One method for determining channel margins when you are not able to talk with industry insiders

2018-12-08T14:18:43+00:00By |Categories: Downloads, Finance|Tags: , , , , , , , , , |

This post answers this question I received on Quora: Does the manufacturer of robotic kits for kids have a potential to enter markets overseas by offering a 50% discount on MSRP to importers? Will the importer have enough space to markup the price before CE retailers markups his own purchasing price? The answer is unknown [...]

The correct way and the specific equation to use to determine markups and margin for resellers and retailers

2018-07-19T16:18:42+00:00By |Categories: Resellers|Tags: , , , , , , , , , , , , |

I got this question emailed to me by Marty: I'm looking to find out the typical pricing markups (margins) for plastic storage containers, from manufacturing through retail. I came across your post on Quora (dated 3/16) which was helpful, but I had trouble understanding some of it. Wondering if you could clarify through an example, [...]

On average, how much does Target mark up its items?

2016-10-14T16:23:19+00:00By |Categories: Resellers|Tags: , , , , , , |

This is Quora question I was asked. Not including produce, on average Target’s margins in my experience are 25–30%. I use margins and not markup because in the industry, margins is what is used and they are computed off of suggested retail price (SRP or MSRP). So, for example, using a $9.99 SRP, wholesale cost [...]

How are wholesale prices determined?

2016-10-23T16:30:28+00:00By |Categories: Resellers|Tags: , , , , , , |

This is a Quora question I was asked to answer.  Here is my answer. There are many different ways to set wholesale prices and anyone that does that will probably have their own nuances and rules of thumb they follow. For most product categories, consumers will compare you to competitive offerings, as they need a [...]

What are good margins and markup for a food business?

2017-02-08T12:52:44+00:00By |Categories: Finance|Tags: , |

Markup depends on the retail channel in which you sell. Specialty/natural channels run 50-65%, drug is 45%, grocery is 35%, mass is 30%, and club is 14%. If you sell direct to consumers, then the anchor price on a single unit of your product would equal that specialty/natural channel price. In my experience and opinion, [...]

What is considered a healthy gross profit margin (both as a retailer and a distributor)?

2017-05-10T12:57:40+00:00By |Categories: Resellers|Tags: , , , , |

What is considered a healthy gross profit margin (both as a retailer and a distributor)? I have just started a niche business of importing foreign goods at factory prices direct from the manufacturer and selling them at my retail shop at an average markup of Landing cost x 2 + local taxes or at a [...]