Mark up

[mbc]

I was told most shops mark up by about 17% but those guidelines seem to go out of the window when it comes to local honey. Whats other peoples experience when selling to shops ?

 

[crazy_bull]

I was told most shops mark up by about 17% but those guidelines seem to go out of the window when it comes to local honey. Whats other peoples experience when selling to shops ?

Anything from cost to 100% it realy does depend on the owners, but i would say most are between 20% and 30%

 

[RoofTops]

I doubt any retail shop can run on a 17% markup. For example, if a customer uses a credit card then that can bring the markup down to 14% - depending on card type. This is not sustainable when you take off the other costs.

Shops will differ but around 30% or more would be reasonable for honey I think.

 

[mbc]

Thanks for your replies

 

[psafloyd]

I was told most shops mark up by about 17% but those guidelines seem to go out of the window when it comes to local honey. Whats other peoples experience when selling to shops ?

How do you determine what a mark up is unless you have done a break down of all costs? And if you do, how does one factor in for startup? Is there a particular way you guys might assess depreciation of kit to assess the capital cost of producing the end product?

 

[DulwichGnome]

How do you determine what a mark up is unless you have done a break down of all costs? And if you do, how does one factor in for startup? Is there a particular way you guys might assess depreciation of kit to assess the capital cost of producing the end product?

This seems to sum up depreciation value nicely.
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791594&type=RESOURCES

Mike.

 

[Skyhook]

How do you determine what a mark up is unless you have done a break down of all costs? And if you do, how does one factor in for startup? Is there a particular way you guys might assess depreciation of kit to assess the capital cost of producing the end product?

Mark-up is the easy one. If I sell a jar to a shop for £4, and they sell it for £5, that's a 25% markup, otherwise defined as a 20% gross margin.

Calculating your net profit- that's a bit more complicated.

 

[Black Comb]

Someone I know with extensive retail experience says the minimum viable for a retail outlet is 47% GP. Thats about 90% mark up.

 

[RoofTops]

For things like clothing 100% mark up is normal

 

[oliver90owner]

Well, look at this! Extracted from WFP site. They were offering supers on a previous version and I quoted the numbers on another thread, but they are apparently not offering separate supers for the hives at this present time!

Polystyrene BS National hive Price = £ 110.00
The Full hive is supplied with:
a mesh floor,
BS National brood chamber (For those of you using 14x12 we will ship an extra honey super to put on top of the brood chamber at cost)
2 supers,
18 liter ashforth style feeder,
roof
strong nylon strap
This will retail for ?110.00 (14x12 version ?115.00)


So we have an extra super thrown in "at cost" for a fiver? (not really sure how that should make a deep into a 14 x 12, but never mind).

Now compare with this:

mesh floor,
brood box,
roof,
strong nylon strap
Price = £ 60.00

Sooo, the 2 extra supers and a feeder are £42, but for one super, "at cost" is a fiver.

Go figure; the mark up must be near to 150%.

That would put the supers at £15 each and the feeder at £12.

Obviously guessing as probably not quite right, but not a million miles away!

RAB

 

[greatbritishhoney]

17% is often used as the minimum break-even margin in some retail sectors.

 

[peterbees]

It depends on the type of shop. National Trust shops like to sell local honey, but they expect a mark up of about 100%. Independent butchers' shops and village stores may be happy with 1/3rd, and the demand will increase, because they soon build up regular trade.