Retail Markups

Discussion in 'Shop Till You Drop' started by faust, Feb 24, 2004.

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  1. faust

    faust New Member

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    How much do designer boutiques/department stores mark up what they get from wholesalers? I was told a while ago that a standard markup is around 110%, but it seems more these days...
     
  2. softgrey

    softgrey flaunt the imperfection

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    it's a good question...110-115% is the standard, but I agree that it seems higher these days...we may need Lena to answer this one for us... ;)
     
  3. Missy44x

    Missy44x New Member

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    Wow..thats pretty huge.. Unless I am filthy rich I would avoid buying into that whole "scam"...geez 110% :wacko:
     
  4. purechris

    purechris no photos, no photos

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    It really depends on the brand. Typically wholesale is multiplied by 2.08-2.2 (cost is 100, retail is 220). This allows the retailer to absorb the cost of shipping and some of the discounts. Some of the bigger brands are much higher. For example, when I used to sell D&G it was a suggested 2.5 markup (cost 100, retail 250), sometimes more on their "margin builder" merchandise. As a merchant, I don't see this as a "scam". If you consider that you usually don't sell all the merchandise at full retail, then there's rent, payroll, taxes, insurance, etc. It's just another business. Think about the difference between the retail cost of a bottle of wine at the store and what you pay at a restaraunt. That seems like more of a "scam" to me.
     
  5. faust

    faust New Member

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    I am certainly not saying that it's a scam, I was asking for purely informative purposes (just curious at what sale point the store actually starts losing money).
     
  6. purechris

    purechris no photos, no photos

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    Once the merchandise hits 50% off, the store is probably breaking even. After that, it can be a loss. That's why retail is such a tricky business. I understand your curiosity, and you didn't say it was a scam.
    Some stores will mark things up higher if they can get away with it. It seems that this has become more difficult with the "global economy" we live in. That's why many companies have a suggested retail price. When a company has it's own website selling it's merchandise retail, it's wholesale customers have to keep in line with it. If you don't, people think you are trying to rip them off. Once a customer gets that feeling, they loose trust in your business. After that, you'll defintiely start to loose money.
     
  7. softgrey

    softgrey flaunt the imperfection

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    hey pure-chris-did you get my pm ages ago? I had trouble sending it so maybe you never got it...

    what brands does your store carry? :flower:
     
  8. Leikochan

    Leikochan New Member

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    Ann Taylor's markup is about 600% Based on the sale prices at Banana Republic, I'd guess that GAP corporation uses a similar scale.
     
  9. Mocean

    Mocean New Member

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    Companies like Gap, H&M, Zara etc all have less markup than for example Armani, the more the brand is considered "luxury" the higher the markup.
     
  10. leyla m.

    leyla m. New Member

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    from my experience and studies its around 2.7 times more :ninja:
     
  11. metal-on-metal

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    What is Balenciaga's and Dior Homme's markup? 8000%?
     
  12. leyla m.

    leyla m. New Member

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    hahha good one CHICK. :lol:
    actually those mark up theories are nonsense... cause there is so much more thats added on top of the mark up :wacko:
     
  13. As You Like It

    As You Like It Proponent of Plaid

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    This thread actually kind of helps me...I have just opened an account with a fabric wholesaler, and I was trying to figure out how to charge for markup on materials. Granted, I am not going to be marking up 200% on just the bare fabric, since there is also the cost of my labor, but it gives me a vague idea of where to start.
     
  14. starz1

    starz1 New Member

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    Hi, so for all of the higher end stores here in Toronto like Holt Renfrew, TNT Blu, Over The Rainbow, etc. all have retail markups of like 277%, then what would the markup % of regular retail stores like West 49, Sportchek, etc.? Like the regular 115%?
     
  15. PrinceOfCats

    PrinceOfCats Naturellement pulpeuse

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    This thread is a bit of a blast from the past. Just out of interest, why do Brown's mark up CDG more than Dover Street Market? Surely, anyone with any sense is not going to pay an extra £50-100 when the stores are only a few streets apart.
     

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