Here is a question posted on Yahoo answers together with the chosen best response.
“As a hobby I make handcrafted bath & body items for family & friends. Recently I was asked to supply a local retailer with a large volume of my products. I can supply the product, my question is how do I handle the sale? Should I sell the product at wholesale or should I sell the product at retail and offer some type of volume discounting? Like 5 or 10% off, also should I ask for a deposit, and if so how much, thanks.”
You should sell at wholesale prices. As the store will be selling a large volume of your goods and eliminates the selling aspect from your responsibility, they are entitled to a profit on the sale as well. Typically, a wholesale price would be 50% of the retail price, however the higher the volume, the lower the percentage as a general guideline. To begin the negotiations you will want to determine the quantity of goods they would like to purchase and the retail price they would be asking. Just keep in mind your production costs and ensure you are receiving a fair profit. Good luck!