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 FMCG profit margins distributed across the supply chain?

2018-12-08T14:05:49+00:00By |Categories: Downloads, Resellers|Tags: , , , , , , , |

Working from SRP (Suggested Retail Price) backwards, I see the following for FMCG profit margins: Anchor price/SRP: Start with SRP to your most expensive channel - which represents your top-most anchor price. The markup from you as vendor to retailer is 50-60% to the specialty/top priced retailers. For non-specialty channels - like drug, mass, grocery, club, [...]

How to use margins and benchmarks in financial statements for a CPG or consumer product business

2016-12-19T19:45:25+00:00By |Categories: Finance|Tags: , , , , , |

This post demonstrates how to use margins and benchmarks in financial statements for a CPG or consumer product business. Margins Defined By margins, I mean an expense line item that is relative to net profit, expressed in percentage.  Figure 1 is a basic example with the key margins to which we will pay attention. Figure [...]