Mark up on Electronics

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apple

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Hi.

Does anyone know roughly what mark up you would expect on electronics such as Mp3 players etc. Im looking at selling branded products and When I check wholesaler prices to what there been sold for online I can only see a small mark up of 10 -12 % is this the industry norm. Thanks for your help.
 
People are increasingly buying these goods online; pile 'em high and sell 'em cheap seems to be the model. Unless you have access to cheaper (yet reliable) providers and can realistically hope to achieve a very substantial 'throughput', or have some kind of special point of sale advantage, I'd be wary of entering that particular market.

But that's just my own hunch, I'm no specialist — just a bargain-hunter! :D
 
As far as i can remember 13% is a low benchmark figure for any business, below that you cut your losses (or low gains) and run. I have sold some electrical gear in the past. I usually applied a markup of between 25% to 50%. If you have a shop and deal face to face with the public then your overheads are greater and likelyhood of theft increases. This must be taken into account when deciding markup.
 
Can only say that after indirect experience with brick/mortar retail stores that the mark up is approx 30-40%, retail costs are generally kept very tight with their online compatriots, but I'd imagine anything below 20% would be a struggle
 
Hi Apple,
I've personal experience selling electronic items through a small store that I own. I've had to source the goods that I sell outside the Irish distributor market as the U.K owned stores buy the goods even cheaper than a distributor can get them for. It's not a market I would be getting into on it's own. Even when you have goods that are cheaper the perception is that you cannot compete with big stores so people wouldn't even consider going to look at what you have in your store. I would recommend providing some type of service and then trying to cross sell the items that you might have in stock.

Shmee
 
Hi Apple,
I have been in the electronics business for the last 25 years(small retail shop). I am presently in the process of selling my shop as it is IMPOSSIBLE to compete with the large warehouse style outlets and now all the major supermarkets are on board too!! So dont waste your time and money even contemplating the idea regardless of how cheaply you can source them ....guaranteed by tomorrow the major supermarkets....the german ones in particular, will have them cheaper...and a three year guarantee!!
By the way...anyone interested in my shop??? hehe..goin` cheap!
 
There's a particular warehouse-style supplier I deal with who sell everything with a 12.5% base markup.

Some goods they charge more, others (if you haggle) less...
 
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