Do you know How to discover the mark up

4 replies
Lets say you want to discover the mark up for a luxury watch manufacturer, is there anywhere you could go to find out the rough production cost compared to the wholesale /retail if direct price and therefore the markup.
Didnt know if there may be some search engine type site that does this or something similar?

Ditto for the retailers, the mark up from wholesale to retail and this sint just for luxury watches, that was just one example, albeit a good one
#discover #mark
  • Profile picture of the author jimbo13
    Well I'll use a £300 iPad as an example.

    Say it costs £130 per unit to manufacture etc.

    Apple sell it in an Apple Store for £300 so make £170 per unit. (Less some other costs)

    Yet Apple will wholesale the iPads to John Lewis and other third parties for £150

    Now Apple are making £20 per unit and John Lewis will make £150 per unit less their overheads.

    Generally electronic stuff retails at double wholesale. So the above is broadly correct.

    The retail price is set by the Manufacturer though, in this instance Apple.

    What you would make selling an iPad from your small one unit retail outlet that has been allowed 10 per month and I would make selling iPads from my national chain would be very different though.

    In a nutshell you need to see the accounts of the business to know what is what and this is not going to happen.

    Manufacture to wholesale is simplest but will change continually based on demand and therefore units produced.

    Allocation of resources and all that.

    How was that for a non-helpful answer Mike?

    Dan
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  • Profile picture of the author mjbmedia
    Hiya Thanks Dan

    I meant specifics, as in more accurate figures for the costs to get it to wholesale / direct to client, then from wholesale to retail , i can do examples easy enough but I need more specifics although doesnt have to be 100% accurate as as you say things change between suppliers/ retailers etc.

    eg an IWC Pilot top gun watch retails RRP £9500 , but what would it be wholesale to the retailer , Its often offered special at £6900 + so theres clearly a huge mark up already, and what would it be cost price ie the manufacturers mark up , I was wondering if theres somewhere (site or engine) that would give ideas at least of this (and many others) like there are sites/engines that give many other things, so I would be going into client meetings with more knowledge, better prepared, aware of the metrics in play etc
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    Mike

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    • Profile picture of the author jimbo13
      Okay I get you.

      I don't think such a site would exist. Companies wouldn't wish for this to be open knowledge.

      Dan
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    • Profile picture of the author HarveyH
      Originally Posted by mjbmedia View Post

      Hiya Thanks Dan

      I meant specifics, as in more accurate figures for the costs to get it to wholesale / direct to client, then from wholesale to retail , i can do examples easy enough but I need more specifics although doesnt have to be 100% accurate as as you say things change between suppliers/ retailers etc.

      eg an IWC Pilot top gun watch retails RRP £9500 , but what would it be wholesale to the retailer , Its often offered special at £6900 + so theres clearly a huge mark up already, and what would it be cost price ie the manufacturers mark up , I was wondering if theres somewhere (site or engine) that would give ideas at least of this (and many others) like there are sites/engines that give many other things, so I would be going into client meetings with more knowledge, better prepared, aware of the metrics in play etc
      I think the only way to do this would be to visit Alibaba and GlobalSources... You will be able to find wholesale prices but not retail prices to find retail prices just use a comparison website and you can them way both options up...

      As you say though wholesale prices vary depending on order size, company you deal with and many other aspects need to be taken into account.
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