What is a good margin of profit?
Post 1 of 5
I am importing electronic clocks from China. I pay 15$ for CIF of 500 units.
Now I am asking myself wich price should I give to my buyer. 18$,20$,25$?? Considering the clock is in a "niche" because it is a new modern design, I think it could be sold at 50$ retail... Is a 100% profit enough for a furniture retailer?
Now I am asking myself wich price should I give to my buyer. 18$,20$,25$?? Considering the clock is in a "niche" because it is a new modern design, I think it could be sold at 50$ retail... Is a 100% profit enough for a furniture retailer?
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17 Apr 2008 11:38
Post 2 of 5
Quoting from [mtltrader]:
I am importing electronic clocks from China. I pay 15$ for CIF of 500 units.
Now I am asking myself wich price should I give to my buyer. 18$,20$,25$?? Considering the clock is in a "niche" because it is a new modern design, I think it could be sold at 50$ retail... Is a 100% profit enough for a furniture retailer?
As your clock is in a niche, 100% profit is enough. For sure, buyer will return for more.
![[em15]](http://img.alibaba.com/images/eng/style/icon/emoticons_wish_you_wealth.gif){kind=icon}
21 Apr 2008 00:57
Post 3 of 5
Quoting from [mtltrader]:
I am importing electronic clocks from China. I pay 15$ for CIF of 500 units.
Now I am asking myself wich price should I give to my buyer. 18$,20$,25$?? Considering the clock is in a "niche" because it is a new modern design, I think it could be sold at 50$ retail... Is a 100% profit enough for a furniture retailer?
You have to know the rule of thum in wholesale business, at least you have to earn double from your landed cost. If the buyer can buy all of your stocks you have to give them better deal so as long as you can earn 1.7-1.8 that would be good enough.
21 Apr 2008 10:53
Post 4 of 5
Great answers from both of you. Very good advices.
Thanks.
Thanks.
23 Apr 2008 21:10
Post 5 of 5
Quoting from [mtltrader]:
I am importing electronic clocks from China. I pay 15$ for CIF of 500 units.
Now I am asking myself wich price should I give to my buyer. 18$,20$,25$?? Considering the clock is in a "niche" because it is a new modern design, I think it could be sold at 50$ retail... Is a 100% profit enough for a furniture retailer?
Hi there,
I have been doing retail business for years. If you can make a profit of 100% then it is a good margin profit i would say
Regards
Tom Law
24 Apr 2008 00:16
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