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buying a product then selling. How much profit

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  • 01-01-2019 8:33pm
    #1
    kingbhome
    Registered Users Posts: 518 ✭✭✭


    How much profit should one be making on selling some items. If a client was buying 100k with the materials through my business, what profit margin should i put on it.


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    #2
    troyzer
    Registered Users Posts: 6,200 ✭✭✭troyzer


    That is probably the vaguest question I've ever seen on boards.


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    #3
    ted1
    Registered Users Posts: 23,535 ✭✭✭✭ted1


    kingbhome wrote: »
    How much profit should one be making on selling some items. If a client was buying 100k with the materials through my business, what profit margin should i put on it.
    Depends on the product, risk, volume etc


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    #4
    NSAman
    Registered Users Posts: 3,437 ✭✭✭NSAman


    kingbhome wrote: »
    How much profit should one be making on selling some items. If a client was buying 100k with the materials through my business, what profit margin should i put on it.

    How long is a piece of string.

    Depends on cost of those materials if you purchasing them. If you are not purchasing them, there is the cost of production etc.


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    #5
    Water John
    Registered Users Posts: 21,453 ✭✭✭✭Water John


    All depends on the market area, competition, manufacturing, wholesale. Are you saying mark up from which you deduct all your costs and leave a profit?


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    #6
    RossieMan
    Registered Users Posts: 6,766 ✭✭✭RossieMan


    This sounds like someone buying ****e from China and trying to flog it on adverts.

    If it is, please don't.


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    #7
    troyzer
    Registered Users Posts: 6,200 ✭✭✭troyzer


    RossieMan wrote: »
    This sounds like someone buying ****e from China and trying to flog it on adverts.

    If it is, please don't.

    Yep.


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    #8
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    RossieMan wrote: »
    This sounds like someone buying ****e from China and trying to flog it on adverts.

    If it is, please don't.

    Sounds exactly like this. I guess people will happily throw 100k at anything at the moment!


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    #9
    onedmc
    Registered Users Posts: 455 ✭✭onedmc


    Yes very vague question but the general markup starts at 100% DAP costs. By DAP I mean the cost at deivery. If you buy somthing for 90 and costs you 10 to get it shipped to the shop you sell it for 250 which is roughly 100% (Vat Math included)

    The margin goes up for products that have high return/damage or take long to sell. For example cloths is about 400%. Less if the item sells quickly (H&M Pennys) more it it stays in the shop longer.

    The margin goes down again if the ticket prices is high and/or you can warehouse sell, so furniture is back to 100%.Down further if seller can sell before they commit to purchase, Car are example.

    For FMCG the margin is significantly smaller and the best way to price FMCG is to put a shelf cost prices. The more often the shelf area needs to be replinished that lowers the margin. Competition and loss leaders comes into effect here so we can see margins as low as 10% here.

    Electrical I have no idea.

    Buying from china FOB price is generally 10% to 15% of Sale price. Transport, breakages, replishment stock and possible Tariff all add to overhaed.

    And thats how long a piece of string is.


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