Quote:
Originally Posted by Fast Eddie
In my opinion, from a life in retail, you must keep a margin of 100% or double up.
This enables all the other niceties people have come to expect like free delivery, returns procedure etc etc. It also pays the bills eg rent, overheads, tax, VAT, staff, admin blah blah.
After all these costs it also keeps the smile from a grimace when folk want showing how to use their new purchase and get it set up.
This was from a different industry but i am certain any shop owners reading this will agree  |
If model shop owners did this a TLR 22 would be on the shelf at £280 and a TC6 would set you back £600. Markup only turns into profit if you actually sell the stuff... at 100% markup shops wouldn't sell anything.
The markup on RC racing stuff is tiny. It's never been good, and with shops now competing with Hong Kong, eBay and each other via the internet it's now even worse.
I used to know a model shop owner who drove posh cars and went on nice holidays, but that was back in the 90s when there wasn't all this price competition. These days it's hard to see how anyone makes a decent living from it!