Grocers certainly operate on slimmer profit margins than most other retailers. Salespeople resist consumers who ask for this price and only receive about 7% commission on MAP sales. This lower price is the minimum at which most retailers are allowed to sell the item. But there’s another helpful abbreviation to know: MAP (Manufacturer’s Advertised Price). Salespeople usually receive a 15-20% commission if they sell an item at the inflated MSRP. No industry manipulates the meaningless MSRP (Manufacturer’s Suggested Retail Price) quite like the furniture industry. Manufacturers can operate with a lower retail markup because the real money is in the service. The profit center for phones lies in the service contracts and usage fees. Cell phones, for example, are only bumped up about 8% between wholesale and retail. The entire category of electronics has some of the lowest markups around. Typical cross-trainers or athletic shoes carry a 100% mark-up, while higher-end fashion shoes at boutique stores can be marked up by as much as 500%. Markup is as varied in the footwear industry as sizes and styles. Jeans from mid-level retailers like Kohl’s or JCPenney are slightly saner with an average markup of 115%. The price of boutique denim jeans can reflect a markup of 350%. Jeans are the biggest culprit in the clothing category. A knowledgeable consumer is better equipped to understand the real value of a discount based upon a retailer’s real cost and not the markup/markdown shell game that seems to entice us so often. However, from a consumer perspective, a broad range based upon research is better than no idea at all. No single rule holds true for each, and broad ranges are the norm. One caveat: Consumers in America have a wide choice in retailers, and big box stores, outlets, malls, and boutiques all have their unique pricing structures based on overhead such as advertising, real estate prices, buying volume, staffing, etc. The list below outlines some of the more common consumer goods and the associated markup from wholesale to retail. With a few days worth of research, I’ve narrowed down the range that most retailers employ when pricing their items. Even in the Information Age, online searches on the subject bring wild variances in statistics (when they exist) and huge gray areas of subjectivity (when they don’t). The whole topic seems shrouded in complex formulae and arcane insider knowledge. Very few resources exist to research the average markup that retailers enjoy between their wholesale costs and retail prices. And during tough economic times, retail shopping brings endless commercials and high-decibel ads all proclaiming “low prices” and “deep discounts.” But how can we determine the value of a discount if we’re unaware of the average retail markup? If those jeans are priced 200% above wholesale, does a 15% discount really seem that generous? (See also: Party Like It's 19.99: The Psychology of Pricing) That's why we offer a haul-off service where a member of our team will remove any old furniture you want to replace.The holidays typically bring a rush of retail shopping. We know how difficult it can be to get rid of a bulky item like a sofa or bed and substitute it with a new one. Unlike some retailers, we never outsource our shipping to third-party companies. Plus, you can get free same-day delivery if you spend $500 or more. We can deliver your furniture in as little as three hours on the same day you purchase it if you live in the Houston area. That means everything you see in our stores during the Memorial Day Super Sale is in-stock and available for you to take home TODAY! Here at Gallery Furniture, we never put our items on back order. Remember, these savings are only available for a limited time! Why Choose Gallery Furniture? Visit one of our showrooms today to see our amazing furniture discounts for yourself. We've reduced hundreds of items in our Houston showrooms with massive discounts on recliners, stylish accent chairs, sectional sofas, power lift chairs, motion furniture, and more! You can also find Made in America furniture that supports America jobs and the economy. Gallery Furniture's Memorial Day Super Sale brings you incredible markdowns and huge savings on our high-quality furniture. Incredible Markdowns During Our Memorial Day Super Sale! Take advantage of some of Gallery Furniture's biggest savings of the year.
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