Should i set a fixed price % profit margin i would like on my products or manually determine the cost price by comparing to other sellers on a regular basis?
For example - I have 150 products within the same niche, I would like to make 20% profit from the sales price ex tax. So if i sell £100,000 a month worth of products i'm guaranteed to make £20,000. However some of the products i know i can make more than 20% because of the competition prices so they may be marked up 28% or 30% for example.
What concerns me in the above example is that i'm the one making the decision to mark them up by more than 20%. I would be happy with 20% but if i can make more money then even better. That however violates Scale and concerns me. How can i get it to work without me and maintain the profit margins?
The only answer i can think of is that every time we re-purchase stock, we set the percentage at 20% and that's the price. If we paid less for the stock the sales price goes down, if we paid more the sales price goes up.
I'd be interested to hear anyones thoughts on this.
For example - I have 150 products within the same niche, I would like to make 20% profit from the sales price ex tax. So if i sell £100,000 a month worth of products i'm guaranteed to make £20,000. However some of the products i know i can make more than 20% because of the competition prices so they may be marked up 28% or 30% for example.
What concerns me in the above example is that i'm the one making the decision to mark them up by more than 20%. I would be happy with 20% but if i can make more money then even better. That however violates Scale and concerns me. How can i get it to work without me and maintain the profit margins?
The only answer i can think of is that every time we re-purchase stock, we set the percentage at 20% and that's the price. If we paid less for the stock the sales price goes down, if we paid more the sales price goes up.
I'd be interested to hear anyones thoughts on this.
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