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View Full Version : How much % of Revenue for Walmart?



evan5
09-03-2009, 02:31 PM
Does anyone happen to know how many % of your sale revenue walmart takes off a product you sell there?

Mr Zabe
09-03-2009, 03:07 PM
Do you mean the gross margin "mark up"?
I seem to recall that their average gross margin is around
5 to 10 percent.

mofizz
09-03-2009, 04:24 PM
Each individual product/package has its own margin requirement. Some beverage items are as high as 20+%, some are as low as 4%. Sometimes Walmart will even take a loss to get the traffic. Remember $4.98 Pepsi cubes for Memorial Day. They did that on their own. Zabe is correct however, delivering 9-10% margin will usually keep you in Walmart's good graces.

evan5
09-05-2009, 02:39 PM
Well lets say I am selling my product for 1.99. Walmart will take 10-20cents (5-10%)from each purchase to sell at their store?

Mr Zabe
09-05-2009, 07:03 PM
Well lets say I am selling my product for 1.99. Walmart will take 10-20cents (5-10%)from each purchase to sell at their store? To the best of my knowledge Walmart buys "goods' directly from manufactures. They sell these goods for a profit. Walmart does not allow vendors to sell (rent space for sale) goods for a percentage share of their gross revenues.

fusion
09-05-2009, 07:54 PM
Correct, Zabe. And they don't charge slotting fees, either (many stores charge a fee per facing to get the product on the shelf.

Here's a good article.

Why Wal-Mart is great for innovation | Company Activities & Management > Product Management from AllBusiness.com (http://www.allbusiness.com/company-activities-management/product-management/11564744-1.html)