What sort of markup do US online stores use ?

[Digmen1]

Hi Guys

We are manufacturer of a small new product. We want to approach US based online gift stores and computer supply stores with our products.

Does anyone know what sort of markups do these kind of stores usually require ?

[gpilling]

A friend of mine sells to gift shops, not online ones, but stores filled with little things. Those stores will double or triple their cost on an item to get retail.

Not sure if that helps.

[dickbaker]

In my niche markup can be as low as 5% or as high as 20%. In other niches markup can be 1000%.

I have one type of widget that I sell to the folks in my niche, usually at a 12% markup. The manufacturer makes the same models, but targeted to a different niche with just a few minor modifications. I decided to sell those on my site and I get double the markup from people in the other niche. They're accustomed to paying a lot of money, and think my prices are a steal.

[HRoth]

Sorry. I posted a response and then realized you asked about online, not b&m.

[edited by: HRoth at 4:34 pm (utc) on June 7, 2009]

[T_Miller]

Don't confuse markup with profit margin.
Many people confuse and/or interchange the two but they are completely different metrics.

We try to maintain a 65-70% profit margin on our products.
I've worked in other niches where the target was 40%, another where 20% was the norm (high ticket, low margins).