clair

Someone on here was asking about markup on fabrics. So this is what I know . I was at the LOS shop and there was some xmas fabric marked 60% off and as I was getting some fabric cut I said to the clerk if a person need fabric that was the table to shop at " she said "yes were selling it at cost" The general rule according to her was any time fabric was 60% off that was usually selling at cost to the shop. So if thats true do the math. There seems to be a good markup on it. Now thats not so bad but what upsets me, is try and find fabric loomed in the U.S. . imagine what the markup would be if it was manufactured here. anyone have any info. on fabric price I'am listening.

DogHouseMom

60% is not a bad markup (to the customer), and probably less than their markup on other items like notions and services (but remember their sales in those areas are a smaller percentage of total sales).

The 60% has to cover their cost of the product PLUS labor PLUS all the indirect costs (rent, gas, electric, insurance, etc). And lest we forget, businesses are in business for one reason only - to make a profit. A reasonable profit margin (after all expenses) is 30%.

Yes. I'm a cost accountant :)

happyscrappy

i have worked retail, and know people who are in retail. minimum mark-up is usually at least 100%. if they are selling their products at 60% mark-up, i wonder how they stay in business.

NikkiLu

Several years ago I had the "thrill" of going to a wholesale fabric warehouse with a friend who was purchasing some fabric for a local quilt shop's block of the month. The cost was 1/2 of what they were selling it for. So, if it cost $2.50 per yard, then the quilt shop sold it for $5.00 per yard. I think that the bolts had about 10 or 15 yards on them that she got.

HTH

CarrieAnne

I would love to visit a place like that. How fun!

charmpacksplus

Mark up and discounts are not the same numbers. Not sure what the regular price is or the sale price, but let's say the regular price was $10 a yard. 60% off would mean the sale price is $4 a yard. If that is their cost, then they marked it up 150%. (The cost plus 1.5 times as much) If they had marked it up 60%, the regular price would have been $6.40.

Favorite Fabrics

That must have been quite a while ago, if there was fabric that that wholesaled at $2.50 / yard. Nowadays, most of the new fabric lines are priced at $4.95 - $5.25 (and up) per yard.

And the Wall Street Journal had an article today stating that cotton is near its all-time high. I would take that to indicate that costs are going to continue to increase for at least another half-year. There is a lot of stockpiling going on, which increases the apparent demand, which drives the price still higher.

pinecone

Using the pricing that Nickii suggested, the cost to LQS at $2.50/yard and selling at $5/yard it is a 100% mark up. If it goes on sale at 50% off that makes it $2.50/yard or at their cost sooo, the way I see it if 60% off is at their cost, they must mark it up more than 100%. :?:

piney

midwifehc

If 60% off the retail price is cost, their mark up is well over 100%.

If the fabric's original shelf price is $10 a yard and it's on sale for 60% off (cost) the cost price is $4 a yard.

from a wholesale price of $4, it is a 150% mark up to get to $10.

midwifehc

clearly I didn't read all the replies...charmpacksplus beat me too it.