2006-08-24 06:07:42 · 5 answers · asked by anne 2 in Food & Drink ➔ Other - Food & Drink
This can be tricky. "Keystoning" is the method of setting your price at double your cost; this is somewhat the traditional method of price setting and doesn't take into account either elite markets or volume sales. If you have a "gourmet" product for an elite market, you can set the price at 300% or more of what it cost you; the risk, then, of course, is that sales will be reduced as some folks will still experience sticker shock. On the other hand, volume sales go for a low profit margin that they maximize by moving as much product as possible. This only works, however, if you have the marketing in place to bring hordes of humanity to your store(real or online) to make a purchase. Your mark up in that case might only be 130% or so of your cost, in which case you are going to have to move A LOT of product to get rich any time soon.
I have always preferred keystoning as it is simple, sweet, and relatively balanced between meeting my needs for profit with my customers' needs for affordability.
2006-08-24 06:16:51 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Why would not they take it decrease back? in case you purchased the prolonged assure, it truly is' your fee ticket. If the blu-rays all seem to have this problem, why might want to you conflict through for it. call up the customer care or service branch and discover out what they'll do in case you deliver it decrease back to modify or fix, or will they grant you with a prorated rebate to be utilized on yet another television.
2016-11-27 19:10:50 · answer #2 · answered by ? 4 · 0⤊ 0⤋
My sister used to work in retail, and their rule was 100% mark-up from cost. So, a bottle of shampoo that cost her salon $7.00 to buy from the vendor was sold for $14.00.
As a business owner myself (a website design firm), I'd recommend scoping out what some of your competitors are charging for similar products. I'd also recommend reading books such as "Small Business for Dummies" (don't laugh, it's a very useful book), which offers hints on pricing your products, among many other things.
Most importantly - do your research! Know your market & products! Take care & Good luck! : )
2006-08-24 07:40:31 · answer #3 · answered by livysmom27 5 · 0⤊ 1⤋
Depends on your profit margin - what you want to make.
2006-08-24 06:11:18 · answer #4 · answered by frankmilano610 6 · 0⤊ 1⤋
you have to buy in mass quanities. think about the price difference in shopping at walmart and sams times a hundred
2006-08-24 06:14:21 · answer #5 · answered by Marianne 2 · 0⤊ 2⤋