AboutJohn Expertise Are you looking for help on finding a place like a wholesaler? Information on keeping your budget low? Advice or help? Questions on catalog, online store, wholesale? Ask me. I may be able to answer basic and simple questions on, catalog, online shopping and wholesale. I run a few web sites and a business in catalog shopping, online shopping, selling wholesale to other stores and selling on auction sites. Want help, ask someone that runs there own business.
Experience Own on business involved in online shopping, catalog, selling wholesale to other stores and selling on auction sites.
Education/Credentials High School.
Small business owner.
Expert: John Date: 10/4/2007 Subject: Computer Retail Markup
Question QUESTION: I've invented a cheaper way to make an existing computer part. These parts currently sell for around $100. I can reduce it to $39, and still make lots of margin. I will be manufacturing it & selling it directly to computer retailers. What is typical retail markup for this industry ? i.e. If it retails for $39, how much would stores (online & traditional) expect to pay wholesale for it ?
ANSWER: Hello,
Let me answer this way.
My mark up is 1/2 to 2/3 of the wholesale price.
That is cheap.
most have 100% to 400% markup.
I am still in the start up and should be open with-in the month with a live site.
I may be interested in this product, pending what it is.
Did you get a Patent?
So you say retail of $39. That mean you would sell it at 12.87 to 19.50. Of course you have deals, agreements, bulk contract.
Are you going to drop ship?
Hope this helps,
John
---------- FOLLOW-UP ----------
QUESTION: Thank you for answer.
I was planning on a wholesale price of about $20.
From research I've done, your 100 - 400 % seems pretty generous... Thought most PC business is done on a pretty slim margin.
Ex. When Buy.com sells a 19" LCD for $180, they MAY make $20 on it. When DELL sells a whole PC for $499 they may make $40 ( I used to work at DELL ), if not lose money.
I've invented a flexible flat panel monitor mount. It allows you to mount LCD to desk/wall and move the LCD into any position.
Current flexible mounts sell for $80 - $150.
Mine will be $39, yet is superior to existing mounts in every way: it's stronger, reaches further, and moves around better, and hides all monitor cables within the mount.
Yes... its patented.
Idea being when a retailor makes $20 selling a $190 LCD, they can make another $20 by selling a $39 mount also.
Will sell wholesale, drop shipping, and directly off my own website.
Answer Follow-up:
I sell Gifts, Collectibles, Electronics,tools and more.
Check out my web site at: www.GiftRiteWay.com
I would be interested in talking to you about buying wholesale from you.
Yes you are correct. Sorry if I was not clear enough.
I was giving you a round figure of make up which some, not all stores do.
Some will make up 100-400% on some things. I was a supervisor at a wholesale club before. But that rule apply to certain items. Like you said, computer parts are marked up less, you are correct. That is done to sell them.
But look around. Like office max is a lot higher then newegg. Same thing, different mark up.
Like myself, my mark up is based this way. Take cost and subtract 1/2 to 2/3 off. So if it cost me $20 I will sell it at least $40. So your $39 is right on the mark where even I sell at. Good job.
Sounds like you have a good product. And I hope it works out for you. You got it price good.
Like I said, I would be interested in carrying this product if you are willing to sell wholesale to me with drop ship.
I wish you the best of luck and hopeful we can work together.
John
