Need Help with Pricing Plants for Wholesale

debra in ks · #1 03/06/07, 10:30 AM

This summer I will be selling waterplants wholesale for the first time. They will be going to a local Earl May store. I have sold retail from my home in the past, but never wholesale. For those of you with experience in selling any type of plant, how would you price them? I'm thinking half of retail, but not sure. For example, the hardy waterlilies sell for 35.00 retail. Would 17.50 be a good wholesale price?

Jennifer L. · #2 03/06/07, 01:29 PM

I have a wholesale catalog from Van Bourgondiens, I looked up an expensive tree peony that they sell wholesale for 3 for $49.50. On their retail website they sell the same plant for 27.99 each. But they are a big company and have savings from size, etc. I would think your idea of 50% is right on the mark.

Jennifer

bonsai jim · #3 03/06/07, 01:35 PM

Usually it's 30-40% off of retail for the plants that I buy.

You could also have a sliding scale based on purchase amount- 10% off $500 or more... etc..

Jim

Fire-Man · #4 03/06/07, 03:54 PM

Quote:

Originally Posted by debra in ks

This summer I will be selling waterplants wholesale for the first time. They will be going to a local Earl May store. I have sold retail from my home in the past, but never wholesale. For those of you with experience in selling any type of plant, how would you price them? I'm thinking half of retail, but not sure. For example, the hardy waterlilies sell for 35.00 retail. Would 17.50 be a good wholesale price?

I feel cutting to 50% is cutting to the exteme. Maybe if you had alot and wanted to offer a great deal---So you can move them. I would feel about 30% would be a fair price---If the plant sells for $35 and you take off 30% would put it at $24.50----Which would allow the wholesale buyer to mark that price up 43% for retail---That is a Good Profit to any Store/nursery. I wish I could mark up everything I buy wholesale 43%. Just my 2 cent's worth. Randy

Farmerwilly2 · #5 03/06/07, 04:04 PM

What price did you quote when you made the agreement to sell to the store? Did they agree to buy them without having a price?

debra in ks · #6 03/06/07, 04:18 PM

Thank you everyone for your imput, I really appreciate it! I'm very excited about this and want to do this right the first time so I can expand the wholesale part of the business in the future.

Farmerwilly2- The Earl May buyer was so ecstatic to have found a local supplier (I'm only 6 miles away) that he indeed agreed to buy without my setting any prices. He said he now has to order from a farm around 200 miles away and has to wait 1 to 2 weeks to get his order so there are a lot of missed sales during that time. He was so happy about it that he took me around and introduced me to the other employees there!

Maura · #7 03/06/07, 04:34 PM

I know that when I buy direct from a greenhouse, I pay much less than I would buying the same flat at a retail store. I think a 30% drop is reasonable. Remember, he is getting healthy plants that have not gone through shipping, and will have fewer losses. He can also speak directly to the owner if there are any questions or problems.

CraftyDiva · #8 03/06/07, 05:17 PM

Don't forget the buyer isn't paying for shipping from 200 mikes away, so he might be happy with your prices. Even if high, he saves on shipping.

.

blufford · #9 03/06/07, 08:01 PM

My family used to wholesale plants to retail establishments and 50% of retail (off sale) is a reasonable price. It would be nice if they would cut you a check at delivery. You may have to exchange plants that have soured with new plants if you want to keep your customer happy. Its up to you. Make sure you pick up several more customers as that sometimes these roadsides and strip mall operations can disappear in a minute. I'm not familar with the water plant end but it sounds like its wide open in some areas of the country.....but it won't be for long. Ebay might be another option for you.

doohap · #10 03/06/07, 08:15 PM

The retail organic gardening center where I work part-time routinely marks just about everything up so that a one-dollar plant sells for two dollars. In other words, they double the price.

debra in ks · #11 03/07/07, 10:54 AM

Thanks again for the added imput!

bonsai jim-Thanks for sharing your knowledge. If you have time could you tell me what type of business you have? Homebased? Retail garden center? and anything else you think might be helpful for me to know?

blufford said- "Make sure you pick up several more customers as that sometimes these roadsides and strip mall operations can disappear in a minute." Good advice, but Earl May is a large national company. The store I will be selling to is a fairly new HUGE operation. The building alone looks to be upwards of 3/4 of a million to build and I'd hate to think what they paid for the land. This place is located in the richest county in KS so I don't think they are going anywhere soon. (I live across the county line in the poorest county in KS lol) Also, I will keep doing the retail part from my house as well.

Farmerwilly2 · #12 03/07/07, 04:28 PM

Congrats on a sweet deal!! As the saying goes 'Don't eat alone, leave something on the plate for the other guy'. As others have suggested use a tiered price system, his price to be based on how many units he buys. Keep enough plants to replace losses he might have, within reason, just build that cost into your price. Might consider sending planting/care instructions, a good way to expose your logo, web address, phone number.