A ubiquitous question from aspiring entrepreneurs, to which there is no short answer 🤷♀️
Because there are a lot of criteria for determining the markup! Among our clients, there are stores with both 100% markup and 800% markup. The truth is somewhere in the middle, but let's figure it out:
1. City in which you are opening your store
In New York, salaries, rent costs, and the general standard of living are higher. Therefore, the markup there will be higher than in the average city. According to our observations, most offline stores in the capital sell at a markup of 400-600% of the original cost of the goods, including delivery. If these are regions or online sales, then a markup of 300-400% would be reasonable.
2. Sales Strategy
We like the popular concept of stores that purchase inexpensive but stylish goods, set a small markup, and, thanks to advertising budgets and high-quality presentation, provide huge traffic and sales, making money on volume. The trend of recent years: clear folk clothing at an adequate price.
3. Target audience
Who do you want to sell your product to and at what prices? Students from the institute, on the contrary, are not interested in your tops made of natural silk for 7,000 rubles, no matter how beautiful they are. Clients of an expensive beauty salon in the neighborhood will be afraid of polyester dresses and prices of up to 2,000 rubles. Find your audience and get ready to experiment for the first few months. This is paradoxical, but sometimes a product begins to sell better when the price is raised! This means that you have met the audience and its expectations.