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Companies => Custom companies => Topic started by: cricket247365 on January 30, 2011, 11:44:37 AM

Title: Cost of main stream brands for shops
Post by: cricket247365 on January 30, 2011, 11:44:37 AM

Hi All

Still doing a bit of research and wondering if you could be of help with the following questions:

1. roughly what discount do shops get on main stream brands like GM
2. if you were to start your own brand what terms could you expect to get if you were looking to put your kit in a local cricket shop e.g. sale or return, realistic % the shop would want to make.

Any help would be appreciated.

Title: Re: Cost of main stream brands for shops
Post by: Tom on January 30, 2011, 11:48:05 AM

The best way to research would be to go direct into the shop which you're targeting and ask. Very few are going to know or disclose anything on this forum.

Title: Re: Cost of main stream brands for shops
Post by: Mr Cricket on January 30, 2011, 12:12:24 PM

minus VAT at 20% then halve it, that should give you a rough guide on cost price

Title: Re: Cost of main stream brands for shops
Post by: uknsaunders on January 30, 2011, 12:29:17 PM

asked a mate who was a slazenger distributor - said much the same thing, 100% margin less VAT. ie. £50 bat would have a RRP of £100 incl. VAT. Alot of shops sell below RRP anyway, typically 20% from what I can make out.

Title: Re: Cost of main stream brands for shops
Post by: uknsaunders on January 30, 2011, 12:31:16 PM

and correct me if I'm wrong but the VAT is on the selling price, not the cost price, so it will have a greater impact on your margin.

Title: Re: Cost of main stream brands for shops
Post by: iand123 on January 30, 2011, 02:24:43 PM

If the business you buy from is VAT registered then yes you would have to pay VAT on stuff you order from them. Youd then also sell it with VAT to a customer

Title: Re: Cost of main stream brands for shops
Post by: Ayrtek Cricket on January 30, 2011, 03:16:38 PM

You would only sell it with VAT if your vat registered as well otherwise you will have to absorb the 20%.

Title: Re: Cost of main stream brands for shops
Post by: Ayrtek Cricket on January 30, 2011, 03:18:22 PM

This is why small businesses that are vat registered and turning over less than £66k are being hit by the vat increase as it cuts 20% off of their profit margins

Title: Re: Cost of main stream brands for shops
Post by: iand123 on January 30, 2011, 03:26:25 PM

Doesn't it only cut an extra 2.5% off from before? Wouldn't they have always paid the previous 17.5%?