 aefstoggaflmOpen Source FanPremium
join:2002-03-04
Bethlehem, PA
kudos:2 | reply to davidg
Re: How is suggested retail price figured out? Interesting.
How does one figure out what the required profit margin is?
Thanks |
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 VoxxjinMade of HamburgerPremium
join:2010-01-13
San Antonio, TX
 ·Time Warner Cable
| said by aefstoggaflm:Interesting.
How does one figure out what the required profit margin is?
Thanks
Somoe of it might be a required percent to make the production beneficial to the company. I would imagine the board or CEO or whatnot would decide the goals of the company. Different companies will have different goals for their products.
Part of it is also market research and finding out the want/need/desire for an item and how much people (your targeted population) might be willing to pay. If you are the only company that supplies the item, you might charge a little more (extra profit). However if you are entering a market with other competitors, management may decide that a lower profit margin is acceptable in order to gain market share.
And part is if you are only making a small amount of items, the margin will likely be higher whereas if you are making tons of the things a company may be ok with a smaller margin knowing that profits will still be a lot based upon volume.
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Cry "Havoc!" and let slip the dogs of war |
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 HallPremium,MVM
join:2000-04-28
Dayton, OH
kudos:2 | reply to aefstoggaflm
said by aefstoggaflm: How does one figure out what the required profit margin is? There is no across-the-board answer for that. |
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| reply to aefstoggaflm
said by aefstoggaflm:Interesting.
How does one figure out what the required profit margin is?
Thanks
Get an MBA. |
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 Hayward K A R - 1 2 0 CPremium
join:2000-07-13
Key West, FL
kudos:1 | reply to aefstoggaflm
said by aefstoggaflm:Interesting.
How does one figure out what the required profit margin is?
Thanks
Well if it is a new unique patented item pretty much whatever you think the market can bear.
Or as the Telemarketers do make it seem cheap but charge as much for shipping and the nefarious HANDLING.... like it took 100 people to put it in the box?
Just another of what 100 other people make MUCH lower.
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KearnstdElf WizardPremium
join:2002-01-22
Mullica Hill, NJ | They also like to hide prices via the use of payment plans. To the people who actually buy crap from an infomercial or telemarketing firm there is the infamous "Only six easy payments of $19.95" rather than just stepping up to the plate and admitting that its $120+S&H
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[65 Arcanist]Filan(High Elf) Zone: Broadband Reports |
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