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Do you predict that brands will begin offering better margins than the widely accepted 2.5 points?

Many Brands give a Recommended Retail Price (RRP) to ensure that internationally the brand is competitively priced or standardised across all markets. This varies from a 2.5 to sometimes a 3 mark- up and therefore offers the retailer the same variety of margins that can be achieved by applying these different mark-ups. In these challenging times brands may well consider changing retail price architecture is not best practise to continue to attract the end customer. That means unless the wholesale is reduced the margins will stay the same. However you do control your mark-up and therefore your margin so it really is over to you!

Frances Card MD, Frances Card Consultancy

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