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

2018-12-08T14:18:43-06:00By |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 [...]

What is a list of consumer product markets/industries and their average markups?

2017-07-05T10:59:55-06:00By |Categories: Resellers|Tags: , , , , , , , , , , |

I see a lot of articles that highlight the industries/products with the highest markeups (e.g., glass frames, cosmetics, watches, etc.), but I’m not just looking for the highest, I’m interested in a more comprehensive list. Doesn’t seem to be transparent at all! Thanks for your help. This is a Quora question I was asked and [...]

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

2018-07-19T16:18:42-06:00By |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, [...]

Revenue strategies in the early days of your consumer product startup

2017-10-11T15:07:11-06:00By |Categories: Finance|Tags: , , , |

In the early days of your startup, there are three revenue generating strategies that you want to try and adopt into your business. First, try to maximize the price of your product to get as much revenue a possible from a single customer. As an example, if your goal is $1000 in gross sales a week, at [...]

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

2016-10-14T16:23:19-06:00By |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 [...]

What is the best way to raise prices of products selling to major retailers?

2017-05-10T11:35:20-06:00By |Categories: Resellers|Tags: |

This is a Quora question I was asked: What is the best way to raise prices of products selling to major retailers? For a consumer home products brand selling to major retailers online (Home Depot Walmart, Costco, and so on), what is the best way to raise prices?  We are 3 years old and [...]

I am currently working on the development of an e-commerce that sells healthy dry food. What are the typical margins?

2016-11-04T09:55:48-06:00By |Categories: Finance|Tags: , , , , , , , |

Question:  I am currently working on the development of an e-commerce that sells healthy dry food. What are the typical margins? I'm launching a webshop with healthy products, nutritional supplements and natural cosmetics from different distributors. What is the typical gross margin for this kind of products? What percentage of my budget should I allocate to marketing? [...]

How are wholesale prices determined?

2016-10-23T16:30:28-06:00By |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 [...]

How are FMCG profit margins distributed across the supply chain?

2018-12-08T14:05:49-06:00By |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, [...]