Sale standard percentage

[sportsshoppe]

I am marketing shirts to sell in various clothing stores, what I am wondering is what kind of percentage does someone offer a business to sale there merchandise. I am going to use a cosignment type payment so the business is not out any money to house the shirts and other items. Thanks ahead of time.

[royster13]

I am marketing shirts to sell in various clothing stores, what I am wondering is what kind of percentage does someone offer a business to sale there merchandise. I am going to use a cosignment type payment so the business is not out any money to house the shirts and other items. Thanks ahead of time.

I try for 40% bit looking over my stats, I am at about 38% average.....

[sportsshoppe]

royster13
So your saying to give the business 40% of the shirt price ( I am setting the price as a standard price no store mark up ) to me that seems like a lot but that is why I am posting this on the board. I know that location has a lot to do with it and am taking that in consideration. If I set the price at $19.95 and the store is getting 40% that is $7.98 per shirt they are making and cuts my margin down quite a bit. As I read your post, do you have shirts in retail stores and giving them %38 to sell the shirts?

[blue moon]

from a business point, 40% seems very reasonable. Standard retail margin is 50%. If they don't have to pay for the items in advance, they should be getting less. so 40% makes sense. If you drop the margin too much, it is not worth the time to the store owner so you have to give them some incentive to try to sell it.

pierre

[royster13]

royster13
So your saying to give the business 40% of the shirt price ( I am setting the price as a standard price no store mark up ) to me that seems like a lot but that is why I am posting this on the board. I know that location has a lot to do with it and am taking that in consideration. If I set the price at $19.95 and the store is getting 40% that is $7.98 per shirt they are making and cuts my margin down quite a bit. As I read your post, do you have shirts in retail stores and giving them %38 to sell the shirts?

Yes the store gets 40%......On the same shirts if they buy outright they can get up to 60%....

[sportsshoppe]

Thanks for the tips.... I had no idea on the markup so this helps soooo much.