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Distributors Margin?

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  • 11-11-2011 10:29am
    #1
    Closed Accounts Posts: 54 ✭✭


    I am selling into a market where the retailers margin is 35%, what margin should a distributor be looking to achieve based on this 25-30%??


Comments

  • Registered Users Posts: 68 ✭✭Lucky Dub


    30% is pretty much the norm, do you deliver the goods?


  • Closed Accounts Posts: 54 ✭✭usainbolt


    Delivered by courier at retailers expense.


  • Registered Users Posts: 68 ✭✭Lucky Dub


    Rare for the retailer to pay the carriage?

    Are they a big retailer?


  • Closed Accounts Posts: 1,530 ✭✭✭TheInquisitor


    20% on sales is normally the minimum for a distributor. Get your minimum order at a good value is key.

    I know of distributors that go as low as 10-15% but to compensate they have higher minimum orders of £3000+.

    Out of 130 suppliers, we pay carriage to only 1 person. Carriage is always built into the price. Free delivery over €300 of an order for example!


  • Closed Accounts Posts: 2 oneis


    Does anyone know what the retailer margin would be on Adidas and Nike clothing? I am in the process of setting pricing for a range I am looking to import and need to get an idea of the level of margin that retailers would get for similar items of clothing.


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  • Closed Accounts Posts: 1,530 ✭✭✭TheInquisitor


    What they get from adidas might be 30%. What they would expect to get from your would be closer to 60% margin. Adidas and Nike spend billions building their brands and unless you intend doing the same over decades then don't expect to ask for high prices!


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