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View Full Version : Curiosity question: Anyone know what the markup is on equipment?


sstchur
04-29-2010, 07:56 PM
I wonder if anyone happens to know, typically, what the markup is on most tennis equipment?

Specifically, racquets and stringers.

In other words, if TW is seller a racquet for $150, what are they buying it for?

What about stringing machines?

Back in high school, I worked at a local "mom and pop" sports store. We didn't have much in the way of tennis equipment except for Gamma branded stuff. I know for a fact, that that particular store just doubled.

If they bought a Gamma racquet for $70, the list price on the floor was $140.

I wonder what it is, typically, these days?

JimmyNeutron
04-29-2010, 09:40 PM
Yes, this is something I'm very interested in getting info on too. I don't care if the store I'm buying it from makes 100%, 200%, etc...% profit. Just curious what's the profit like on something like a tennis racquet that sells for $199 like a BLX.

Any help would be greatly appreciated!!!

chrisplchs
04-29-2010, 09:56 PM
I do know the answer to this but there is no way I am going to say what it is

JimmyNeutron
04-29-2010, 10:42 PM
From my retail exp, accessories always have at least 100% markup.
Ex. Grip cost $1.00 Wholesale...stores will sell for $2-$4 each.

The higher the cost of the item, such as racquet, the markup drops. However, the profit is more.
Ex. Racquet sells for $125 Wholesale...stores will sell for $200. Markup isn't as high, but the profit made from it one racquet($200 - $125 = $75 profit each) is much higher than the profit sold from a few grips ($4 - $1 = $3 profit each).

For drop-shipment item such as a Prince 6000, the profit is there, but lower since the stores do not typically carries these in stock and Prince will do drop-shipment to the customers from the factory itself. Also you don't sell a Prince 6000 as often as a grip or raquets. So, my guess would be the profit on a Prince 6000 would be about $300-500 since the store really doesn't have to offer end-user support for the machine. The $300-$500 is just there to entice the store to sell Prince stringers.

bsandy
04-30-2010, 04:42 AM
I get Youtek Radicals from a dealer for $115. He's not losing money.

I talked to another Head dealer that said he could get all three Star racquets for around $350 together.


My guess is:

Cost = List x .6

That's a pretty standard retail calculation. (My ex sold cabinetry and housewares in a small shop for years)

. . . Bud

HitItHarder
04-30-2010, 05:15 AM
Markup on most retail consumer items starts around 100% and goes up depending on things like demand and availability. Things such as jewelry can climb as high as 400%-500%.

Sporting goods isn't all that different than other types of specialty consumer goods. JimmyNeutron had a pretty good estimate above.

Distributors and sellers typically have minimum pricing requirements in their contracts which protects the price and is the reason most retail pricing to the consumer is similar.

YULitle
04-30-2010, 09:49 AM
From my retail exp, accessories always have at least 100% markup.
Ex. Grip cost $1.00 Wholesale...stores will sell for $2-$4 each.


+1
This is my experience as well. Initial markup is 100%, then subsequent discounts bring it lower as inventory is liquidated. This was for most things, accessories, racquets and clothing.

Tennis balls, on the other hand, had very slim margins. I'm talking markups of $.05-.15 per can.

Lakers4Life
04-30-2010, 10:12 AM
+1
This is my experience as well. Initial markup is 100%, then subsequent discounts bring it lower as inventory is liquidated. This was for most things, accessories, racquets and clothing.

Tennis balls, on the other hand, had very slim margins. I'm talking markups of $.05-.15 per can.

I just want to add, that tennis balls are considered a consumable. Something that does not last very long, especially when you play tennis. I remember reading somewhere, a tennis store will sell 5 cases of balls to one racket sold. Which equates to about $6-18 profit.