This is Quora question I was asked about how much does Target mark up its items.Not including produce, on average Target’s margins in my experience are 25–30%.I use margins and not markup because in the industry, margins is what is used and they are computed off of suggested retail price (SRP or MSRP). So, for [...]
Working from SRP (Suggested Retail Price) backwards, I see the following for FMCG profit margins: Anchor price/SRP: Start with SRP to your most expensive channel - which represents your top-most anchor price. The markup from you as vendor to retailer is 50-60% to the specialty/top priced retailers. For non-specialty channels - like drug, mass, grocery, club, [...]
This post demonstrates how to use margins and benchmarks in financial statements for a CPG or consumer product business. Margins Defined By margins, I mean an expense line item that is relative to net profit, expressed in percentage. Figure 1 is a basic example with the key margins to which we will pay attention. Figure [...]
