What is your ‘Keystone Margin’? A look at the cost of products, markups and margins from a producers point of view.
Knowing the margin that keeps your business ticking, your ‘keystone margin’ you can then approach inventory purchases with this in mind. You will not always be able to meet this figure when you are searching for products to sell, but knowing it and being able to calculate whether you can achieve it when you are presented with a price list, possible in a currency other than your own is vital.
What is your experience? Have you always known whether the products you offer are going to bring you the profit needed to sustain your business? It would be great to hear your stories, let me know via the comments.