Product pricing question (wholesale)

**sukie** · 07-24-2009 01:22 PM

currently i can price what is known as keystone pricing to a reseller.

there is a small profit remaining.

I know that once product is mass produced unit cost goes down and profit goes up but how do you quote a company that wants 5000 units custom made? straight wholesale? Is there a formula?

Say my product costs 5 dollars to make. I can wholesale for 6 resale price is 12

Not a huge profit margin but if mass production brings the 4.8 down to 2.8
then there is a nice bit of profit there.

My question is for custom orders that are basically retail customers seeing the 12 dollar price and wanting a quote fo 1000, 2000, 5000 units.

any advice?

**Ergo1** · 07-24-2009 01:46 PM

Pretty simple here, just scale your pricing to the quantity you will be delivering. It seems you have a good handle on what your costs are for the different production quantities, so pick the profit you want (as long as it keeps the price fair) and quote them on that.

You can create internal formulas for quoting clients in the long term, but that will probably be something you create on your own rather than finding some industry standard.