In Daily Nugget #88 we are answering another one of your questions! What is the minimum margin we will accept on a product?

As you have seen in Nugget #74 (How Do We Maintain a 20% Gross Margin), we have a general rule of thumb for 20%. If a supplier asks what margin we need, that is our answer. However, with every rule comes a few exceptions.

Exception #1: High Volume Products

Exception #2: Exclusive or Co-Exclusive Deal

This 20% margin works for us with the caveat that everyone’s appetite for risk and level of common sense varies. 20% works for us—but as usual, play around with the numbers to find your ideal margin. Listen below to find out more about our ideal margins.