Scott Bennett wrote:A 220% markup? In other words, $10 wholesale price, $32 retail? Maybe somewhere, but I've never seen it. Retail pricing is more commonly expressed in terms of margin, and typical retail margins are 45-55%. 50% margin is sort of the traditional standard, and is often called "keystone". A 50% margin means half of the retail sales price is gross profit, and half is the wholesale cost of goods. That's the equivalent of a 100% markup. 55% margin is 55% gross profit, and so on.
The only time I've ever seen a higher margin than low 50s is when a retailer is sourcing the product directly. In that case they can keep some (or all) of what would have been the wholesaler/importer's margin. This is for furniture, I have no idea what typical margins are in lighting, accessories, etc.
heh, I've never been good with math, $10 wholesale ---> $22 retail is what i meant. but that would work out at about you stated 55%, so maybe i'm just expressing the same thing, but in the wrong way. Some of these thing I've been learning from my signifigant other, who works in the childrens footwear business, so similiar situations, but maybe a different lexicon