Accounting and Markup 101quinlash - (5/25/2021 10:07:34 PM)
Skin Care Product - Mark up -> 78%
Link to source for average mark-ups
https://www.moneytalksnews.com/20-overpriced-products/#:~:text=The%20average%20markup%20on%20cosmetics,shoppers%20pay%20such%20a%20premium.
Had 48 North not ran so low on cash it would likely have done very well for itself but when I company can't keep the doors open it gets bought out by bigger companies that can take those products across the finish line. HEXO got'em cheap and will take those products across the finish line !!
Well queen, you've never actually been in business, have you.
Let me help, pal
Item A: If you sell a $1.00 cost item for $ $1.20, you have a markup of 20% and a gross profit of $0.20 cents
Item B: if you sell a $10.00 cost item for $ 12.00, you have a markup of 20% and a gross profit of $ 2.00
So - if you sell 100,000 units of each, you will have a total Gross Profit of:
Item A: 100,000 x .20 cents = $ 20,000.
Item B: 100,000 x 2.00 = $ 200,000.
From your Gross profit - you'll deduct your other operating expenses like packaging, salaries,
utiltiies, phone bill, mortgage, interest on loans and be left with 'cash' - profit or loss
So, do you want to sell Item A or Item B?
(I understand that scrapbooking stores sell individial sheets of .01 cent paper for .15 cents.
Huge markup - but do you know how many sheets of phkg paper you have to sell to pay the rent?)
48North didn't make money on cosmetics and neither will Hexo - and Hexo would be better off
just staying away.