OPEN-ness

I’ve had a theory for some time that sharing the margin openly with a client on a product will enhance sales.i used to get in lots of trouble when I worked at JT for discounting sales.. Anyone who either runs a business or has exposure to financial accounting knows that generally retail generates retail markups of 20% – 30% average. This means for example a pair of sunglasses costing £60 have a manufacturer price of approx £20-£30 allowing for the manufacturer and/or licensee to make some money before a distributor gets their mits on the item; the ‘Disty’ then sells to the ‘Retailer’ for about £40 allowing the retailer to sell at £60 to make a profit of £20.

It’s no big secret, it’s logical maths and usually applies to most industries or at least most retail elements of industry.

So if you openly declare your margins/markups and split the difference with your clients, surely everyone wins?

I like the new Argon 18 e114 – the integrated headset/stem/TT bar/steerer unit is patented as ‘ONEness’. Clever.

The new integrated Big Maggys mindset/ethos/directive unit is not patented and it’s in the shape of Pilotboy and Moffs and it’s called OPEN-ness…

Guess how much a Storck Aero2 is? If it retails to the bravest Big Maggys client for £6100 then surely it costs us about £4000? Guess who’s getting a discount …

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• December 15, 2009
• BY moffaman
• IN