I would like to know what the normal mark up percentage is if I buy something wholesale and then sell it retail. Also what is the typical percentage of mark up between actual manufacturing cost and wholesale cost? Thanks!
It entirely depends on the product and how it is distributed. Just a few examples, raw materials to make jewelry (gold) is sold at market price. The manufacturer sells to the retailer for a set price based on the number of units he agrees to buy over a year’s time. The more he buys and longer the contract, the less he pays. The markup range for jewelry at a place like Target is anywhere from 300 – 1000%. Yes…1000%! When you buy a ring from a jeweler for $10,000, the actual material value is only about $400-$1000, depending on the type, which is a 1000-2500% markup.
Overall, a retailer, combining in all their sales, is considered to be doing well if their cost is under 30%.
October 31st, 2009 at 3:17 pm
It’s all different. Jewelry is about 85% mark up, followed by furniture. Groceries have a low mark up, so they have to do high volume.
References :
October 31st, 2009 at 3:23 pm
Depends on the commodity. Take a VO and Ginger Ale at a bar will cost $6.00. If you buy and make it yourself, it will cost pennies.
Clothing is around 100% mark up in small shops, cars are marked up with different dealer incentives and an average of 20%.
References :
October 31st, 2009 at 4:03 pm
It entirely depends on the product and how it is distributed. Just a few examples, raw materials to make jewelry (gold) is sold at market price. The manufacturer sells to the retailer for a set price based on the number of units he agrees to buy over a year’s time. The more he buys and longer the contract, the less he pays. The markup range for jewelry at a place like Target is anywhere from 300 – 1000%. Yes…1000%! When you buy a ring from a jeweler for $10,000, the actual material value is only about $400-$1000, depending on the type, which is a 1000-2500% markup.
Overall, a retailer, combining in all their sales, is considered to be doing well if their cost is under 30%.
References :
October 31st, 2009 at 4:33 pm
It all depends on what you are selling & what the market is…we sell cheap as we dont like to loose customers, also; if our clients contact us for a quote; we always quote it cheaper than shown online with free shipping sometimes.
So it all depends…
http://www.asmgoods.com
References :