My product markup question

[ixidor12]

Hello,

I am looking for someone who could give me an idea of markup, which well-known companies, such as Holland and Barrett or Planet Organic adds to products. I have an organic laundry detergent, which I want to offer to them, but it is very hard to work out the selling prices/ margins. Basically I would like to find out if it is profitable for me before approaching them. Otherwise it is a waste of time for myself and them too.

Lets say the product costs me £4.11 considering everything and I would like for Holland and Barrett to sell it at £8-8.50, but I have no idea if that leaves me with any profit. I would like to make at least £1 per item. Your comments are very much appreciated!

 

[The Byre]

If you are at that low price end of things, the retailer needs to be able to double their money before VAT. They will probably also require 90 days payment and sale-or-return at your cost.

 

[Mr D]

Price so you can have some profit. You control that bit, no one else is going to look out for protecting your profits.

Its likely big companies will want discounts, payment terms, returns etc. What will you do if the company wants say 25% discount, 120 day payment terms and return of unsold stock?

May well find that if you sell to a company at £5 they want to sell it for £15. Or more.