[Alberta's Child]

There's a lot of confusion between "markup" and "profit margin" these days.

You'll notice quite a few things missing from that graphic between the $5.67 "cost" and the $14.00 retail price. I'll list just a few of them here:

1. Retail labor (sales employees, management, etc.)
2. Facility costs (rent for retail space, maintenance, etc.)
3. Security personnel
3. Employee benefits
4. Taxes
5. "Shrink" due to loss of product, theft, etc.
6. IT and other administrative costs

That barely scratches the surface, but you get the idea.

[Revolting cat!]

Absolutely. Still, the low margin percentage surprised me, and it’s probably much higher for upscale stores, and smaller merchants.

[RegulatorCountry]

Apparel margin expectations are in the sixties for the national retailers. Margin in this instance means gross margin. Their net is not so freely discussed.

[COUNTrecount]

Also, not all merchandise is sold at full price, therefore markdowns are factored into the price so that the merchandise is not ultimately sold at a loss.

Without making a profit businesses would fold.It’s what we call capitalism.

[Secret Agent Man]

mall stores have higher markups than standalone, mall rents are way more.

[Joe 6-pack]

You'll notice quite a few things missing from that graphic between the $5.67 "cost" and the $14.00 retail price. I'll list just a few of them here:

1. Retail labor (sales employees, management, etc.)
2. Facility costs (rent for retail space, maintenance, etc.)
3. Security personnel
3. Employee benefits
4. Taxes
5. "Shrink" due to loss of product, theft, etc.
6. IT and other administrative costs

You're also not factoring in the palm-greasing, back scratching and bribery of local government officials to overlook the building codes of the factories.