Alright, let me give you a bit more info to work with. I have done quite extensive research on other "gourmet" pretzel businesses on the web. I have ordered from probably 6-8 different places to check packaging, quality, shipping methods etc.
My business is this: I take a pretzel rod, dip it in caramel, roll it in a variety of ingredients, dip all that in chocolate, and then top with even more ingredients. I have over 50 flavors including junior mint, cheesecake, red hot chili pepper, candy cane, pumpkin pie and banana nut bread.
What I've learned is that I don't have an exact standard to copy from. Some places have 5 flavors but don't have caramel on them. others have caramel but only offer maybe 3 different flavors. I have such a unique product, do I mark my price up for that? Also, I have more ingredients packed per pretzel. Mine are about 2 inches wide, where as most that I've seen are only 1 inch. I'm assuming that counts for something too.
So, what I have done so far is determine that, say, I have $1.00 worth of ingredients per pretzel including packaging, but not including salary, rent etc., I charge $1.95 for retail and $1.25 for wholesale. That doesn't seem like enough. But if I charge more, do I lose customers?
I was told by one of my stores that they typically expect to buy wholesale at 50%. If I did that, then their cost would be $1.00 and I get no profit, or I charge $4 for a small pretzel that no one will buy retail, just so that i make money wholesale.
Am I making sense? Can you help me with that info? thanks again...
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