Original > Hot Tub Forum
Prices paid for Sundance Optima
needaspa:
Mowgli,
I have been quoted 7200 (plus tax) for an optima/cameo with:
cd ozonater
cover
lift
led lights
chemicals
I am working them and trying to get 6500.
Chas:
--- Quote --- Thats a 100% markup in your example! Here is the math:
( (2000 - 1000) / 1000 ) * 100
--- End quote ---
Sorry, but you have it completely wrong. I stand by my example. I'm not really sure where you got your equation, but it has nothing to do with the topic at hand.
Markup is the percentage of the retail price that's above the cost. $1000 is 50% of $2000 - no matter who does the math. Here's a quote from a site with definitions of retail terms - since you don't seem to want to believe somebody who is actually IN business:
"Markup - The amount added to the cost price of goods to give the required selling price. " Find that at:
http://www.hbc.com/hbc/mediacentre/mediakit/glossary/#M
or any other site that defines retail terms.
Chris_H:
Chas:
Why are you up? It is like 7:38 over on that side of the world.
Chris H
needaspa:
Say the tub is costs 5000 from the manuf. It is marked up 75% to 8750 or 3750 in markup. This markup (3750) covers dealer costs and profit.
The big question is and this is where the grey area takes over. What are costs and profit???
'$1000 is 50% of $2000' Yes, that is going from 2000 to 1000. It is 100% markup from 1000 to 2000.
Lori:
Give up, Chas! Needaspa will not listen to reason!
I stand behind you! I am in charge of profit margins in our business (Automotive Refinish). I purchase the goods coming in and price them to go out.
Example: Masking tape-3/4" comes to me at say $1.50. 30% mark-up (divide by .7) and it comes to $2.14. That is what it costs my customer to buy it. They in turn mark-up 30% (again, divide by .7) and the list price is $3.06 (with rounding).
You can also take list and mark it down for each (multiply by .7).
It has worked for our company for 30 years!
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