Margin between RRP and Wholesale Price

[IMEX Sourcing Services]

This might be a bit of a vague questions, but just trying to get some ideas. What sort of factors have to be taken into consideration, when you give a wholesale price list to your retailers, along with a RRP.

I am just interested in finding out, what are the margins usually like between the wholesale price and the RRP (Recommended Retail price) in percentage terms. I know it varies significantly from industry to industry and the price and type of items itself, but are there any benchmarks, which are taken into consideration, before deciding how much that margin should be.

I am more interested especially in relation to cheaper items where lets assume the wholesale price per item is between GBP1 - GBP4.

Thanks
Ash

[MinuWeb]

It really does vary alot, depending on whether an item is high turnover ot not would also make a big difference.

If I was buying for £1 and selling 2-300 per day or only 5 - 10 per day would also affect the profit per piece I would like to make.

Also remember to take VAT into consideration, if you sell an item to a clients for £1 + VAT they will claim the VAT back, however if they sell it for £2 including VAT they will be paying 30p VAT therefore only making 70p profit in the item.

[IMEX Sourcing Services]

Cheers. Looking for more ideas.