Selling through retail outlets - sale or return?

[Goochie]

I am looking at a product that could easily be sold through a certain type of retail outlet throughout the country. This product would retail at around £30 and I believe there is a sizeable margin on them.

Given I would be the "new kid on the block" when dealing with sales outlets I have no real idea of how I would be receieved when trying to sell into these places. They would be independent outlets and not national chains.

Is it common for suppliers to offer goods on a sale or return basis? Or should one be asking the retailed to stump up the full cost to them before then selling on however they please?

I did consider a sort of incentive to imcrease my turnover whereby I could offer them 10 units at £20 each if they buy them or they could pay me £25 on every product sold if they diddnt want to commit at the early stages.

I presume this is fairly normal?

I have avoided "sales" like the plague for all of my working life but now I'm going to have to get my teeth into it, I think!

[Plotloss]

I'm assuming those margins are illustrative?

As if you're the new boy with a new product retailers are going to expect more like 50% a box.

[Goochie]

Yes, those figures were just an example.

I presume when you say 50% per box, do you mean they'd want to keep 50% of the retail price?

[Plotloss]

Goochie said:

Yes, those figures were just an example.

I presume when you say 50% per box, do you mean they'd want to keep 50% of the retail price?

50% of the pre VAT price, depending on product.

If its lighting based drop me a line.

[speedchick]

I have some of my jewellery in a retail outlet on a sale or return basis, I adjusted my figures down to a price that I would be happy with, and they add 20% on for their commission. And as it worked out, they are selling for the same price that I would.

We do have a contract that states that they are responsible for the items, and if they get pinched, then I get paid for them, so basically I either get the money or the goods back. The contract also has an inventory attached to it, so that both of us know what they have and what price I want for them.

Seems to work for us.

[jamie750xx]

Goochie whats the product? Pm me with further info pls