It’s a balancing act.
Very generally speaking it’s in the rough neighborhood of double or triple TOTAL actual costs in order to be doing well consistently.
Truthfully, it’s what the market will bear. If it’s a highly desirable item, most people will be willing to pay ten or more times the actual cost. It it’s a unique item and you’re the only one who has it, the sky is the limit (theoretically).
Just one example would be the fantastic financial success of Apple even tho there are tons of computers selling for significantly less. Not everyone is willing to pay Apple-type prices but enough people certainly are. Enough to keep them more than just viable, financially speaking.
In addition to desirability there is also quality. If I’m buying a T-shirt at a festival or store, I’m certainly willing to pay much more for a Hanes or Fruit of the Loom as opposed to a cheaper flimsier one which will be all stretched out or shredded after a few washings.
It’s really difficult to generalize with so many variables and so little specificity.
I’ve been to numerous trade shows and done vending at street fairs as well as a holiday merch cart at a Mall. The wholesale sellers at trade shows are generally aiming to handle products which can most easily be sold at retail for 2–3 X the wholesale price.
But they also have to factor into the pricing structure to provide volume discounts for retailers, thus lowering the per item cost even further.
Like I said, it’s all a balancing act and dependent upon what the market will bear (and which market you’re talking about).
This is but one of the many reasons why getting an MBA from Wharton comes in really handy :). Retailing can be a headache-inducing field. I dabbled in it a bit but decided it’s not what I wanted to do for a living.
Just give me a roomful of screaming jumping elementary kids and I’ll have them squared away and straightened out in no time. Much rather do that than deal with making a living from retail sales.
But that’s just me. Other people love the challenge of buying and selling and would get an instant migraine from a classroom full of kids. Go figure.
:D