percent mark up
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percent mark up
Anyone know how much the suppliers of mechanical components such as gears, shafts, bearings, ect... mark up the price when they sell to vendors?
Mark up = Price - cost to the manufacturer.
I wonder how much profit the manufacturers in this industry is making.
Mark up = Price - cost to the manufacturer.
I wonder how much profit the manufacturers in this industry is making.
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For individual parts it is huge. For regular industrial customers or end users it is a 20-30% margin. Each step in the supply chain takes a cut tho. The margins go down some as you start working with volume.
If you are looking to get parts for a device to manufacture you will need to find a contact up the chain as far as you can. Volume speaks, but you have to be able to demonstrate to them that you WILL be using volumes of product. They just won't give volume pricing figures to joe blow off the street.
If you are looking to get parts for a device to manufacture you will need to find a contact up the chain as far as you can. Volume speaks, but you have to be able to demonstrate to them that you WILL be using volumes of product. They just won't give volume pricing figures to joe blow off the street.
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You're asking two different questions.
If you want to know the profits of a company, look up their finacial report. It will be listed there.
Markup included costs of doing business and profit. The actual formula is Price = Cost to manufacture + Expenses + Profit. For a company to stay in business it has to cover expenses - employee wages, benefits, utilities, shipping, building costs, regulatory costs and on and on. Markup must cover all that.
I have worked for a non-automotive company that would not look at a new market unless they could make a 10X markup on material costs. A machine that cost us $120,000 to make would sell for at least $1.2 million. Is that excessive? I don't know. The customers were willing to pay it because they benefitted from having our tools, and they felt that the ROI was acceptable.
How would knowing a little part (markup) of the big picture help you?
If you want to know the profits of a company, look up their finacial report. It will be listed there.
Markup included costs of doing business and profit. The actual formula is Price = Cost to manufacture + Expenses + Profit. For a company to stay in business it has to cover expenses - employee wages, benefits, utilities, shipping, building costs, regulatory costs and on and on. Markup must cover all that.
I have worked for a non-automotive company that would not look at a new market unless they could make a 10X markup on material costs. A machine that cost us $120,000 to make would sell for at least $1.2 million. Is that excessive? I don't know. The customers were willing to pay it because they benefitted from having our tools, and they felt that the ROI was acceptable.
How would knowing a little part (markup) of the big picture help you?
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Originally Posted by 76supercab2
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If you want to know the profits of a company, look up their finacial report. It will be listed there.
If you want to know the profits of a company, look up their finacial report. It will be listed there.
Originally Posted by 76supercab2
.
Markup included costs of doing business and profit. The actual formula is Price = Cost to manufacture + Expenses + Profit. For a company to stay in business it has to cover expenses - employee wages, benefits, utilities, shipping, building costs, regulatory costs and on and on. Markup must cover all that.
Markup included costs of doing business and profit. The actual formula is Price = Cost to manufacture + Expenses + Profit. For a company to stay in business it has to cover expenses - employee wages, benefits, utilities, shipping, building costs, regulatory costs and on and on. Markup must cover all that.
Thanks
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Originally Posted by Torque1st
For individual parts it is huge. For regular industrial customers or end users it is a 20-30% margin.
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