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Old 02-05-2013, 11:44 AM
  #46  
ThayerRags
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Join Date: May 2011
Location: Frederick, OK
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Originally Posted by NikkiLu View Post
... when his fabric was at 50% - then he was selling it at cost. HTH
A 100% markup is common, for LQS operations and other similar small retail businesses. Most of the fabric and notion wholesalers suggest doubling the cost (100% markup) as a pricing guide, but each shop has to learn what their overhead costs are at each facility.

Markup should not to be confused with “profit margin” at all. Markup is the amount that has to be added to the cost of the item to pay for employee wages/salaries, insurance, taxes/licenses, rent/mortgage, utilities, advertising, supplies, office expenses, repairs/maintenance, bank fees, any other expenses incurred to operate the business, and profit. Profit margin is what is left after all of the expenses/bills are paid.

CD in Oklahoma
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