How to figure the percent to markup a product depends upon a wide number of factors. For example, how much traffic does the store see in a day? How many of the particular item is normally sold in a day, week, or month? A store owner has to calculate the value of each shelf. Imagine that there are two shelves in a store--one holding 1,000 candy bars and the other holding 100 beanie babies.
. Right away, we recognize that one shelf can simply hold more of an item. Next, we notice that we well about 500 candy bars each day, but only two beanie babies. Clearly, candy bars are more profitable. We also want to keep our candy bars at the same price (or a lower price) as other stores in order to keep up our sales. So we mark each candy bar 50 cents. This means we are taking in $250.00 each day in candy bar sales. To equal the same for our two daily beanie baby sales would mean charging $125.00 for each beanie baby. If we can't get that much for each beanie baby, we might want to try putting something that sells better on the beanie baby shelf. If all of this math seems too much for you, try comparing prices with other retailers, You will find that most stores markup prices by about 20 percent.
