800 – 1000% mark up Research completed in 2019 found that margins on eyewear ranged from 800% to 1000%. Close behind, margins on luxury women’s fashion ranged from 400% to a massive 2000%. Obviously,  these prices were not determined on a cost-plus basis. It is more likely that they were set on a value basis. […]

800 – 1000% mark up Research completed in 2019 found that margins on eyewear ranged from 800% to 1000%. Close behind, margins on luxury women’s fashion ranged from 400% to a massive 2000%. Obviously,  these prices were not determined on a cost-plus basis. It is more likely that they were set on a value basis.Most prices are set on a ‘cost-plus’ margin basis. While this may be the best approach to setting the minimum price a product might be sold for, ‘value pricing’ is usually the best approach to setting the actual price a product should be sold for if profits are to be maximised. Value pricing involves: Setting the price of a product based on the value perceived by the consumer Recognising that the price can add value to a product In the case of eyewear and fashion, customers expect to pay and are prepared to pay higher prices…