What is the approximate markup of natural health products sold by health stores?
Posted by admin on Dec 25, 2009
I’m starting a small wholesling business (1 product at a time).
If the product has a retail sale price of £10-12, what would the retail store be willing to pay for it?
As a general rule, purchase cost less than 1/2 retail .. in this case less than £5 – £6 …
.. however in the ‘luxury’ / ‘health’ market, markups can easily be x10 (so £1 to £1.20).
Go look in any ‘Body Shop’ store .. consider the large number of staff ‘hanging around’ (they never seem to be doing anything, but they all have to be paid) .. consider the wide open spaces, fancy packaging of the products (packaging has to be paid for, as do the workers who (manually) wrap the product) .. plainly this has to be a ‘high end’ business (high mark-ups)
Then contrast with eg. Woolworth’s .. see the goods plied high on shelves crammed together with almost zero isle space and one or two tills with staff (if you can find any) working their b*lls off .. plainly this is the low end (low mark-up) business …
As a general rule, purchase cost less than 1/2 retail .. in this case less than £5 – £6 …
.. however in the ‘luxury’ / ‘health’ market, markups can easily be x10 (so £1 to £1.20).
Go look in any ‘Body Shop’ store .. consider the large number of staff ‘hanging around’ (they never seem to be doing anything, but they all have to be paid) .. consider the wide open spaces, fancy packaging of the products (packaging has to be paid for, as do the workers who (manually) wrap the product) .. plainly this has to be a ‘high end’ business (high mark-ups)
Then contrast with eg. Woolworth’s .. see the goods plied high on shelves crammed together with almost zero isle space and one or two tills with staff (if you can find any) working their b*lls off .. plainly this is the low end (low mark-up) business …
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