Original > Hot Tub Forum
Prices paid for Sundance Optima
needaspa:
On one of these recent threads, someone said they pay 6000 for a optima/cameo (same pricing) from the manuf. Apply a fair $500 profit - that allows a retail price of 6500 per unit.
Brewman:
Just because someone says something doesn't mean it is true. And marking up something $500 does not mean that the dealer is making a $500 profit. Profit comes AFTER other costs of doing business are covered.
Didja miss ECON 101 in school?
Seriously, get a clue.
Brewman
Chas:
It seems that some of you understand 'business 101' and some of you don't.
If you want to talk about markup, you need to understand what it is and how it is figured.
If an item costs $1000 and is sold for $2000, that is a 50% markup. That means that 50% of the selling price was markup - and this is the generally accepted use of the term.
Now, it may cost $900 to get that product from the manufacturer to the consumer's home - what with advertising, store rent, store operating costs, shipping, insurance, delivery and set-up, included items, employees, etc. So the Net Profit would be a hundred bucks.
If an item is free, and is sold at anything over free, then and only then do you have a '100% markup.' That could mean I got a spa free and sold it for $1. This happens when I get a call telling me, " come get it and you can have it."
So if needaspa is claiming 66% is standard in the industry, I think he may mean a real markup of around 33%, and he would be about right.
But when somebody tells me that THEY are the arbiter of a 'fair' markup for me to get on a given deal, I politely offer to show them one more thing - the door.
needaspa:
I think someone failed Math 101.
'If an item costs $1000 and is sold for $2000, that is a 50% markup. That means that 50% of the selling price was markup - and this is the generally accepted use of the term. '
Thats a 100% markup in your example! Here is the math:
( (2000 - 1000) / 1000 ) * 100
mowgli:
Must be either the New York area or me...price I get on both the Optima and the Hot spring envoy is approx. $8500...could the fealer really come down another $1000??? :o
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