Retail Markups

[faust]

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...

 

[softgrey]

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...

 

[Missy44x]

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

 

[purechris]

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.

 

[faust]

Originally posted by purechris@Feb 24th, 2004 - 1:27 pm
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.

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).

 

[purechris]

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.

 

[softgrey]

Originally posted by purechris@Feb 24th, 2004 - 1:51 pm
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.

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?

 

[Leikochan]

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.

 

[Mocean]

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.

 

[leyla m.]

from my experience and studies its around 2.7 times more

 

[metal-on-metal]

What is Balenciaga's and Dior Homme's markup? 8000%?

 

[leyla m.]

Originally posted by chickonspeed@Mar 24th, 2004 - 6:01 pm
What is Balenciaga's and Dior Homme's markup? 8000%?

hahha good one CHICK.
actually those mark up theories are nonsense... cause there is so much more thats added on top of the mark up

 

[As You Like It]

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.

 

[starz1]

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%?

 

[PrinceOfCats]

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.