Hi


The manufactor sells shoes for $15 each. The retailer sells them for $65.
A 400% market-up.

Indoor furniture is the same way. Over 400%

What is the general percent structures on comsumer goods? Cars, electronics, PCs, food items, jewery, ECT.

What about luxery items(watches, motor boats) vs. essential items (soup, boxer shorts)?

It's probably different for every product and category. Plus the markup is higher for upmarket goods. Do you think the % markup is the same for a $12 Casio watch as it is for a $12000 Rolex? The more the product is a commodity (high volume, low price, older), the lower the margin.

Are you trying to set a product price?

Interesting concept suggested in Wave 4 books about production cost of many items reducing as the getting it to market cost increases. In years far past, multi level costs were often much higher than retail price. Now, many mlm costs are in line with retail.

Isn't the real dictator of market pricing / margins the market saturation level of the product? Look at grocery stores: Horrible margins at the Super store level but great at the niche subordinate (Winn-Dixie vs. Wholefoods).

I work for a manufacturer in the industrial industry. And one thing I can say about pricing is that when we have to raise our prices due to a price increase in materials, such as copper, and even oil, than our customers have to raise their prices too.

But generally, prices are always going to be marked up a certain number of points. I am under the impression that there are many different things that go into pricing. Overhead, accounting, inventory, supply/demand. Each company is going to be different.

If you were to look at two different manufacturers that put out the exact same products - competitors in the industry, it's not uncommon for one company to have extremely higher prices than another. This is because they do their accounting differently, they probably use different software, there are different kinds of overhead, and also, most importantly, each company goes through a different process. Another contributing factor could be how much they pay their employees. It's possible that a company w/ cheaper prices, could pay their employees less, it could be they get paid more! Who knows!

Just my 2 cents.