Average Industry Margins

So, you might be wondering what’s an average margin for my industry? Well I have done a little bit of research for you. Now, you’re going to have to do some of this on your own if I don’t cover it in this list, but did a little bit of research for you. I’ve come up with some direct margins for popular popular industries. Let’s take a look. So, subtract margins include the software industry, believe it or not a 90% and above, and that is actually a standard margin, pretty incredible. Apparel basics, apparel basics are kind of everything from basic t-shirts and pants and underwear and socks about a 50% markup is kind of standard on that.

But fashion apparel when you add the word fashion into it, that’s trendy or Cutting Edge or what have you, then all of a sudden, the margins go up to 75% or higher. Most services generally run about a 50% margin, that’s a nice margin. If you got some exclusive services or differentiated services, you can get even higher than that. Household products, 40% margins, a little bit less. Home furnishings again, around Furniture type products around 40% and grocery store margins actually run it about a 50% margin, you might say well that’s odd. God, I sell into a grocery store.

I have they marked my product at 50% and in most cases, that’s actually what they mark it up even though the grocery store itself runs it what they call razor-thin margins because they have so much constant running a grocery store. So that’s why the transition there between what you hear about grocery stores and with the reality of what you have to sell your product into grocery stores in order for them to sell it, right? And then prepared food. So, I love prepared food 70% plus margins on prepared foods. It’s actually a great moneymaker for grocery stores.

And I also think it’s important for you to understand kind of the other side of the equation which are what are typical retail margins? If you’re selling it a retail you need to know these. So, they actually vary, so you’re going to need again to do some research on understanding what retail margins are, right? Not just the direct margins that we went through but retail margin, and these would be things like, on the lower side are things like electronics, appliances and furniture, on the higher side where they get more than fifty percent margins would be things like fashion apparel, prepared foods, which was already covered, cosmetics, candy.

So those are all things that are higher margin retail where they would expect a higher margin from you because they want to capture more of the profits.