How much do retailers make on appliances?

The typical profit margin on devices is 3 to 25%. Some items are below cost at the lower end to serve as loss leaders and attract business.

How much do retailers make on appliances?

The typical profit margin on devices is 3 to 25%. Some items are below cost at the lower end to serve as loss leaders and attract business. The margins of the devices vary between approximately 3 and 20%. Not much when you consider the general expenses of the store.

Restocking rates are pretty much standard across the industry. It is up to the buyer to do due diligence as to whether or not an appliance fits their space. All you had to do was ask for the specifications before buying. This is not the fault of the appliance store and they should not have to absorb the financial impact of it.

I think that the manufacturer has a margin of about 50% between the cost of manufacturing and the wholesale price. I think retailers have a margin of around 30-50%. As consumer spending and the housing market are slow to pick up, another initiative by Lowe's is to improve margins. Lowe's executives said they will focus on margin growth initiatives, such as offering more private label products and making structural changes to be more competitive in pricing locally.

The company has also installed new inventory management software to help individual stores better track prices. A retailer has attacked suppliers for making it “impossible to earn reasonable margins on kitchen appliances.” Overall, the gross wholesale profit margin for kitchen appliances is around 5% to 8% and the retail gross profit margin for kitchen appliances is around 25% to 35%.

Jayne Viviani
Jayne Viviani

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