We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Profit split for a sales proposal
Having started a small business, I've been looking to start opening up some new sales channels.
Recently, I was asked to submit a sales proposal to a gift retailer, who are interested enough, at least, to consider if they will trial a few of our products. I've broadly put together the proposal itself, however, my difficulty is determining how much of a split of the sale price of each product I should offer or even what methodology I would apply to coming up with a number.
Having search for an answer, I haven't come across anything clear to me. I did read of offering a 60%/40% split to the retailer but I don't know if that makes it attractive to the retailer at all or if there is an industry standard practice for this sort of offering.
As a slight aside, I also realise that with already fairly narrow profit margins, after subtracting the cost of production for each product and then having another fish take a bite out of what's leftover, it will probably leave even less profit. However, if the proposal is successful, it would mean greater exposure and hopefully open up other opportunities.
Anyway, got to start somewhere and learn along the way.
Answers
I sell gifts online in the UK that I purchase from a supplier of gifts and the split is about 60/40 so you are on the right tracks with your thoughts .
That's great, thank you for your input :)
Good decision to start your business. To grow your business popularity, you can read blog and articles and make strong your business strategies.
6 Tips to Reach 100k Views on YouTube Video
100K YouTube Views Will Get Using These Tips