Just secured our first retail placement! How do we respond?

Hi, r/smallbusiness!

Before now, my partner and I were only posting in r/ecommerce because, well, that's all we had to worry about. We have a shopify store and we have been primarily selling online, with plenty of wholesale subscription box orders thrown in.

Just this morning, after a week or so of pitching to a few different spas and shops for our women's health product, we found a great partner who aligns with our brand and demographic – plus, they're an actual, physical store in a high-end market. They absolutely want to sell us as part of their retail and think we're perfect – thing is, I'm totally lost on how to respond to their email inquiring about retail pricing. I've looked up retail pricing models before and, I've gotta say, it's a bit confusing.

The product I'd like to sell to them retails at $19.99. We usually sell our smaller quantity version at $7.99, with a wholesale price of $1.99. We came to that pricing based on mutually beneficial needs of previous partnerships we sold to for subscription boxes. Our cost to make the $19.99 product is just under $2, with shipping factored in, as well. If you need more numbers, let me know.

Thank you so much for your time and help! We're really excited about this opportunity and we want to do it the right way – we were just never prepared to do this math for a while and, well, now we're here!

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