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Q: Retail vs Wholesale Pricing of High-End Silk. ( No Answer,   0 Comments )
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Subject: Retail vs Wholesale Pricing of High-End Silk.
Category: Business and Money
Asked by: luxuria-ga
List Price: $45.00
Posted: 17 Apr 2004 16:50 PDT
Expires: 17 May 2004 16:50 PDT
Question ID: 331896
I am starting a small business importing silk from Thailand. I want to
sell the silk both retail and wholesale.

I want to know what is the typical price difference between the retail
and wholesale for high-end expensive fabrics.  Eg. if I price the silk
at $50.00/yard RETAIL then should the WHOLESALE price be $25.00/yard?
In other words, is wholesale usually 50% less than retail? Is that
typical?  Or is it typical that wholesale is 35% less than retail? Or
is there a range?

I found a couple of items on the Internet that relate to this:
http://instruct1.cit.cornell.edu/courses/cuttingedge/sourcing_matl/03sourcing.html
This article seems to suggest that wholesale for fabrics is 30% to 50%
less than retail. Although I was confused by the term that they use,
"Wholesale Retailers".

I also found this article:
http://www.franklinreport.com/NY/Categories/InteriorDec2.html#4
This suggests that in New York interior designers charge 50% over the
price for which they get the fabric. Or if those designers are
travelling outside of NYC then they charge %100 over what they pay
(and I assume they are getting the fabric for wholesale prices, but
I'm not sure).

These two articles are helpful, but I want more specific information. 

I don't know if it makes a difference to the answer to my question,
but I envision the primary market for this silk to be for apparel. I
think a secondary market will be as home furnishing fabric (for drapes
or pillow covers or seat upholstery, etc).

Please note, I am not trying to understand price structures for a
low-end market--cheap silk from India or cheap cottons, etc. I'm
trying to understand the pricing structure for higher-end fabrics.
Also, please note that I don't need info on what other competing
expensive silks cost retail, etc---I have that information. I just
want to understand the DIFFERENCE in prices from wholesale to retail.

Thank you!
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