Expert: Mary Ann Everett - 9/23/2009

Question
I will be selling vinyl dolls and am trying to determine a good price for them. Can you please tell me the typical price mark-up rate for dolls?

Answer
Dear Anita,
While collector dolls or limited editions might vary, specialty dolls typically work on a 50% margin at retail. So if you sell dolls at wholesale for $10, specialty stores will retail it for $20. Catalogs might make the retail a bit higher and higher volume stores might make it a little lower. Or both might keep the retail at $20 and want to buy it from you for less than $10.

To help you determine the viability of bringing a product to market, work backwards. What do you think the perceived retail value of the item is at retail? Does it look like a $50 doll for instance? Then figure a specialty shop will buy for $25, but expect larger accounts to ask for a 5-10% discount. The figure that you will need to manufacture or import the items to have in the US and at your warehouse ready to ship at a $12-$15 "landed cost" for you to make enough margin on it.

I hope this general outline is helpful. When you are ready to do your business plan, it would be wise to hire a business consultant that can help you see how the numbers need to look for your venture to be profitable.

Good luck!

Mary Ann