4 ms·
That is gross margin on marginal cost of goods - not margin for the whole business. And 30% is on the low side. I would consider 25% to be the bare minimum an
by asmithmd1 17y ago
That is gross margin on marginal cost of goods - not margin for the whole business.
And 30% is on the low side. I would consider 25% to be the bare minimum and 50% (i.e. double your money to be good)
So the rule of thumb is triple the landed cost of goods to get the retail price. Buy it for $30, sell it to retailer for $60 who sells it for $89.95 + tax and everybody is happy.