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Thread: Retail / Wholesale Price - Please help!

  1. #11
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    There is no "standard" mark-up, it depends on the product as well as where is is sold. I sell quite a lot of shoes, and even there I get different mark ups with different brands. But if your product is aimed at the chains and supermarkets, I would have thought that it's a decent mark up, but to be safe you need to find the cost price of your closest competitor and see how you stack up.

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  3. #12
    Email problem MichaelB's Avatar
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    Yes I concur with Papsak above. You should also be determining your retail selling price based on competitors for the same product in your area. If you do not have any competition, you call the shots! Ultimately, your profitability is not calculated by the markup you think you should be taking, things like industry norms for example, could be restrictive on what you can be asking. Your fixed & variable overheads need to be considered, relative to your expected turnover as a whole for a month. If collectively, your markups average a good enough return for you to pay your overheads & put a good bundle of cash in your pocket every month, and your customers are happy to pay your prices, then you've hit a winning recipe.

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  5. #13
    Bronze Member robinsonwang's Avatar
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    Quote Originally Posted by Wolf View Post
    This is a dummy question and it might sound stupid, but since I am not South African and have no experience in the retail market I REALLY need your help.

    MSRP of my product: R174,56 + VAT = R199
    Wholesale price: R117 + VAT = 133,38

    Huge suppliers like UPD get 15-20% discount on the wholesale price depending on the quantity.

    My question: Is the wholesale price of 117 + VAT acceptable? Too high? Too low?

    Is R57,56 profit / 49,20% Markup / 32,98% Gross Margine acceptable for a retailer?

    Please help me out. I have no clue how retailers calculate.

    Thanks
    The calculation of profit also depends on the turnover rate of input. We are a wholesaler, we always suggest our distributors to keep stock for the productions in good demand and less popular productions for dropship. For Internet business, 15%-20% Gross margin is acceptable, sorry, I'm talk about the consumer's electronics and gadgets.

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