From the course: Running a Profitable Business: Understanding Financial Ratios

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Mark-up vs. profitability: Harry Winston vs. Walmart

Mark-up vs. profitability: Harry Winston vs. Walmart

From the course: Running a Profitable Business: Understanding Financial Ratios

Start my 1-month free trial

Mark-up vs. profitability: Harry Winston vs. Walmart

“

- Jim, do you recall when we traveled to Hong Kong together? It was about 10 years ago. - I do, I remember it well. - We stayed on the Kowloon side in a hotel right next door to the Peninsula Hotel. - The Peninsula? Isn't that the hotel that picks its customers up in a Rolls Royce? - Yeah, that's the hotel we didn't stay in. Now off the lobby of The Peninsula is a set of very nice shops. One of them is called Harry Winston. - Ah, Harry Winston, the famous luxury jewelry store. - That's right, that's exactly right. Now how much does a luxury jewelry store mark up its products? - About 100% so if Harry Winston buys a diamond ring for $20,000, the selling price will be marked up to about $40,000. - Wow, so by comparison, how much does Walmart mark up its products. - Walmart marks up its items up only about 33%. So if Walmart buys something from $75, the selling price will be marked up to $100. - The Harry Winston…

Contents