Markup for importers and retailers

kikel

Hey All,
I've found a product i'd like to import and try and resell. (only at the thinking stage right now)
I know how much each unit would cost me and the average market value of such a product. Mine is a variation of current product and i think would sell well.
I can buy the product for a 1/3 of what I think is a good selling price compared to whats on the market. Is this Good?

What pecentage of the remainder could i hope for? And how much for the retailer?

New to the business world so, anything I've missed?

Thanks in advance

K

aman

It may depend on the type of product & the type of retailer you are going to put it into.
Also you say you can buy the product for approx 1/3 of the retail price, but have you taken the costs of importation into account. You have to consider possibly the following : shipping costs, import duty (if importing from outside the EU), VAT. Is it such a good deal when these are taken into consideration?
Do you require certification that it complies to Irish standards (for e.g. an electrical product)?
There are a lot of hidden pitfalls in importation - just make sure you research it well.

onedmc

It does of course depend on the product but the general markup accross europe for products is a selling prices of 2.5 times gross cost.

So (wholesale Price + delivery + any damage losses + depreciation + storage/keep costs or unsellable product costs) * 2 then add VAT.

This will work out at 2.5 times wholesale for most products. A lower margin is acceptable in high product turnover situations which can be anything as low as 1.7 for certain food stuffs or as high as 5 time for items that dont shift like expensive handbags.

This dosnt take into ccount discounting etc

onedmc

Oh I dont know the markup for wholesalers as I have never been one. It has to be alot less than a retailer as the cost base in far lower.

kikel

Thanks, alot to think about, I never taught about Irish standards. Don't see it as an issue but it needs to be checked out.