Profit margins
Author
Discussion

Focus2.0Zetec

Original Poster:

1,787 posts

240 months

Saturday 13th May 2006
quotequote all
I'm looking into producing an engineered product in small numbers (Less than 250). I'd be selling this product through an established agency and I’m just looking for an approximate profit margin I should apply to my costing. I know the agency will be able to offer advice on this but their no exactly impartial, any info is greatly appreciated.

Eric Mc

124,784 posts

288 months

Saturday 13th May 2006
quotequote all
Can't you find out what other businesses charge for similar services?

vixpy1

42,697 posts

287 months

Saturday 13th May 2006
quotequote all
You mean the percentage of your profit you will pay the agency?

srebbe64

13,021 posts

260 months

Saturday 13th May 2006
quotequote all
I'd charge whatever the maximum that the market will bear.

pjskel

10,842 posts

250 months

Saturday 13th May 2006
quotequote all
Typical retail price is 7-10x the manufactured cost.
Given the low volume and selling via agency, you may have to work on 5x max otherwise it's not going to provide profit or attract enough interest.