Ive been curious as to how much retailers generally pay a wholesaler and how much retailers generally hike up the price. For example, say I own a pet store. How much money do I usually make when I sell a bag of dog food? And can just anybody buy from a wholesaler. If not, how do you go about buying from wholesalers?
Why would a wholesaler not sell to everybody?
Ramon
Comments
60-70% mark up. And, you have to be a business and buy in volume to be able to purchase as a wholesaler.
I am a department manager for walmart produce department. In the department the average mark up is 40%. Bananas cost the store 29 cents a pound and turn around and sell them at 67 cents a pound. And Hass Avacados cost the store about $1 each and selling them $1.18 each.
But other smaller businesses will have a higher mark-up about 50 to 60 percent.
Most whole sellers will only sell to a brick and mortar type store or you can prove that you have your own business. There are very few whole sellers that will sell to the public. it depends on who it is and what they are selling. You most likely have to prove that you have a store or in the process of getting a store before you can get any wholesell price.
The mark up varies from 40% to 60% in most cases. A wholesaler doesn’t want to sell to the public for many reasons. The biggest reason is that a wholesaler actually makes less per item for the most part. They make their money in large lot sales. It costs the same to bill a store for a large shipment of something as it does to charge an individual for 1 or 2 bags. Then there’s the cost of displaying the product and handling it in the store. A wholesaler doesn’t display or handle individual packages. They just move pallets around.
This is where the big box such as Costco stores save a lot of money. The product is sitting on the pallet for you to grab. They don’t pretty up the store and they sell bigger packages.
