Grocery Store
What to Include on a Sell Sheet

DO YOU HAVE A PRODUCT WE SHOULD KNOW ABOUT?

Mr. Checkout is a national association of independent wagon-jobbers and full-line distributors. We distribute product to approximately 35,000 independent stores around the country and are always seeking the next hot new product. If you have a product, we want to hear from you!

Do Big Box Stores Operate Off of Mark-Up or Margin?

Gross margin or gross profit is defined as sales minus cost of goods sold. If a retailer sells a product for $10 which had a cost of $8, the gross profit or gross margin is $2. The gross profit ratio or the gross margin ratio expresses the gross profit or gross margin amount as a percentage of sales. In our example the gross margin ratio is 20% ($2 divided by $10).

Markup is used several ways. Some retailers use markup to mean the difference between a product’s cost and its selling price. In our example, the product had a cost of $8 and it had a markup of $2 resulting in a selling price of $10. The $2 markup is the same as the $2 gross profit. However, the markup percentage is often expressed as a percentage of cost. In our example the $2 markup is divided by the cost of $8 resulting in a markup of 25%. (Some retailers may use the term markup to mean the increase in the original selling. For example, if the $10 selling price was increased to $11 because of high demand and limited supply, they would say the markup was $1.)

They are both different ways of getting at the exact same number. From our experience they tend to double the price or take slightly less when it comes to larger products. Typically the exception to the rule is on consumables where they are willing to take a lower price to compete.

DO YOU HAVE A PRODUCT WE SHOULD KNOW ABOUT?

Mr. Checkout is a national association of independent wagon-jobbers and full-line distributors. We distribute product to approximately 35,000 independent stores around the country and are always seeking the next hot new product. If you have a product, we want to hear from you!