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How much do businesses have to pay to sell name products?
This is a REALLY weird question. Obviously Walmart wouldnt buy an item worth $200 from a company, then sell it for $200 in their store. That would just be dumb. So the "list price" for items is OBVIOUSLY more expensive than it's really worth. But how much so? If a book's list price is $15 how much do companies sell it to stores for? Ok, so now you get my basic question. that being said, how much are Apple products straight from the factory (if purchased by a business like walmart or target)? Like the ipod touch, for example. I probably won't get any answers, but thanks for looking and possibly answering haha :)
2 Answers
- ?Lv 61 decade ago
The markup at retail is controlled by what the retailer thinks the trafic will bare. The wholesale price is combination of product production and base profit. you could buy something that is common and thus the price would stay down because of competition. Or you could buy a new item that is not offered anywhere else and the price would be marked up more. This is why manufactures make the same product for different companies and put a different brand name on it for them. It keeps the public thinking they are getting something special and thus are willing to pay extra. Furniture is typically marked up 300%. Clothing 80%. Food 6%. Gasoline 3%. The more common an item is, the less the retailer can get away with marking it up.