Videomaker – Learn video production and editing, camera reviews › Forums › General › Video and Film Discussion › Pricing a video for wholesale › I feel your pain Just cur
I feel your pain
Just curious, how did you derive
35% for 5,000 units
50% for 10,000??
If they told you this, you know thats not you negotiating.
and do you have any terms for wholesale distribution, either by choice or request? (ie: lead time to delivery; half up front, half in 30 days…or all in 30 days with return of overage; etc etc)
Also, with a retailer that has 800 storefronts wouldn’t you expect the intitial order to be 2-3×800? If not less?
That being the case, why not
35% for 1000
50% for 1000+
And 44-50% seems to be the real retail average markup for $20-40 specialty videos
If your video and skill is so specialized you should not be capping yourself at the standard $21.99 or even $24.95 / price per unit. Your speciality video should actually retail as $29.95-39.95.That seems to be a better benchmark for hobby/skill videos where there is previsouly "no competition" or competition that is not worth considering. You should have your videos done to your specs to support your business plan which includes the seminar sales point…then you just happen to offer them at your terms & price point to the retail chain that wants them. They don;t set that price. In wholesale distribution, like you’re talking, they are not the "client." If they don’t want them…their retail competitor will. In wholesale distribution the goal is sell, sell, sell—to everyone. If you control the market like you indicate, then you have some control of the price point—not the retailer. They want you to think their retail price point is $21.99, then they will suddenly realize it should be $30-40…and you can’t re-negotiate.
This theory of pricing is supported by the idea that you can always lower the price. But you cannot raise the price if you start too low. It also places a premium on what you have, which is the only choice out there. You just have to be able to articulate why you start high—with the guarantee to go lower, if need be.
In addition, there is an alternate revenue stream which is the demonstration/advertising/sponsor angle. They could pay a videographer to make your video with their gear. Might not be too successful…but they could try. What would that cost them in time and effort? Something less than that is your revenue from doing your video with their gear. Your arguement is : Or they can pay you, who happenes to use their gear, thereby advertising it. You deserve separate compensation for that. I think you are talking about compensation for this + the wholesale price per unit. You decide what that compensation is, if any. (maybe advertising, maybe a flat rate fee, maybe a "project fee", maybe not a money item but soemthing else…) If it were monetary, I would ask for a project fee in a price range that covers all or part of the cost of the intiial run of videos. That way you spend no or little $$ up front, and bank on the wholesale distribution. No sales? weak sales? you break even. On the first run video this is most important, least you get stuck with thousands of specialty videos you can’t unload. If they balked at that…you still offer video, just use a competitors gear. And now you’re back to negotiating.
BTW, comparing a $20 walmart mainstream video to a specialty hobby video is silly and not applicable.