Questions regarding wholesale/retail prices

[natnanrh]

First of all, I just stumbled across this site and am very impressed with what's going on here. I signed up without hesitation.

Anyway, to make a long story short, I've started my own business, have acquired full funding, and have manufactured my first series of products (a series of informative DVDs). I've managed to make some contacts with potential distributors and such, but I'm also interested in selling the products myself. I've begun designing a small e-commerce store. The site also has a section where retailers can order the product at wholesale rates.

The only problem is that I know nothing about this area of business. Can I sell at reduced cost to anyone, or do they need a wholesale license? Also, what is the discount rate when selling wholesale? My product sells at around $35, so how much should I sell it for to retailers?

Any advice on this would be appreciated. Any links...any books, anything to point me in the right direction would help. Thanks everyone.

[jasaunders]

The reason you would require proof of a business to buy wholesale from you is so you don't have to collect sales tax on the transaction and to possibly avoid violating agreements with the legal owner of the product you are selling.