For example widget costs distributor $10 to buy, what's the dollar amount approximately or what percentage over that would they charge the retail buyers?
2006-10-12 12:34:06 · 2 answers · asked by roomwithaview 3 in Business & Finance ➔ Small Business
it really depends on several things - especially competition and the customer's willingness to pay. if no one sells widgets, you may have a monopoly and can charge a lot more. yadda yadda yadda.
there's also the concept of loss leaders. you can sell products at losses in hopes that your customers buy another one of your products with a fatter margin.
2006-10-12 12:44:41 · answer #1 · answered by loveholio 5 · 0⤊ 0⤋
It depends on the market, product, and production.
Some products can be produced and retail at a mark-up of 100% or more.
On average most companies make a 5% net income. For every $1 of revenue the average company makes five cents profit after paying expenses & taxes. A 10% profit is doing well & 15% is doing very well.
Keep this in mind.
2006-10-12 20:17:04 · answer #2 · answered by JLMelvin 5 · 0⤊ 0⤋