What is profit margin for wholesale distributors? - Mothering Forums

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#1 of 3 Old 06-11-2009, 12:28 AM - Thread Starter
 
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Hi! Anyone distribute whoesale products? What is the range and fair % profit margin for distributing wholesale products?

For example, a jewelry's MSRP is at $100. Wholesale price is $50. How much does the wholesale distributor make? I'm not talking about the manufacturer. How much would the manufacturer share the profit with the distributor?
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#2 of 3 Old 06-17-2009, 01:20 PM
 
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The difference between MSRP and the wholesale price is the RETAILER'S profit and has nothing to do with the wholesaler. The wholesaler's profit is included in his wholesale price.

So say a jewelry maker wholesales her necklace to a retailer for $50 and the MSRP is $100. The jewelry maker's costs are $10. She makes $40 'profit' and the retailer makes $50. Of course the retailer can have sales or can raise the price, whatever he deems necessary. The manufacturer and wholesale distributor can be the same or different companies. The manufacturer would set the price for a bulk sale to a distributor, his profit included in there. From there, the wholesaler can sell for whatever he wants to. Does that answer your question?

Generally, retailers expect to be able to mark up the product 50%. It depends on a bunch of things though. There's no set amount.
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#3 of 3 Old 06-17-2009, 03:05 PM
 
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Nursingmom....I think that it's up to each manufacturer, as to what deal they will give you for distributing for them. I don't distribute any of my products (I just retail), so I can't give you an answer.

Carrin Mama to Sawyer 4/06 and TTC #2 I am a WAHM!
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