Question

Topic: Customer Behavior

Uk Cash & Carry Margin Stucture - Makro

Posted by Lazenby on 11/11/2008 at 10:34 AM ET 125 Points
Simple quesetion. Some friends are looking to introduce a new product to Makro. They have had the first meetings and there is interest.

Now they have to get pricing correct. They are looking to understand what the normal Cash and Carry margin structure looks like and then specfically what Makro is normally looking for.

If it makes any difference this product would be for bedding. Thanks much and have a great one.
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  • Posted by matthewmnex on 11/13/2008 at 7:57 PM Member
    Don't worry about margins, Start from the consumer price point.

    What would a typical buyer of this item be willing to pay for it?

    Check all the competition in Makro and elsewhere. Compare your quality against theirs. Remembr that Makro is a 'Discount House' so they will be looking to sell it cheaper than it is sold in ASDA or TESCO for instance.

    Once you have agreed on your selling price, you just work backwards from there. 22% discount for Makro or whatever wholesale price they ask for. Don't haggle too much with them over price, just get them to take the item. Once you get it into Makro you can start hitting the other supermarkets and bedding stores. Do not give them an exclusive or your dead :)


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