Retail Tip: Gross Profit Margin

imagine having a story that's busying all day long people aren't forming emergence is flying off the shelf what could possibly go wrong well you could go broke

how can this happen by not figuring your margins correctly were calculate it your gross profit percentages on this episode of retail tips. you're gross product percentages more than is simple markup a market with just the difference between the hotel cost and the retail price for instance if you buy a cage.

Maybe for a dollar in sold for a dollar fifty your market is fifty sensor fifty per except that sounds going right but grows problem takes new count the bigger business picture is super percentage of every dollar you on that can be used to cover your expenses. so that's same dollar fifteen candy is only giving you a gross profit of thirty three percent and that's really not enough.

every merchant nice category and your story has a growth profit benchmark and the benchmark or can you can go in as high as forty five percent prepared foods can bring up to fifty two percent thought and brings up to sixty five percent. so here's what calculate that grows profit percentage for a specific eyes.

yeah we take the cost of the item and unified divided by the number you get my attracting the gross problem percent and you want from one hundred. let's say we're pricing our package meat categories which should give us up to a forty percent growth profits one hundred miners forty and sixty now make sure to put a decimal point before the sixty.

Now let's take it cost at once or two who's sixty five cents point six five when we divide it by point six is. so we're going to reach all price it gives us a forty percent growth profit in this case the right reach oil price of this i them is a dollar eight and that. they all there is to it for a different categories just plug in different growth problem percentages like twenty percent for dairy out.

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if you have any other questions about your gross profits contact rd center specialists we're here to help for a complete list of growth product benchmarks to apply throughout your story our convenience to our own.