How Much Should Be Your Markup Cost

[nomad]

When you are setting prices for your products, how much should be your markup cost? In other words, how much profit margin would you have on the products you are selling? I hear that luxury brands can add a 1000 percent markup cost. However, for me, 10-30 percent is the ideal markup cost. I start with 10 percent margin and raise upto 30 percent.

 

[Heatman]

It is very necessary for someone not to be too greedy when they are trying to add the profit margin they expect to make from their products or their services. This is because it will most likely scare your clients away if they get better offer from your competitors.

 

[Bisolami]

It is very necessary for someone not to be too greedy when they are trying to add the profit margin they expect to make from their products or their services. This is because it will most likely scare your clients away if they get better offer from your competitors.

Some people are very greedy and that is why customers do not like to patronize them because their goods are too expensive

 

[relcap23]

It depends on the products. If product comes from scratch you should add on all the cost plus a profit margin of at least 20 percent. If products are purchased and you only trade you have to determine if the product is fast moving and you can set a lesser profit margin. .

 

[Niyi Briggs]

I think 30% is reasonable. If I use #1000 to finish a product and take it to the market. I would sell #1300. The secret in business is not about margin. It is about turnover.

 

[Springtime]

That depends on the cost of production, your overhead costs, the market demand and the profit margin you aim to achieve. I would say 20-35% mark up is a reasonable range.

 

[cherry123]

Some sellers are not just it because their goods are too expensive and metkup margin very high. They are very greedy and that is why they sell less a day too

 

[IB D]

Some sellers are not just it because their goods are too expensive and metkup margin very high. They are very greedy and that is why they sell less a day too

There are some products that you might have to add a profit margin of up to 100%. It depends on the kind of products.

 

[cherry123]

Well, for me adding a profit margin of up to 100% shows greed. Why would a good business do that. you want to take a 100% profit margin from all buyers. That's too much

 

[Shavkat]

For my online shop, most of the items were marked up from 20% to 50%. It depends how in-demand they are in sales. I sometimes based on how the other shops do their prices.

 

[Stardom22]

As far as I concerned the profit margins depend on the type of the products dealt with. Most fast moving items like the basic food items have a very small profit margin of less than 10% while luxury items like cars have a very high profit margin like above 100%

 

[cherry123]

You are right I have noticed that most fast moving items have a very small profit margin of less than 10% while luxury items have a very high profit margin.