Wholesale order pricing question

[Lightning Embroidery]

OK folks here's one I'm not to sure of and would love a little insight. Last weekend I donated a piece to a silent auction for a county level hunters organization that has a national backing. The piece that I did was rather extravagant as far as detail went. Design size is 32x15, 500 and some change cut inches with 42 pierces. My reasoning was sound, as a new business in the area, I wanted to showcase what we could do, and the WOW factor was an important part of that. If I was going to sell this as a 1 off piece I would charge $85. The auction was a huge success with many compliments and it brought $80. Where I need the advice is in a mass price per piece. A representative for the national organization was at the event and wants 1000 pcs. He is supposed to be getting in touch with me tomorrow about finalizing all of the details, but my costs are approx $20 to produce a finished piece. What kind of a discount should I be willing to take to have what would be a huge order for my little operation? Am I selling myself short if I sell these for between $40 and $45, or do I need to cut those margins even closer? Any thoughts would be helpful.

Thanks

[wickedinhere]

Get your money up front, i would discount it but not by 50% i would do them for 60.00. That's a lot of work and you have to
get paid for it.

[tnbndr]

I agree, get your money up front. He has already seen your product and what it will bring at auction. Depending on what part of the country they are it may bring more so if he can get them for $55-$60 he knows he will make $20-$25 thousand dollars for his organization. Don't sell yourself short.

[Lightning Embroidery]

Thank you for the responses. I'll let you know how things progress.

[JEd]

It really depends on how long it takes you. If it cost $20 and takes 10 minutes of finishing then I would be ok with $40-45 knowing I had a whole pile to make. If it costs $20 and takes an hour then I wouldn't.

[wickedinhere]

Don't let someone make more money off of your products than you do.

[BrianMick]

As an avid sportsman.....I do a lot of giveaways to organizations like you are refering. I am not saying give away your time and product, but you have to take into account how dedicated you are to the cause. Some would do it just to break even some don't and make a healthy profit also. Just remember those that do donate and work with the organization usually get some kind of recogniton or sponsorship packages, Maybe even advertisement on the brochures or flyers for the events. This can be national exposure and lead to many more jobs in the future.

just my two cents
Brian

[minnfatz]

I am putting together a quote to get one my products into a national non-profit. I have a product I usually sell for $35 and it sold for $55 the other night in my local banquet's live auction. I am going to try and get it accepted for next year's national package. If I get selected I will have to ship my products 3 times over the course of 6 months, with a total of 1100 units. Some of the things I have to figure out is the cost to palletize the 3 shipments, put barcode stickers on the boxes, embellishing the product with the organization logo, and calculate the wholesale cost. I can make these for less than $12 in material, consumables, and powdercoating and spend less than 10 min per product in cleaning and welding. I may have to send all of the parts out for sandblasting, so I don't have rust issues and I'm not sure how much that will cost either. I am guessing I am going to come in at about $28-$30 each. Hopefully, I will get picked. This would be a nice little money maker and wouldn't be all that difficult of work.

[minnfatz]

The other thing is, I know a lot of the banquet standard packages have quite a few foreign made pieces. I know they want to buy more American made stuff and what we make is what they need and are looking for.