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Posted: 8/12/2011 3:21:02 PM EDT
Just curious . Are there certain products that you make a phenomenal percentage on? I ask because I mostly hear people say margins in retail are small.
Seems like all or most retail stores would have certain products that knock it out of the park profit wise and by just shear numbers of  product sales
Link Posted: 8/12/2011 3:28:55 PM EDT
Usually it's the little stuff, so in theory it's a great profit margin but your actual profit is small. For example, carpenter pencils at 100% profit margin or better, but at less than a quarter each and a couple hundred a week... Every penny helps though.
Link Posted: 8/12/2011 3:31:03 PM EDT
[Last Edit: 8/12/2011 3:33:53 PM EDT by AKSig]
Retail GM here.

I have some products that are 85-90% profit (of sale price, mark-up works out to about 800%). Then there are the products that I make 5-8% on.
Link Posted: 8/12/2011 3:33:22 PM EDT
Lot's of places use "loss leaders" (certain products that they sell cheap and make no profit on) to draw folks in. Everything else is a tremendous markup. Local pharmacy uses milk and laundry detergents as loss leaders to draw business.
Link Posted: 8/12/2011 3:35:48 PM EDT
When I worked in retail at Office Depot part time. They made more money on the warranties & services. Store brand ink vs HP, Epson, etc.
Didn't really make that much on computers. Theres some other items but can't remember them all
Link Posted: 8/12/2011 3:37:05 PM EDT
SWAG? groceries, dairy, produce
no matter how f*cked up the economy gets, people still gotta eat.

retail makes its profit in SQFT and selection.
Link Posted: 8/12/2011 3:40:37 PM EDT
If a retail place does services, they usually have the highest profit margin.

Maintance, warranties, repair, etc....
Link Posted: 8/12/2011 3:43:38 PM EDT
I know from experience the ACE Hardware house brand stuff has margins that border obscene.  They make a lot of money on house brand stuff.  
Link Posted: 8/12/2011 3:44:25 PM EDT
Grocery store - thin margin, 1% to 2%

Furniture stores - much wider margins.  markups of at least 100%

Jewelry stores - don't even want to think about it  When you might sell a handful of items a week, you gotta make your nut fast.
Link Posted: 8/12/2011 3:48:59 PM EDT
Yes. There are things in my store that get upwards if 1000%, but the actual dollar amount is usually very low.

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