Video 17 of 24. See more videos from this expert in Business Finance Help
Retail Markup From Manufacturer to Consumer
Retail markup is the difference in price paid by the retailer to the manufacturer versus the price that's going to be paid by the consumer for that same product. Find out about retail markup from manufacturer to consumer with help from a senior financial analyst in this free video clip.
Hi, I'm Jackie Jackson, and I'm going to talk to you about retail markup from manufacturer to consumer. Now this is the difference in price paid by the retailer to the manufacturer versus the price that's going to be paid by the consumer for that same product. Now there's various ways to go about determining what price the retailer is going to charge. There are for some products, an MSRP or a manufacturer suggested retail price. And this price is usually readily available to the public so if you as a retailer decide to stray from that price you should know that your customers going to keep you honest. For all other products, there's a range of ways to determine what you're going to charge. There are some retail professional associations that will give you some guidelines on what the markup should be on various types of products. For some products it's a 30 percent markup, for some products it's a 50 percent markup. If there's not a lot of competition in your town for that same product, you can be on the higher end of that markup.