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Re: I can tell ...
Posted by '2Slow' on 03 Dec 2008 @ 10:15

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2SlowJoined: January 2006
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you that if a tyre has a list price of say Ł100 and the retailer buys 12 sets or more, they will get up to 20% discount on the list price i.e. Ł20. Most internet retailers discount the list price by 5% bringing the gross profit on the set to Ł15. You've then got to take off the cost of delivery to them from the importers (say Ł2 bulk rate) Ł5 for delivery to you (someone has to pay for the free delivery) and about 1.5% from the the price you pay for the tyres including VAT for the credit card charge that they have to pay. All in all that leaves about Ł6.25! You then have to take off a percentage of the running costs of the business eg: rent, rates, insurance, electricity, telephone, advertising, staff wages, bank charges and interest, national insurance, accountancy fees - and so the list goes on. So for those that think there's huge profits for the retailer - think again! The tyre importers profit margin is however something completely different.

The margins for other components from the likes of Righetti Ridolfi? If you spend over Ł75K per year you might get the equivalent of 30% off the retail price. However, all the above expenses apply to these products as well PLUS the cost of transporting the goods from Italy to the UK by lorry which is very very expensive. For those that think 30% is a big margin think again - only supermarkets (with Ł1M+ turnovers per week) work on those types of margins. I should also add that margins on chains are TINY!

Message Thread:

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Re: kart wholesalers by 'tonyracer' (02 Dec 2008 @ 22:13)

Re: kart wholesalers by 'DavyBoy' (03 Dec 2008 @ 9:18)

Re: I can tell ... by '2Slow' << You are here!

Re: I can tell ... by 'DanXP1' (03 Dec 2008 @ 14:07)

Re: I can tell ... by '2Slow' (03 Dec 2008 @ 15:31)

Re: I can tell by 'dynamax' (05 Dec 2008 @ 11:33)

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