What price should I be selling at

[harrydennis]

Hey, Ive been running my business for about 2 months now and has been relatively sucsessful

Ive jsut receantly started selling to shops. I buy my product for around £2.20. Shops sell it at around £15-£20 maybe £25. It's competitors prices are alot higher, but better quality.

What is the normal mark up amount, I'm unsure how much to charge the shops and what is the norm.

Also, Do i need to register as a business or inform anyone?

[gear7.co.uk]

Mark-ups / margins vary widely by sector and distribution model - for example clothing retailers will expect much higher margins than those selling consumer electronics.

There is no requirement in the law of the land to 'register' a business. However, if you would rather acquiesce to statutory legislation and hence tax laws, you should register as self-employed with HMRC if operating as a sole-trader or partnership. If you have significant turnover then a ltd company may offer financial advantages.

Can you give us any more information?

Chris

[missfituk]

Margins in clothing/fashion are 2.3-2.6 if that helps!

[James Smith]

"I'm unsure how much to charge the shops"

First up what you pay is not relevant, its what they will pay that counts, and then if this is enough margin to make a good return or not.

I would talk to retailers about their mark-ups and what they want to sell the product for to get a range of prices you want to sell to them at. I say range because it should be all about the haggle. Expect to get knocked down, and significantly for larger retailers. Different items have different margins, but 2-3 times is common so you might be able to get the same yourself.

If you are selling "stuff" in any volume then you may well benefit from being VAT registered as the shops wont care about paying you VAT, and you will be able to recover it on your costs, meaning 20% lower costs for you.

I hope that helps a little

Regards,

[tanakasan1734]

We looked into this recently and around 40% seems to be the markups shops want to put on our products. Again, we found it changes from shop to shop and how much the buyer thinks they can make back and how much they want it in their shop

Pricing is a very tricky area