Home Forums Money matters COGS to Wholesale Price Profit Margin

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  • #1227069
    • Total posts: 1

    Hi everyone,

    I’m starting to offer more of my products for wholesale and it got me thinking about what is a “good” profit margin or if there is a rough industry standard.

    For example:
    RRP: $14.55 (excl. GST) / $16 incl. GST
    Cost of Purchase goods: $3.91
    Wholesale discount: 40%
    Wholesale price: $8.73
    Gross Profit: $4.82
    Gross Profit Margin: 55%

    Is 55% profit margin from my cost of purchase to wholesale sell price a good or not so good mark-up?

    • Total posts: 20

    Margins can vary from industry to industry and it really depends on factors like competition in terms of what you can charge.
    A 55% margin is one that many successful businesses have so looks like you are on a good thing.

    Off course you should always review your margins on a regular basis.

    Best of luck

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