Is there any standard markup rate that retailers try to adhere to?
For instance, I’m working with a small startup company that has a product with a suggested retail price of 19.99. If it gets sold to the retailer for 14.99 that would be a 25% gross profit and a 33% markup rate. Is this high enough? What do retailers expect to get markup wise? I also understand that if a supplier bought huge quantities they would expect a lower price but I’m just looking for a general rule of thumb if such thumb exist.
If it makes any difference this is a specialty tool used in the HVAC-R, Automotive and a few other smaller industries and geared mostly to professionals but there are some diy people out there who would buy it.