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Snapaholics
10-08-2007, 01:02 AM
Hello there, I wonder if anyone can advise me. I have a hair doodad biz and now have a rep in Australia, Europe, and newly in canada. The european rep is just selling my items on her established store, but displays my logo and calls the items "snapaholics whatever the thing is." Canada and Aus have MY site that I designed, with their country name added under the logo, and i maintain the site for them and keep their inentory up to date etc.

My problem is not really knowing how to properly handle markup and how much I should discount the items for the reps. I am not charging a franchise fee, they just buy their items all from me. So I take of like 40% for the Australian rep, and I have to take off 60% from the Canada rep so that she can compete with the one other store selling the same kinds of items (online) she can't have higher prices than them. But I want to make sure my reps make moeny, but I also want to make money. What is the proper most beneficial way to do this kind of biz, for both of us? Some of the stuff I make like almost a 600% markup. Not all, but some. I just have no idea really what OTHERS do for this kind of situation. What is proper?

Thanks

steph

JPnyc
10-09-2007, 11:21 AM
I think before you can calculate that you need to get an idea of the volume you may receive from each. Obviously each unit has to profit you, including all costs involved, but the greater the volume to lower the price you can afford to wholesale at, up to a point of course.