How much should you Mark up your products?

ronan45

Is there a standard percentage that one would sell their inventory at to make a fair profit WITHOUT ripping people off. I sell some parts for household equipment and repair them. With enough time mooching about on the internet one could track down how much I bought the part for more or less...
Also what sort of discount should one sell second hand parts at from the RRP price, any ideas?
I was thinking 25% myself. The quanitites are quite low i sell so I assume I would increase my margin slightly.
I am looking to make a fair profit and DEFINITLY not have people think im a ripp off merchant lol

Bandara

ronan45 wrote: »

Is there a standard percentage that one would sell their inventory at to make a fair profit WITHOUT ripping people off. I sell some parts for household equipment and repair them. With enough time mooching about on the internet one could track down how much I bought the part for more or less...
Also what sort of discount should one sell second hand parts at from the RRP price, any ideas?
I was thinking 25% myself. The quanitites are quite low i sell so I assume I would increase my margin slightly.
I am looking to make a fair profit and DEFINITLY not have people think im a ripp off merchant lol

Hi Ronan

Find this a bit of an odd post tbh (absolutely no offence meant)

Don't fell guilty about making yourself as big a profit as you can, your in business thats the goal !

You price your products at the largest margin possible while taking into account what people will pay for them / and ensuring your costs are covered and your earning enough.

Also on the point that people can go and look online and see what your paying, so what? Let them, I'd suggest that its a very small percentage who will do this.

Margin wise its all based on your costs but I'd hazard a guess that approx 45-55% is the minimum that you'd start from.

Dont apologise for making money, no one will thank you no matter what you charge, they will buy because they are willing to meet your price. Bear in mind your repeat business is likely to be quite low as a result of the type of business.

Regards
HT

ronan45

Hammertime wrote: »

Hi Ronan

Find this a bit of an odd post tbh (absolutely no offence meant)

Don't fell guilty about making yourself as big a profit as you can, your in business thats the goal !

You price your products at the largest margin possible while taking into account what people will pay for them / and ensuring your costs are covered and your earning enough.

Also on the point that people can go and look online and see what your paying, so what? Let them, I'd suggest that its a very small percentage who will do this.

Margin wise its all based on your costs but I'd hazard a guess that approx 45-55% is the minimum that you'd start from.

Dont apologise for making money, no one will thank you no matter what you charge, they will buy because they are willing to meet your price. Bear in mind your repeat business is likely to be quite low as a result of the type of business.

Regards
HT

Cheers Hammer, I should have mentioned its not a "Business" per say its more a back yard operation lol. So my costs are little to nothing. Its just a side line thing i have going (not in anyway Illegal I might add!) Ill take your advice on board. Thank you

DubTony

Something to consider is that if the business becomes something more than a sideline backyard thing, you'll probably rent premises and hire people. The last thing you want at that point is to have to increase your prices to cover the extra costs. So starting from as high a price point as the market will accept is obviously the way to go. Compare your prices with any competitors you may have and go from there.