Distributors Margin?

usainbolt

I am selling into a market where the retailers margin is 35%, what margin should a distributor be looking to achieve based on this 25-30%??

Lucky Dub

30% is pretty much the norm, do you deliver the goods?

usainbolt

Delivered by courier at retailers expense.

Lucky Dub

Rare for the retailer to pay the carriage?

Are they a big retailer?

TheInquisitor

20% on sales is normally the minimum for a distributor. Get your minimum order at a good value is key.

I know of distributors that go as low as 10-15% but to compensate they have higher minimum orders of £3000+.

Out of 130 suppliers, we pay carriage to only 1 person. Carriage is always built into the price. Free delivery over €300 of an order for example!

oneis

Does anyone know what the retailer margin would be on Adidas and Nike clothing? I am in the process of setting pricing for a range I am looking to import and need to get an idea of the level of margin that retailers would get for similar items of clothing.

TheInquisitor

What they get from adidas might be 30%. What they would expect to get from your would be closer to 60% margin. Adidas and Nike spend billions building their brands and unless you intend doing the same over decades then don't expect to ask for high prices!