Wholesale Pricing

[John]

Have a big client (20,000) pieces per year that wants wholesale pricing. We've always done flat rate embroidery to keep things simple.

Looking for some insight on what you all do and the quicker the better - as we need to quote back today

[AACE]

I would look at my profit margins and give them a percentage discount. I never give wholesale pricing unless the item is going to be resold and even then I make sure I making a some kind of profit for my work.

[Juli in Kona]

Are you going to loose your client if you don't give him a discount? Do you want to keep him? Can you up-sale and get more business from him? How about a design in wood on a hat? I do that and it is totally unique and I get good money!

[John]

I would look at my profit margins and give them a percentage discount. I never give wholesale pricing unless the item is going to be resold and even then I make sure I making a some kind of profit for my work.

It's a new client - and they sell to business. They are a big uniform company that also does embroidery sales so they need a profit. We are replacing a local vendor that just got out of the business.

[Greenwing]

did they share the previous pricing with you?
They may be the reason the other company went out of business.
I do offer levels in my pricing.
at a point I actually farm it out when the volume gets high.
I have a very good wholesale embroidery company in my city.
they are great to work with.

[Juli in Kona]

Jerome, My thought exactly. John, You have to be comfortable with the price you set. 20 thou pcs/yr is 385 pcs a week. Maybe you could use this as a filler - if the time constraints permit. Gee, this may be the opportunity to get a couple of new machines. I'd get a contract with these people. But I wouldn't be doing this as it is way, way out of my league. Good luck.

[John]

Jerome, My thought exactly. John, You have to be comfortable with the price you set. 20 thou pcs/yr is 385 pcs a week. Maybe you could use this as a filler - if the time constraints permit. Gee, this may be the opportunity to get a couple of new machines. I'd get a contract with these people. But I wouldn't be doing this as it is way, way out of my league. Good luck.

Indeed Julie - We got the gig btw. If you're curious where we ended up, PM me. We decided for us right now, flat rate up to 10k stitches was best for us. We thought about flat to 8 or 9k but in the end knew most designs would be in the 4-7k range based on their portfolio. We have 3 Big Reds and yes - the thought has crossed our mind to pick up one more if we have the opportunity in the next few months for a reasonable price - Oh HUGO..... Bottom line, this keeps the machines running - and that's a good thing (especially with 2 - yes TWO kids in college right now).

[John]

did they share the previous pricing with you?
They may be the reason the other company went out of business.
I do offer levels in my pricing.
at a point I actually farm it out when the volume gets high.
I have a very good wholesale embroidery company in my city.
they are great to work with.

LOL - the thought did cross my mind... this was a big shop within a 15 mile radius of us that I honestly never heard of but they had 50 - that's FIVE ZERO heads! Anyway, I don't think this client was the reason they shut down but they said they were only given a weeks notice of the closing.

Anyway, this is a GREAT opportunity for us.