I'm a manager in a big box store

a reply to: Dan00

better

originally posted by: Aeshma
a reply to: Dan00

Complicated question merely in the aspect where i currently work tile is a seperate department. On average anywhere from 0-20% mark up. A lot of the time certai products bring the company little to no profit if yiu have their installers do the work . The benefit at tbat point beckmes brand loyalty. If the home owner performs the project themselves the benefit for the company is in the accessories. Tools, mortar, hardy board, tile. It balances out in the end. Like i said not what i do specifically but an answer none the less. One tile vs another could mean substantial gain for the company anything with a special price that sounda like a great deal for the customer usually is a great deal for the retailer.

Are you talking points of margin or percent of cost? fifty points of margin is actually a hundred percent of markup from cost. Usually big stores and businesses use points of margin.

a reply to: rickymouse

I am so changing the tile under my own power.

This thread has been invaluable.

You mentioned your store earns its profits through "opportunity" as opposed to volume. Could you expand on this? Most people I know only go to big box stores to look at stuff and then they buy it online for the cheapest price they can find. With such a price focused customer base, what types of opportunities do you exploit (and I don't mean that in a bad way)?

I worked retail all through my high school years at Best Buy during the good ol' days when profits were soaring and new stores were opening everywhere. I was paid very well for a high school kid and loved my job. I sold cell phones and since we weren't on commission and sold 5 different carriers, I was able to really get customers the services and devices that was best for their individual or family needs. Sometimes I actually miss it!

a reply to: skepticalguy

That he who is looking in store for stuff to buy online may pick up a shiny screwdriver from a promo display which has 200% mark up. That's an opportunistic sale.

a reply to: Dan00

Asda sell tiles and other DIY products? well i never thought

And here's me going to Homebase, B&Q, Wickes etc etc for my DIY purchases, no wonder the prices are high, i thought they had a monopoly.

20% mark up on cost. I wouldn't speak on basis points to a general audience. We would leave more questions than understanding.

a reply to: rickymouse

a reply to: skepticalguy

In many instances online retailers can offer slightly less in price on some of the items I offer in store. The. Benefit of course becomes personal inferaction. We offer service, advice and many of the materials I offer in store would become extremely expensive to ship rendering the savings inconsequential. On top of this I offer a local operation in most communities where more material can be picked up or returned on a daily basis.

Many items I sell become opportunities as soon as a customer purchases a project, and nearly every purchase will become a project simply having a customer enter the store. I offer everything you need under one roof, including rentals of tools to professional contractors.

a reply to: Aeshma

Blue or orange?

originally posted by: Aeshma
20% mark up on cost. I wouldn't speak on basis points to a general audience. We would leave more questions than understanding.

a reply to: rickymouse

Sometimes big stores have a separate division of their company that buys the product, making good deals utilizing their high volume. Then they then sell it to the stores. This system keeps the employees and managers from knowing the true cost of the product and boosts the income of the corporation or sometimes the purchasing division is a separate corporation altogether. I was a salesman for one of the big companies sort of like Lowes years ago and would talk to the manager on how things worked. It was very interesting. I investigated this tactic over the years. It is like IGA stores, they have a buying division that does quantity buying. So do most big chain stores.

a reply to: rickymouse

This is what i meanr when i say the items that look like great purchases for the customer often times make the business the most money. Large lot quantities are purchased at once, distributed and sold off sith no intention of replenishment. Best price for the business, no logistics to ressupply; labour, ordering, shipping, storage etc.

It's how most of us run these days, purchase large quantities store in distribution centers and "sell" to the stores giving an impression of cost and the ability to influence management in different areas with a revolving cost. Middle management is the most suceptable to this affect.

a reply to: Woodcarver

Multinational.

originally posted by: Aeshma
a reply to: skepticalguy

In many instances online retailers can offer slightly less in price on some of the items I offer in store. The. Benefit of course becomes personal inferaction. We offer service, advice and many of the materials I offer in store would become extremely expensive to ship rendering the savings inconsequential. On top of this I offer a local operation in most communities where more material can be picked up or returned on a daily basis.

Many items I sell become opportunities as soon as a customer purchases a project, and nearly every purchase will become a project simply having a customer enter the store. I offer everything you need under one roof, including rentals of tools to professional contractors.

Are u telling us that u sell drugs? That's against the tc's here, maaannn!

a reply to: SheepDipped

Hey, that's like your oppinion man.