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What would be considered an average profit (in £’s not {e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}) on a washing machine retailed through an independant outlet?
Just interested as i have never been involved in retailing appliances.
Andy 😀
Re: Profit margins
depends how you buy as well and where from, not always buying direct from the manufacturer is the cheapest either. on a 300 quid middle of the road washing machine you would be looking around the 70-80 ish profit.
Re: Profit margins
andy2 wrote:What would be considered an average profit (in £’s not {e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d})
It’s really not possible to quote £’s as it depends on your commitments into retailing for your ‘outlet’. But a general ‘rule of thumb’ rate is 12{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} at best.
Re: Profit margins
12{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}?
Let’s say you buy a B*sch for £200. £235 after VAT. Plus 12{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} is £265. Which is pretty dire, unless your going to charge for delivery, installation etc, and make some money on that.
There’s no point in running a business like a charity, unless your TMS
Re: Profit margins
I generally make around £60 per machine, delivered,installed and the old one disposed of. I haven’t got a shop but usually keep either a Creda or Whirlypool?? on the van. All pretty basic but most people like that
RobRe: Profit margins
Goatboy wrote:12{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}?
Indeed so and I challenge you to prove otherwise ❗
For example :-
Small shop staffed by say 2 people, a couple of engineers out on the road. Retail sales at best selling just one or two machines a day. Small buying power, having to compete with the sheds up the road. Wage bills, business rates, insurances, advertising, power, light and teabags plus vans and VAT……..
…… yes that equals 12{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} at best. :lesson:
However in many cases selling machines forms only part of the comprehensive service that indies provide. And selling new machines is often a ‘break even’ scenario with little or no profit on machine sales.
Eastlmark I’m sure will vouch for that, he gave up on that back last year I recall as indeed I did 20 years previously to him….lots of water under the bridge between times but nothing changes much in this game 😉
Re: Profit margins
Martin wrote:Indeed so and I challenge you to prove otherwise ❗
I’m sure that is the normal rate, but I’m not working for nothing. I might as well go and push tolleys around spazda car park.
I just put on a mark-up (usually around £75) that makes it worthwhile selling machines. And for that, we break our balls for the customers satisfaction! 😯
If they want to go to the shed for cheaper prices, they can have the cheaper service too.
How many times have we discuss putting value into the market? If anything is sold on price, in 10 years time the only shop left will be T*sscos, and every appliance will be Chinese. 🙁
Re: Profit margins
Depends on your`e overheads really as a bricks and mortar retailer with the higher overheads on average we look for £45 per hundred of the cost.
We will shop around for the best price in just the same way as we would if we were buying a holiday for example.The sole trader on the other hand who has a spare machine on his van or can nip into his local friendly distributor may well say okay I`ll do it for £35 per ton or whatever as I`m not really into selling machines but it`s another value added service I can offer my customer.
Like GB says There’s no point in running a business like a charity.
One of our suppliers has a good saying for retailers. ” Turnover is vanity but profit is sanity” just about sums it up 😉
Don
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