170.00, then I would not even bother with the item, personally. I do not sell anyhting unless I can mark it up at least 50% but 100% markup (keystoning) is my preference.

    Regardless of what some sticky threads here will have you believe, if your wholesale price is not at what the market will pay for wholesale, you will have a hard time selling to resellers.
    Posted 5 years ago  |  Login or Register to Reply

  6. artbroker

    Joined: June 2003
    Posts: 1,760

    We look at something on TV and if it is $20, they paid $5. When I sold framed original art to furniture stores for $25, they sold for $79 and $125. I find when you offer two or three price points, many will go for the most (or more expensive).

    But since you are going to wholesale it, you have to leave room for your buyers to make money.

    When I sold consumer goods, we started with the retail and worked backwards. If the widget could retail for $29.95 then we knew the wholesale could be $10-$15. You have to work out pricing for the 1-5 purchase or what do you price for someone who buys 10-100.

    Find out what the highest price this table can bring. In other words, what is your target market? Furniture stores, catolog sales, department stores, etc. If they can get $400 then you can make your price points down from that. A smooth buyer will ask for the price of 50 to 100 tables, and then the slick buyer will only buy one. You have to start high, because you can always come down in a meeting if the order gets higher.

    And what happens if you get big orders (someone has five stores), will you be able to increase your work force to handle the orders without raising the price? Lots to consider.

    And if you have to charge more for your table, you better have your benefits written down. What makes your table worth more money. The mustard story. Everyone makes mustard, what makes your mustard worth double the price?

    Hope this helps. Good Luck!
    Posted 5 years ago  |  Login or Register to Reply

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