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Manufacturer Price Vs Retailer Price ---- Huge Differences Why?

Updated on November 7, 2010

Nike Football Retail Price online

Manufacturer Vs Retailer's Price

I am into trading business. Supporting mid size and large companies to get manufactured their products on Top Quality at minimum pricing. I wonder about the huge difference of amount that a buyer have to pay over a manufacturer price. The picture above is of Nike Total 90 Football. The price mentioned is US$140 and its reduced price is now $119.99. May be you think it is good discount. But for me if i do costing from manufacturer end, i can calculate its cost as US$8.00 maximum. I manufactured JC Penney T shirts at US$2.00 per shirt while its retail price was US$9.00. Similarly the top bedsheets brands made in factories here have manufacturer offer price of US$10 while they are sold as $55 on retail. Though it is not possible to develop a ratio between manufacturer and retail price but it is obvious that the difference which a buyer has to pay is too huge to imagine. It is even more than the cost of the product. Do you think it is justified?. I think we should work on some ideas to link manufacturers with retailers and buyers. What do you think?.

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    • Gypsy Willow profile image

      Gypsy Willow 6 years ago from Lake Tahoe Nevada USA , Wales UK and Taupo New Zealand

      Good points but perhaps you should expand on them. The retailer has enormous costs so can be forgiven, perhaps some of the profit cannot be justified

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      mirfsd 6 years ago

      Yes i can understand about retailers but all freights, taxes, profit margins of each and everyone in this chain is shifted to the buyer end. The need is of some discrete ideas especially in this recession when people are struggling for survival.

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