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Thread: Fashion's Night Out (FNO) 2011 is also Techie's Night Out

  1. #21
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    What type of profit margins do sellers make on their products? Should they sell them below cost on FNO?

    If a seller makes a 10% profit margin on a product, how big should his discount be?

  2. #22
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    so your telling me for example a single plain white tshirt from sun island is really worth over 1k?
    and when they post on their ads over 50% off ... its really 10% ? ... and at 50% off a plain cap still cost over $500 the same one street sellers are selling ? .. confused ..
    just for Random detail , i actually run a business place myself .. and my % gained is maxed 5% so its cost price + 17.5 % + % profit = selling price .. all due to fierce competition and since this love cheapness ... they will complain for cheaper prices
    Downtown wholesales gain about the same % as i do due to their competition , thats why everyone goes down there ...
    Last edited by FossilWolf; Sep 18, 2011 at 09:39 AM.
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  3. #23
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    Quote Originally Posted by FossilWolf View Post
    so your telling me for example a single plain white tshirt from sun island is really worth over 1k?
    I have no idea. I don't know what costs Sun Island has to pay.

    Quote Originally Posted by FossilWolf View Post
    and when they post on their ads over 50% off ... its really 10% ? ...
    Retailers are sometimes willing to sell old and hard to sell stock below cost to move it out of the store. If all goes well, they can make enough from the sale to purchase some new stock.

    Retailers will sometimes sell goods below cost if they have a big expense coming up and really need to generate cash quickly.

    Quote Originally Posted by FossilWolf View Post
    just for Random detail , i actually run a business place myself .. and my % gained is maxed 5% so its cost price + 17.5 % + % profit = selling price .. all due to fierce competition and since this love cheapness
    Okay... You have a profit margin of 5%. What kind of discounts can you give on FNO and still make some money?

    Remember that retailers will sell below cost during times of stress. FNO is supposed to be a time for them to make some money.

    Here is the general idea behind FNO.

    • Customers should get some items cheaper than normal.

    • Retailers should make less profit on each item. However, more items will be sold so the overall revenue and profits should be better.


    If resellers have to sell items below cost during FNO, few will support it. For sure they won't be bringing down Vivica A. Fox to promote their store.

    Sigh... Vivica, Vivica, Vivica...

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