Retail Prices

[GoonerGary]

I was walking about town today talking to potential retailers to stock mugs and stuff. Everyone seems keen which is a bonus, but was wondering how much are people retailing their mugs for in bricks and mortar gift stores?

Would you be budget, mid range or fancy?

[UK Printed Mugs]

We mostly sell to retail shops. Depending on mug (ceramic, bone china...) then you're looking at around £3.50-£4 ex vat with rrp being around £8.95. Obviously depends on if you're supplying in gift box, what the artwork is and minimum quantity.

[GoonerGary]

£8.95 ceramic or bone china?

[UK Printed Mugs]

Being a RRP then it's only a guideline of course but ceramic at £8.95 and bone china at £9.95. We do have some larger stores that in fact get a discount on the price from us and increase the RRP price as well and they sell well.

[Andrew]

6.99 for a 10oz Durham with acetate box as an average but can easily go £1 up or down. £2 up or down would be a push but can work. Volume at 4.99 and designer type of style at 8.99.

[Tubstar]

We sell them at £3.25 to £3.50 wholesale, with an RRP of £7.99.

I retailer looks to double their money usually. Plus if they turn over enough to have to be VAT registered, or if they choose to be anyway for one reason or another and they sell the mug at £7.99 then they get £6.66 revenue from the sale. So for them to have their 50% margin and double their money they would be looking to buy at £3.33 or less.

The easiest way to work out a wholesale price from an RRP is to divide it by 2.4. (Again, assuming they are VAT registered)
By the same reasoning you could use this to calculate what you would RRP your product at if you know the cost that you need to sell it at for it to be a worthwhile line.

So, If a product costs you £1.50 to make and have enough profit selling at wholesale you decide you can do £2. The RRP should be 2 x 2.4 which is £4.80.
That would be a a random number for a RRP so would become £4.99. If you really wanted to push it then you could put your wholesale price at £2.08 which would give them exactly what they are looking for margin wise. Although, if you kept it at £2, and one of your competitors is using the same calculations your product looks more appealing on paper giving about 52% margin. A lot of retailers (myself included for the past 20 years are driving by the number as much as the product design etc)

[Tubstar]

RRP: Wholesale:
99p £0.41
£1.99 £0.83
£2.99 £1.25
£3.99 £1.66
£4.99 £2.08
£5.99 £2.50
£6.99 £2.91
£7.99 £3.33
£8.99 £3.75
£9.99 £4.16
£14.99 £6.25
£19.99 £8.32
£24.99 £10.41
£29.99 £12.50

This is a fair good "rough reckoner" to see how your prices should be at least. Don't forget though that if you offer people more margin it encourages them to repeat their business with you. Some of my suppliers for my retail place actually give me 70-75%. They are great earners for the shop and sell well for me. It would take a lot for me to stop buying from them.

[GoonerGary]

Cheers for the numbers. Yes I've always used the 2.4 guideline although some of the upmarket stores seek x3. If you are buying in premium mugs from the likes of Xpres etc, you would need to revise the £1.50 figure to allow for the recent price hikes.

[pisquee]

our mugs rrp is £10
we use a 2.5x mark up from ex vat wholesale price to rrp inc vat
we sell retail through our own shop, etsy, noths, folksy, own website, and wholesale to around 200 shops across the uk.

[Andrew]

our mugs rrp is £10
we use a 2.5x mark up from ex vat wholesale price to rrp inc vat
we sell retail through our own shop, etsy, noths, folksy, own website, and wholesale to around 200 shops across the uk.

Is that for your own bespoke China mug?