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I'm Mike Campbell, with Doggie Styles, in Beverly Hills, California, and I'd like to
talk a little bit about how to price crafts. A lot of the merchandise that we have, comes
from very small vendors. These are all handmade items, handmade little dresses, and different
things for the dogs, handmade beds, etc. I guess these could be considered crafts. Generally,
the most important thing, is for the vendor to understand how to price their own product,
what they're making. They need to make a profit on that. For most retailers, it's very easy.
The standard markup, is called Keystone Markup, and that's just doubling the wholesale price,
so if somebody comes to me and they have a product that I want to carry in the store,
and the wholesale price of that product is five dollars, I'll sell it for ten dollars.
Out of that ten dollars, it's not all profit. Obviously, it goes to my overhead. It goes
to my sales costs, etc, so my profit may actually only be one or two dollars, but that's the
easiest way to mark things up. Now, sometimes you'll have products that the vendor will
come in, and it's something that really is spectacular, and maybe they're happy with
a smaller profit on that, which allows me to mark things up a little bit more. There
are other items, like food items, which are generally marked up much less, but the average
markup is a one hundred percent markup, Keystone Markup. Five dollars is placed on the floor,
for sale and retail, at ten dollars. I'm Mike Campbell, with Doggie Styles.