Cost price markup
- Thread starter asinghami
- Start date
What kinds of cues are you talking about Production or Custom?
If you are referring to custom cues then, its not only the cost of materials but you also paying for the knowledge and the equipment. In some cases you are paying for the name.
I hope this answeres your question.
I hope this answeres your question.
Cost = amount of people power, machine power, overhead and materials required to make something.
Price = Amount a person will pay for something.
Markup = The amount something changes in value between entrance into a business and when it exits.
The three are all important, but unrelated to you the end buyer. If it cost Joe Cue company $5000 to make a cue which has a $3 cue performance(hit, appearance, art), then it will be priced at $3. If Fred Cue company can produce a $5000 cue performance for a $3 cost, it will sell for $5000.
I would worry much more about a cue's worth. Worth is able to be determined off Ebay, if you can find it there or through Google with some research. Take those prices to your local cue dealer with the knowledge that he will charge more because, he can help you select the right cue based on hit, adjust/replace the tip, with shaft diameter or other minor tuning, should you not be completely satisfied.
Price = Amount a person will pay for something.
Markup = The amount something changes in value between entrance into a business and when it exits.
The three are all important, but unrelated to you the end buyer. If it cost Joe Cue company $5000 to make a cue which has a $3 cue performance(hit, appearance, art), then it will be priced at $3. If Fred Cue company can produce a $5000 cue performance for a $3 cost, it will sell for $5000.
I would worry much more about a cue's worth. Worth is able to be determined off Ebay, if you can find it there or through Google with some research. Take those prices to your local cue dealer with the knowledge that he will charge more because, he can help you select the right cue based on hit, adjust/replace the tip, with shaft diameter or other minor tuning, should you not be completely satisfied.
Most production cues allow a 20% discount.
The problem with markup is a lot of people don't understand it.
If a retailer buys something for $100 and marks it up 50% it will sell for $150. He will not be able to give you a 50% discount. If he did he would be selling it for $75. The most he would be able to discount it for would be 33%.
If you get a 20% discount you will pay $120 so the dealer is selling the cue for $20 more than what he paid for it. Now consider all of the expenses on his part and it really isn't that much.
People always complain about merchants marking stuff up 50% thinking that they are selling something for double the cost which is not true.
Anyways 20% is usually the most that you can or will get. If it is anymore consider it a real bargain. Now some dealers will not mark up the price increases on older stock so you may be able to pick up a cue that has gone up in price but since the cue was bought before the price increase you will get a "larger" discount compared to the new price.
Hope this helps.
The problem with markup is a lot of people don't understand it.
If a retailer buys something for $100 and marks it up 50% it will sell for $150. He will not be able to give you a 50% discount. If he did he would be selling it for $75. The most he would be able to discount it for would be 33%.
If you get a 20% discount you will pay $120 so the dealer is selling the cue for $20 more than what he paid for it. Now consider all of the expenses on his part and it really isn't that much.
People always complain about merchants marking stuff up 50% thinking that they are selling something for double the cost which is not true.
Anyways 20% is usually the most that you can or will get. If it is anymore consider it a real bargain. Now some dealers will not mark up the price increases on older stock so you may be able to pick up a cue that has gone up in price but since the cue was bought before the price increase you will get a "larger" discount compared to the new price.
Hope this helps.
Do not know for sure about cues, but in the guitar and most other retail, it is retail list price minus 50% is dealer cost. This is "A" mark. "B" mark is 40 % of list price. Of course there are other discount for quanity ordered and close out items.. So it is possible for a dealer to get a 500.00 list item, for 250 minus 10% for quanity and cost is 225. So a dealer can sell this 500.00 item for 350.00, you get 150 off and he still makes 150 profit. Some companies I have done business with some major guitar companies that give 50% of list, then 25% off that and free standard freight shipping when a certain quanity. So it depends on companies and products as it does vary.
Thanks for the information. The last comment was great. My next question would be if the dealer is getting it (for example) $250, then how much do you think the manufacturer is making in on it. I'm still referring to production cues. If the MSRP was $500, dealer bought it for $225 and sold for $350 how much it really cost to make? and how much does the maker mark it up?
Wow
I know a person that owns a large import business and his markup is between 300 & 400 percent. His business is wholesale no retail at all. Mostly floral supplies and christmas ornaments. I am stunned that a company can survive on such a meager markup as 20 percent!
Dan
I know a person that owns a large import business and his markup is between 300 & 400 percent. His business is wholesale no retail at all. Mostly floral supplies and christmas ornaments. I am stunned that a company can survive on such a meager markup as 20 percent!
Dan
Again I am not sure about cues, but a example of mark up is, a cup of coke at McD's .03 for syrup and water plus a .05 for the cup. You do the math....big mark up. My guess is if a maker sold a cue to a dealer for 225.
Their cost, including labor and materials, probably about 45 to 75 dollars and even less for imports.
This is where you have to look at American Made verse Asian import. I do not think ANY of the Asian import Production cues that are selling for more than around $350 are worth what you are paying for. I have said this many times and some do not agree with me, however, these cues do not stack up to the quality of American made production cues. I own a Pool Hall, I sell both American Made and Asian Imports, I do a large volume of cue repair and I build limited Custom conversion Cues. In my opinion based upon that, I see more problems with the Asian imports by far than American made products. The finishes are fragile, and many times the wood that appear to used in the models is stained or even painted and then finished. The adhesives are temperature resistant and have a tendency to allow parts to come loose very easily. These cues also have a problem with warp age long term, which I think may be due to the different environments that they are made in, and shipped to their final destination through.
Another factor that should be considered is there is not now, and never will any collectibility in these imports, they are like a new car drive it off the lot and the value only falls. Below are some of the cues that I feel fall into the above category.
1) Predator Butts not Made in the USA, not bad but way over priced for what they are.
2) Lucasi cues, while they are top of line for imports they are also way over priced for what they are.
Then comes all the lower end Asian production cues that sell between $40 and $350.
Just my thoughts!!!!!:smile: