What is the standard markup a retail store will add to the wholesale price of an item?

Question

As an example - a gift shop sells decorated candles. If they paid $5 for each candle wholesale, how dow they determine how much to sell them for retail?

Answer 1

Although it can vary greatly, keystone (or double) is the norm. Therefore a $5 candle would cost the consumer $10. Sometimes its higher. When you take into consideration the cost of owning a retail store add to that shipping and such, 3X is not uncommon. There is also the MSRP (Manufacturer Suggested Retail Price) to consider. The maker can determine how much you are to charge for the item. I have seen retail up as much as 5X and in some cases even higher.

Answer 2

They have to consider all the logistics of the product + manpower + ad costs + shelf costs. All of those things costs retailers money. I dont know much about candles but here's a sample.

A Big Mac costs $0.10 as an actual product. Depending on what area you are buying it from can cost from as little as $1.19 to $1.59.

A CD costs $3.00 "at cost", but can sell form $9.00 to $17.00

Answer 3

I would guess that the retail would be at least $9.99 and possibly higher for a desirable product. Once the sales begin to slow on that item, it would likely be put on sale at 25% off with increasing discounts until it sells.

Answer 4

It all depends on what they want to make. If they price it too high, then they won't sell. If they price them too low, then they don't make much of a profit. Most usually mark up between 10 to 25 percent. Well known retailers can usually ask for more, just because of their name.

Answer 5

ive seen all kinds of mark ups generally its what they believe they can get for the item in their market but mostly 2 to 3 times is about the average it really depends on demand for the item and how long they are willing to hold onto it before it sells

Answer 6

probably around twice what they originally paid; so if they paid $5, they'd sell it for $15.