emptycooler Posted April 16, 2005 Report Share Posted April 16, 2005 When you sell your lures to a retail catalog co. or tackle shop how much markup do they add to your product? Lets say you sell 50 lures to a catalog co. at $10.00 each, how much will you pay retail for the product? Is there a set amount? thank you Chris Quote Link to comment Share on other sites More sharing options...
nova Posted April 16, 2005 Report Share Posted April 16, 2005 Ther is no set percentage of markup. The company will know what they need to cover their overhead and make a profit. You can suggest a selling price. Quote Link to comment Share on other sites More sharing options...
Joe Posted April 18, 2005 Report Share Posted April 18, 2005 Hi Chris, Most of the shops that carry my baits are working on a 36% mark up. I have one that is close to 50%. I can tell you that the stores with the lower mark up are making more money, because they have more sales and are making their money on volume. The store with the 50% mark up does not sell near as many baits as he could if he were to lower his prices just a bit. Good luck, Joe Quote Link to comment Share on other sites More sharing options...
emptycooler Posted April 18, 2005 Author Report Share Posted April 18, 2005 Thankyou Joe and nova for your replys. Do you think catalogs since they deal in volume would be around 36%? Thankyou Chris Quote Link to comment Share on other sites More sharing options...
Pop Posted April 18, 2005 Report Share Posted April 18, 2005 Hi Chris. It is hard to say about catalog companys. For example, Bass sells wholesale to retail stores. I would think their retail catalog mark up is greater than 36%. Retail stores can order from them with a discount of 20-40% depending on the item. Keep in mind that the larger the volume they purchase from a manufacturer (assuming they are purchasing direct) the lower their price. Sometimes they pass that savings on to the consumer and sometimes they don't. Fishing reels have a much lower mark up than most other items. If you are trying to price something you manufacture inorder to sell to a catalog company, I would figure what I needed to get to make the profit I need and not worry about what the catalog company is going to charge. I would also let them know that the price is subject to change upon renewing their contract with you, if you find that the business is not profitable enough. If the business is profitable, don't be surprised if they start manufacturing the item themselves. Catalog companys have been known to do that. Good Luck Pop Quote Link to comment Share on other sites More sharing options...
