Community Chat

[Kimnola]

I'm not an educated woman. Can someone generally tell me how retailers determine their shelf price?
Is it a percentage value from distributor? Thanks for you information.

[LTT1]

@Kimnola 

It used to be a 100% markup on clothing. So, if the wholesale price was $50, you would pay $100.

Jewelry was a 500% markup, I had heard. I used to work in clothing retail as a teen.

[Kimnola]

@LTT1

Holy Moly!!!!!! Thanks so much for the information!

[froggy]

I used to work at a fabric store - the mark-up was 100%.

[millieshops]

@KimnolaThe simple answer is that they add up all their expenses and try to figure out how to make a profit after all of them get paid.  So for QVC, they have the expense of the merchandise, of their TV productions with all the studios, the salaries on and off cameta, all their buyers, their warehouses, their insurances, their advertising. their corporate salaries and offices, ans there's more!  

It's virtually impossible for us as consumers to figure out because we don't have access to all that information and with a company like QVC which sells a huge variety of products, each kind has a different cost overall and each kind also had a diffeent possible return.

I grew up in a retail family, worked retail at various times in my life, and I never try to figure how what a company SHOULD charge me.  When I need or want something I do what I can which is comparison shop to find the best value for me at the time I want to buy. 

I think comparison shopping was easier years ago when there was no Internet just because the choices were so much more limited,  Now sometimes there's just too much choice, too many sites to check sometimes, but for me it's still the only way I feel I can use my money wisely.  I don't even try to save the same percentages on everything just as the retailers don't profit the same percentage on everything.  

Most of all, though, I've decided my best "tool" is not to want what I really will never be able to afford -  and that keeps me sane!

[Zhills]

Their investors are also guaranteed a certain return on the stock.  That's also included!

If I really want it and I can afford to buy it and enjoy it; it is a good deal for me!

[pigletsmom]

Many drugstore items are around 20% but greeting cards are usually 100% profit.

[millieshops]

@ZhillsThe investors do expect a return -  Is it really guaranteed?  I'm thinking one of the reasons for companies going into bankruptcy is that too many investors back out when the profits disappear.

[Zhills]

I believe you are correct.  That is why some companies file for bankruptcy with a chance to recover profits.  

[sunshine45]

in general, for clothing and accessories...... in a single store, small local chain,  or boutique type stores....

i buy a pallet of sizes of a shirt for $20 per shirt.

i sell them in the store for $40 per shirt.

when i mark it down i am still making money on each item, until i mark it down more than 50%. my goal obviously is to sell as many as i can prior to a 50% markdown.