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
Did you like this article? Share it with your favourite social network.