General Retail Business Issues/Specialty Retail


I have a product that I am looking to sell to specialty / boutique stores and I am wondering about how much margin these retailers are expecting?  For example, if my cost to them is $10, how much would they need to sell the product to stay in business?

It somewhat depends on the type of specialty store you are selling into. For example, a fashion retailer (shoes, clothing, jewelry etc.) is going to need or at least want at least a 60% margin, which means your $10 cost will represent a $25 retail price (formula is your cost - $10 divided by COGS percentage 40%).  If it is not a fashion store, lets say a sporting goods store or a hardware store, they would like a 50% margin, so the $10 cost would translate into a $20 selling price.  

Now, this does not mean that some fashion and non fashion stores will run with much higher or lower margins, this is certainly the case, but what I have given you is the average.  Retailers love high margins, high margins can hide or mitigate a whole bunch of mistakes.

Good Luck

General Retail Business Issues

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James E. Dion


Most questions about trends in specialty retail, how customers are changing both in the US and Europe. Demographics for all countries as they relate to retail trends and issues. Store Operations, Buying and Merchandising.


Over 40 years in the retail industry, store level, store manager, buyer, merchandise manager, Vice President.

BS Psychology, MS Psychology, PhD(abd) Industrial Psychology Illinois Institute of Technology

Past/Present Clients
Microsoft, Harley-Davidson, Ritz-Carlton, Hummer, Williams-Sonoma, Ace Hardware, Coleman Spas, Aldo, Intel, Dell, Safeway, New Balance, IBM, Kodak, Bata International, Nortel Networks, Honey Baked Ham Co., Man Alive, Highsmith
B.S Chicago State University M.S. Chicago State University PhD (abd) Illinois Institute of Technology

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