Furniture studio selling to retail

Hi guys

I am setting myself up as a designer and producer of contemporary furniture, and i have a number of retail stores looking to stock my pieces. My problem is that I don’t know much about the business side of things. I was wondering if you guys could offer me some advice or point me in the right direction.

1/ How do a price my products. Is there a standard figure you multiply you manufacturing costs by? I have heard 4.5 mentioned. I Don’t actually make the products myself, the components are outsourced and then assembled and packaged, would this mean I shouldn’t expect to make as much of a margin

2/How will the retail store mark up my prices? again I have been told that most add 50%, is this your experience?

any other advice or suggestions will be really gratefully received


50 pts is a nice cushion. have the retailers dictated whay they wish to sell it for? what kind of volume can your sources handle? will your quality remain? what are your overheads? if you increase your volume, can you negotiate better pricing with your vendors? so forth and so on.