[Market-farming] Typical retail markup

maury sheets maurysheets at verizon.net
Wed Apr 4 10:08:42 EDT 2007


Willie,

Your right, I should have said 50 to 100 percent markup.  Math wiz that I am
concedes.  

Maury


Woodland Produce- Fairton, New Jersey
Hydroponically producing sustainable salad greens in the Northeast.

-----Original Message-----
From: market-farming-bounces at lists.ibiblio.org
[mailto:market-farming-bounces at lists.ibiblio.org] On Behalf Of Willie
McKemie
Sent: Wednesday, April 04, 2007 9:32 AM
To: Market Farming
Subject: Re: [Market-farming] Typical retail markup

On Wed, Apr 04, 2007 at 06:59:46AM -0400, maury sheets wrote:
> 
> Rachel,
> 
> It varies.  Talking to Whole Foods about their markup and they said 30 to
50
> percent.  If they think they can sell more at a lower price point, they
will

Grocery stores like to think in terms of "gross margin", which is, I 
believe, is their markup amount divided by their retail selling price.  
I think of a mark-up percentage as the markup amount divided by the 
cost.  Grocery stores seem to be happy with a 100% markup, which is 
a 50% gross margin, which is price=2xcost.  If you sell something for 
$1 and the grocery store sells it for $2, that is 100% markup or 
(($2-$1)/$2)= 50% gross margin.  Please correct me if I've screwed this 
up.

 




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