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Selling direct to retailers


shooterjim
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Hi everyone. I may have the chance to supply direct to several retailers directly. What sort of price would you charge for a sack weighing 20kg and 25 logs? Very good quality ash and sycamore. Obviously they will want to make good money on the deal but it would save me time and fuel if I could deliver to several large retailers. I have seen the nets with a handful of poor logs selling for nearly 8 quid!! What do you sell the sort of thing I've mentioned above for? Any advice gladly received!

 

All the best

 

Jim

 

Work out your costs and what profit margin you require and away you go?

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Do you think asking £7 from the retailer would interest them? Dont want to over price them, but they can always haggle down a bit and ill still make on them. Ideally wanted to sell in woven poly bags, what advantage do nets have, appart from customer being able to see what they are actually buying!

 

I sell mine for £3.50 +VAT this year, last year was £3.25, i think £7.00 is far too dear for trade price,they are large nets as said weighing 14 - 15 kg 12-14 logs in each, if i charged much more the customers would just go some where else,

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A lot of the time customers only look at the unit cost. They don't take a great deal of notice of the size of the product. Cut your bag size down by half and the cost of them by half and you'll probably sell them all no problem.

That's why I think the barrow bags work well for selling logs.

I promoted my barrow bags full of logs at a market last weekend -

Customer: How much are your bags of logs please?

Me: only £21 each if you buy 4 or more

Customer: that's a good price, I'll have 5

Me: thank you

 

And that's how to sell bulk loads for £105/cubic metre, they appear to be extremely good value for money, which they are of course.

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Do you think asking £7 from the retailer would interest them? Dont want to over price them, but they can always haggle down a bit and ill still make on them. Ideally wanted to sell in woven poly bags, what advantage do nets have, appart from customer being able to see what they are actually buying!

 

The retailer will want to double your price (or near enough), can you really see then selling for £14 a bag.

 

As you said earlier you have seen them at £8 a bag, that's expensive but even then the retailer is only going to want to give you £4.

 

Selling through a retailer is the easy way out, they are doing all the selling work, advertising, dealing with customers etc. If you want to make good money then sell them direct to customers and take all the profits instead of splitting it with your retailer

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I think the market price is set by the likes of homebase or b&q.

 

People look at price first then baq size and then qty of wood.

 

Therefore you need to be pricing below £7 to attract retail customers. Wholesale pricing depends on how low you will go below £7 to win the business. As said previously retailers like to markup by 80% to 100% so you would be looking for£3.50 to £4.00 a bag (assuming an 80 by 40cm bag size)

 

http://www.kinnoirwoodfuel.co.uk

 

http://www.kinnoirwoodfuel.co.uk

 

http://www.kinnoirwoodfuel.co.uk

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  • 2 weeks later...

Hi all.

 

Today i have sealed a bit of a deal with a large local garden centre. He is paying £4 for a 15kg ish bag of hardwood. Less than i wanted but the 100 bags sold will pay for all the wood i have purchased so far. He wanted 200 but i dont really want to sell all my supply at cut price as i have a few private orders who will pay a fair price. I am going to look at some more stacks of ash tomorrow so i have a decent reserve of wood for the cold times ahead! The only downside is my trusty old saw is getting tired after cutting approx 5000 logs so far!! Bloody hard work doing it all by hand!:001_huh:

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Hi all.

 

Today i have sealed a bit of a deal with a large local garden centre. He is paying £4 for a 15kg ish bag of hardwood. Less than i wanted but the 100 bags sold will pay for all the wood i have purchased so far. He wanted 200 but i dont really want to sell all my supply at cut price as i have a few private orders who will pay a fair price. I am going to look at some more stacks of ash tomorrow so i have a decent reserve of wood for the cold times ahead! The only downside is my trusty old saw is getting tired after cutting approx 5000 logs so far!! Bloody hard work doing it all by hand!:001_huh:

 

Never turn orders away. If your happy to sell 100 bags at that price sell him another 100. Bird in the hand and all that.

 

Other customers may or may not materialise. You can always buy in more to service new orders.

 

http://www.kinnoirwoodfuel.co.uk

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