# Probably a dumb question



## tmfinley (Feb 21, 2008)

I am doing my first wholesale sale. When we discussed my prices and what she wanted to pay we decided on a 20% discount from my regular prices. I just wrote up an invoice for her and am wondering if I add sales tax or not. With sales tax she's not really buying my bar of soap for $4.00 anymore. Should I eat the tax or add it?

Tiffany


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## hsmomof4 (Oct 31, 2008)

Usually, if you are selling something wholesale, the person you are selling to is going to turn around and sell it retail, so they are the ones collecting the sales tax. Now, if the person is not a retailer and you are just giving them a price break, then I'm pretty sure that you have to collect the sales tax. But if they have a retail tax ID, then you can include that information in your records and then you shouldn't have to collect the tax. But someone can correct me if I'm wrong on this.


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## tmfinley (Feb 21, 2008)

Oh, right, I don't know why I didn't think about that. She is a retailer and will be reselling them. Told you it was probably a dumb question. I knew my brain wasn't working right.

Tiffany


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## hsmomof4 (Oct 31, 2008)

It wasn't a dumb question.


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## Huminbird (Jul 22, 2008)

How much do people usually wholesale for? I wholesale for 50% of my market price. Does this sound right? I doubt my wholesale accounts would like only a 20% discount.


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## tmfinley (Feb 21, 2008)

She's not buying a super duper amount but enough for me to be comfortable with the 20% off. It is my local pharmacist.

Tiff


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## NubianSoaps.com (Oct 26, 2007)

You will figure out pretty quickly the mistakes you make in putting your products in stores, tweak it as you go etc. She can't make a profit at 20% under your retail, wholesale is about making them a good price point so that they not only sell a lot of your product with the markup they have to put on wholesale, but that it is attractive enough that they will then push your product. If she can sell your 6 ounce bars for $6.95 retail, which is what mine sell for in stores, than you have to let them make a few bucks off each bar or you won't have stores restocking your products, you get the shelf near the floor, which then hurts your business also.

With bars of soaps costing less than $1 to produce if you really want wholesale accounts you have to realize they have more overhead than we do. But like everything from milk to our soap do you know how much you have cost wise in each bar of soap with your salary and paying your goats for their milk? Finding ways to cut those prices is key in being able to keep your prices competitive and your profit acceptable to you. Vicki


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## mamatomany (Aug 7, 2008)

How is that even possible to make a bar of soap for less than $1.00. I think figured mine, with some shea in it was $1.36  I suppose when you buy in bulk it makes things a lot cheaper..


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## mill-valley (Feb 22, 2008)

I don't buy in bulk, but my bar cost (just oils, milk, lye, FO, and packaging cost) was around $.55. I don't use shea (yet) though. Bar size will also make a difference.


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## mamatomany (Aug 7, 2008)

mill-valley said:


> I don't buy in bulk, but my bar cost (just oils, milk, lye, FO, and packaging cost) was around $.55. I don't use shea (yet) though. Bar size will also make a difference.


That is awesome Beth  Now that is a good profit margin


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## mill-valley (Feb 22, 2008)

Yeah, if I ever get around to selling it!!!

Now it's just a cheap gift.


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