What is the typical mark up from wholesale to retail?
Posted on 03. Jan, 2009 by MJS in Wholesale Q & A
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!
4 Comments
flip4449
04. Jan, 2009
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.
voandginger
05. Jan, 2009
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%.
pknutson_sws
05. Jan, 2009
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%.
ASM Goods Support
07. Jan, 2009
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…
Leave a reply