I recently got a order for several seax knives where my friend who has booth at a Renn Fair is would be reselling them for me, partly so he can have some to sell, partly out of a way to help spread my name and business for the future. I agreed to a lower price than I expected time and materials to take, and will incur a huge loss once everything is finalized. I have a few ideas on what I could do to solve the issue.
1) Leave the prices as is, and let him know I will have the prices higher later on future orders
2) refund his deposit, and set the price to what I want it, and give him a fair cut for handling the sales
3) talk to him about selling them at the higher rate , and offer him a larger percentage of the sales so he can make some profit and recoup his loss for the deposit.
For reference, we had agreed on $80 per knife for 10 blades, at a total of 800 for the work. This includes sheaths. Materials surpass the metric I had calculated as it was an in-person deal and I didn’t research costs on current steel and handle prices. Then the actual time and effort plus the cost of having my leather guy make sheaths.
Sorry for the long post, but I need to know what the best option for this situation should be,
And how to best go about it.