Merchant Archive
Thread: Advice on supplier percentages
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Happymob
Tue Jan 11, 2005 7:48 am
#1
Who's accepting the risk if the product doesn't sell? In other words, are you paying him 90K up front or only when the product sells? If I'm taking the risk of unsold product, then I am taking a cut of at least 20% (more if my confidence in the product is not high).
Chef products are pretty good one to resell since prices are pretty established and sales are fairly steady. But you never know when some change in the game will render your product worthless, so it's best to protect yourself.
DocSavag
Tue Jan 11, 2005 8:41 am
#2
I agree that it depends on who takes the risk and how much work is done by each party. If they are taking the risk (by giving you product up front and letting you return what doesn't sell) then 10% seems fair. If you are taking the risks by paying up front and eating the loss on anything that doesn't sell then I think your rate should be higher.
If you are doing a lot of accounting work on the backend you might be doing a lot of work for that 10%. I personally wouldn't do it these days for less than 15% with the over head of keeping it all straight.
If you are doing a lot of accounting work on the backend you might be doing a lot of work for that 10%. I personally wouldn't do it these days for less than 15% with the over head of keeping it all straight.
DesktopSaki
Tue Jan 11, 2005 1:43 pm
#3
My fellow merchants, I'd like your advice.
For a while now, I've been supporting for our town's resident brewer/chef. Since he's a friend, I never took a percentage of anything--he just sold to me up front, and I resold at what he paid. He's having to take a break for a few months so I'm looking to hire an outside supplier, but I'm not sure what the standard percentage to pay them is. The first percentage to come to mind is 90%, meaning he'd sell me a crate of, say, Veghash for 90k and I'd resell it for 100k. Is this high or low or just about right?
Thanks. 
DesktopSaki
Wed Jan 12, 2005 3:13 am
#4
The risk is mine, as I'm purchasing it outright, to avoid bookkeeping hassles. However, the risk isn't too high so long as we don't overstock, as 90% of the product I'll be purchasing moves surely if not quickly, eventually selling out within 60 days. (I'm stocking a bartender with low quality to high-end BE items, priced appropriate to quality.)
DocSavag
Wed Jan 12, 2005 7:38 am
#5
DesktopSaki wrote:The risk is mine, as I'm purchasing it outright, to avoid bookkeeping hassles. However, the risk isn't too high so long as we don't overstock, as 90% of the product I'll be purchasing moves surely if not quickly, eventually selling out within 60 days. (I'm stocking a bartender with low quality to high-end BE items, priced appropriate to quality.)
Yes but you hae SOME risk and the crafter has none in this instance. So you should make sure you get a decent profit out of it. 15-20% is not outrageous when you are taking the risk. The crafter should be happy to have a steady income with no delay in getting his money.
Cafa
Wed Jan 12, 2005 9:17 am
#6
Ina fashion, you also need to incorporate the risk associated with the actual product and quality that you are reselling. If you're retailing 80% base comp armor with a 5% stun layer, you may want to drop your percentage to 10%-ish as you've a high probability of market desire. The same could be said of foods and medicines that you personally know are at the top of their potential.
Buying 5 million units of Havla at 99% healing bonus is the equivalent of purchasing 5 million units of paperweights. Make sure you know your product backgrounds so you can make an informed marketing decision.
Fivo Asia
Message Edited by Cafa on 01-12-2005 08:29 AM
Borion_Sunrunner
Wed Jan 12, 2005 9:27 am
#7
I likewise charge 10% to 20% to resell products from my wholesalers.
I generally make 30% - 50% on items I purchase myself for resale outside of wholesalers (loot items i pickup cheap from the trade forums, etc).
I generally make 30% - 50% on items I purchase myself for resale outside of wholesalers (loot items i pickup cheap from the trade forums, etc).
RamondChappell
Fri Jan 14, 2005 7:40 am
#8
DesktopSaki wrote:Believe it or not, we sell halva when we put it up. It's a slower sale, but it still sells.
He's not saying that Halva doesn't sell, he's saying make sure you don't get something of lower quality that won't sell (Halva at 99% as opposed to 108%, or armor with 80En/80El/80K base 66% as opposed to 80% energy, base 60%).
Ikooga
Fri Jan 14, 2005 11:48 am
#9
DesktopSaki wrote:Believe it or not, we sell halva when we put it up. It's a slower sale, but it still sells.
Havla below 100% does not work at all!
So noone will buy Havla with only 99% bonus, well at least they won't buy it twice, and they will scream "Rip-off" and all that to your face.
DesktopSaki
Fri Jan 14, 2005 1:30 pm
#10
Believe it or not, we sell halva when we put it up. It's a slower sale, but it still sells.
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