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, [...]

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

2019-09-12T16:23:10-06:00By |Categories: Resellers|Tags: , , , , , , |

This is Quora question I was asked about how much does Target mark up its items.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 [...]

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

2016-12-19T19:45:25-06:00By |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 [...]