Going Retail: Critical Issues and Strategies
To Succeed in the Retail Arena
Presented by the Hawaii Food Manufacturers Association
Pineapple Room, Macy’s
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Margin Planning Chart
Cost
to Produce Product
Manufacturer’s
Margin
Freight
out of
Distributor
Mark-up – 25%
Retail
Mark–up – 40%
Cost
of Product on the Shelf (Customer/Consumer Price – Start here to make sure your
price is competitive with similar products)
Other Costs to
Incorporate in Planning
Brokers Fees – 5%
Food show Participation
Sampling / Demo Cost - $124 for four
hours
Advertising
Sampling – Free Product