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 is a question I received via a discussion thread and I am reposting my contributions to the thread here. As a rule of thumb, natural.organic is always a 50% margin. If selling through UNFI, Tree, etc. there might need to be another 15% added in for them, for a total margin of 65% to WFM, [...]
Take a look at the following back-of-the napkin P&L. This is from an actual early-stage business. The product retails for $40 and wholesale cost is $20, which is the gross revenue to the business. COGS is fairly hefty because the business is small and does not yet have the volume to bring down its [...]
