What margin does a retailer expect?
It varies by category and format. Grocery and mass typically work on lower percentage margins with high turns, while specialty, apparel, and beauty expect more. The buyer will usually state a required margin as a condition, and it is the figure your wholesale price has to be set against.
Margin is only half of the retailer’s calculation. They also weigh turns and the profit a facing earns over time, which is why a lower-margin product that sells quickly can beat a higher-margin one that sits.
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What each inch of shelf earns in profit.
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