Discussion
Examples
New cars 15%
Electrical Appliances 30%
Clothing 50%
Trend Clothing 59%
Cosmetics/Fragrances 75-80%
Crystal Ware 60%
Gifts and clocks 55%
Food Retailers 45%
As stated though, with special offers etc. this can vary greatly (and obviously will depend on the particular sector)
New cars 15%
Electrical Appliances 30%
Clothing 50%
Trend Clothing 59%
Cosmetics/Fragrances 75-80%
Crystal Ware 60%
Gifts and clocks 55%
Food Retailers 45%
As stated though, with special offers etc. this can vary greatly (and obviously will depend on the particular sector)
Edited by timja on Thursday 29th March 22:58
justinp1 said:
glassman said:
...At what point does mark-up become excessive (beyond reason)?...
The above is the most important point.
The only answer is when people stop paying it!
Exactly! - Really depends on the item though, many customers may have no idea how much things cost to produce inparticular in bulk! - I'm sure many FMCG's arriving in containers from overseas have huge markups. I know one company for example that sourced some fleeces from china that previously were made in UK - Cost them £4 each delivered, sold them for £20!!
I know my mum's company selling posh gifts/home furnishings etc, mark up at approx 180%!!! (that I believe is on most products). That said they are only stores and pitch on a boutique basis - basically working on the basis it is excessive when people stop paying - except that they are targetting those who are trying to keep up with the joneses.
muppetdave said:
I know my mum's company selling posh gifts/home furnishings etc, mark up at approx 180%!!! (that I believe is on most products). That said they are only stores and pitch on a boutique basis - basically working on the basis it is excessive when people stop paying - except that they are targetting those who are trying to keep up with the joneses.
Exactly.
What is the intrinsic value of a Sainsburies dinner set, and what is their mark up?
What is the intrinsic value of a Gold rimmed Versace dinner set, and what is their mark up?
The only factor is what people are prepared to pay!
My companies markup factor is between 1500 and 2500%
I *could* charge a cheaper price, but I am not a charity - I am a businessman and we have a free market!
I think it depends on what you are selling and the value of the product, market you are in and the volume you are shifting.
We sell software, our gross margin is healthy (more than 10% and less than 50%), our orders range from £20k to £500k and we aim for orders 10 a year.
Selling penny chews at 500% margin is a different ball game altogether.
Swings and roundabouts.
We sell software, our gross margin is healthy (more than 10% and less than 50%), our orders range from £20k to £500k and we aim for orders 10 a year.
Selling penny chews at 500% margin is a different ball game altogether.
Swings and roundabouts.
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