blake jones
UKC Forum Member
Registered: Nov 2005
Location: tupelo ms
Posts: 505 |
quote: Originally posted by Oak Ridge
Jay,
So what you are telling me is that Diamond is giving a 50% "discount" to TSC or Big R for the feed they buy?
I keep close tabs on feed prices, and have for quite some time, since I was buying feed 22 ton at a time.
One of those stores is having a "feed sale" this weekend. They are selling the Diamond 24/20 for $17.99 per bag. Now I know that shipping is currently running between .75 and 1.00 a bag...so that brings the FOB price down to 16.99 a bag.
If what you say is true, somehow TSC is buying that same bag of diamond for around $8.50 a bag. I find that very, very, hard to believe that Diamond is selling TSC feed at a loss....
I'm sure that there are some items in the inventory at TSC that are marked up by 50%, but feed, be it dog food, or goat feed is NOT marked up by %50 anywhere.
you might want to go back over your figures. if retail is 17.99 a bag and there is a 50% markup from wholesale, wholesale price would be 12.00 a bag. 50% of 12.00 is 6.00. if wholesale is 8.50 a bag then 17.00 a bag would be a 100% markup. my son works at a local supply store and their mark ups are different depending on what they are selling. clothing has the largest markup, sometimes over 100%. not sure about feed. would figure it would be around 30%.
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