Home – New Forums Marketing mastery Selling to shops – what is the right markup?

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  • #997298
    heftzwecke
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    Hi, I haven’t been here for a while. I am selling herb plants online and offline. Since some months I am selling in a shop in town and this goes quite well. She only wants 20% (commission) this is unusual but I had to bring my own shelves shade cloth etc. I want to ask in other nurseries, maybe hardware stores – what do you think is a reasonable markup for the shops? What would be the markup for commision or for wholesale? Plants are perishable at least if not properly cared for.

    #1211277
    Adam Martelletti
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    I don’t know how your business is set up, Would it be best to spend more time on trying to market and sell yourself direct to the public for the best return on investment?

    My concern would be the plants die off and not being looked after. Who is responsible for looking after them?

    If I was the retailer I would be wanting to make more than 100% mark up on the product, sell quick and no effort in looking after them or it wouldn’t be worth my time.

    Just my view from the outside :)

    #1211278
    heftzwecke
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    100% is the seller gets 50% I think that’s too much for my taste. I do one shop with 40% and already think that is a lot. In the 20% shop I installed a watering system so basically I look after the plants and it is close so every now and then I hop into the shop. So in your opinion 40% is not too much!

    #1211279
    MikeDav
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    I think it depends very much on the volume you are selling and the work involved in getting the plants ready for sale.

    As Adam points out, the standard with retailers used to be 100% markup on the wholesale cost however if they are selling on consignment they may be willing to settle for less.

    From the retailers perspective they also need to consider the opportunity cost of having your stock taking up that space.

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