Community Chat

[JBKO]

I used to work in a store where the jewelry was marked up 500%. I also remember reading in a skincare book that a skin cream that sells for $21 may be worth as little as $3. Of course people need to get paid as do taxes explaining why things get marked up. What have you all heard? Thank you.

[hckynut]

(Thread Title)

There is no such thing as average markup. Now if one wanted to consider 1% up to over 200%?  Many electronics are even higher than 200%. If someone tells me average markup? I tell them "who you trying to ®®®®"?

hnj

[Mz iMac]

I plan on purchasing an auto by the end of the year.  In doing my research I found the following regarding auto mark ups....

"The average car dealer markup fee is typically between 2-5%. This number represents the amount of money the dealer automatically raises the price to ensure a profit. Note that this is not the final sale price, which is often higher. For example: a car comes in at dealer invoice (what the dealer pays for it) of $20,000. The dealer marks it up 2-5% (this is their listed invoice price) and then assigns an MSRP price on it that is even higher. Should you negotiate the dealer down to invoice, they still make a 2-5% profit on the vehicle."

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[Goldengate8361]

I think the right answer is that "it depends" on the type of product, brand, etc. Capitalism is great; the laws of supply and demand work. I would never frown on a seller making as high of a profit margin as the market will bear. As consumers/buyers, we can buy or not buy.

[september]

I once worked in a catalog showroom (does anyone remember these?)  I rotated through several departments, but clearly, jewelry was where the $$$ were made.  The owner checked in on us often, and asked "Did you sell any diamonds today?"

[chrystaltree]

There is absolutely no answer to that question because the concept of average markup does not exist. 

[itiswhatitis]

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@Goldengate8361 wrote:

I think the right answer is that "it depends" on the type of product, brand, etc. Capitalism is great; the laws of supply and demand work. I would never frown on a seller making as high of a profit margin as the market will bear. As consumers/buyers, we can buy or not buy.

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I do when it comes to price gouging.  I don't like price gouging in times of natural disasters and such.  One thing that comes to mind is gas.  When Hurricane Sandy hit the Northeast, and people were barely making it alive the price for gas went throug the roof.

Nothing wrong with the Capitalism model, except when greed has a tremendous affect on the greater good.

[hckynut]

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@Mz iMac wrote:

I plan on purchasing an auto by the end of the year.  In doing my research I found the following regarding auto mark ups....

"The average car dealer markup fee is typically between 2-5%. This number represents the amount of money the dealer automatically raises the price to ensure a profit. Note that this is not the final sale price, which is often higher. For example: a car comes in at dealer invoice (what the dealer pays for it) of $20,000.

The dealer marks it up 2-5% (this is their listed invoice price) and then assigns an MSRP price on it that is even higher. Should you negotiate the dealer down to invoice, they still make a 2-5% profit on the vehicle.

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@Mz iMac

A friend of mine owned a big GM dealership for over 25 years. Yes there is MSRP and invoice prices, BUT!  There is something most buyers do not know about a dealers profit on a motor vehicle they sell. It can add up to well over double digit profit %  over what you mentioned in your last paragraph.

I have bought and ordered many new vehicles and I never paid more where the dealer ever made over $100 actual profit. Walked out of many dealerships when they wouldn't meet my price. A few called me back in a day or 2 and said they would my price, but I told most them I already ordered my vehicle from another dealer.

Went with family members and a few friends that were shopping for new vehicles. Just loved the "wheelin and dealin" with salesmen(at that times),  had a ball and saved them into the 4 figure $$$$.

hckynut(john)

[sunshine45]

when i was managing a boutique clothing store our markup was pretty much 100% on everything......clothing and accessories.

used cars can be more or less than 100%....depending on how they are obtained.

[shoekitty]

Most items, like clothing, toys and such are keystoned.  That means if you buy it for 10 bucks , you sell for 20.  Some add a percentage or so over that to allow for markdowns, and items that are sold for less than keystone.

Jewelry and cosmetics is about 500%. Say they buy a cream for 20 bucks, they sell for 100.

IDK about electronics.

I know jewelry has such a high mark up because it is always on sale.  That allows for those 30, 40 and 50% sales!