working out reasonable markup

[slinkyswimmer]

Are there any industry formula for working out wholesale to retail markup or is it a free for all? I have gone for value pricing and have a good idea of what products would sell for; I now need a starting point for negotiations with retailers. I have already been approached by someone who wants to stock my products and wants to know what my wholesale price is. Any advice on my starting point? Thanks. :redface:

 

[Barnie]

Its as much as you can get for your product market and given audience.

its not flat across the board, cosmetics are big markups for example but electronics not so good.

what i used to do was work backwards, to work out max retail cost i could get away with then work margins back from that.

 

[Tweek]

It can depend on what you're aiming for. If you want to be a cheap company and undercut your competitor then base your prices on theres. If it's niche and you have the opportunity to make the prices yourself, don't be afraid to make a 100% markup, if sales are slow, introduce a sale, you're still making a massive profit.