Finding Gross Margin

To find the retail price for my two products, I first had to know what my gross margin would be.

Our grocery store is fairly high end, but we didn't want our prices to be the most expensive out of our competitors. To find a more appealing gross margin on my products, I found the gross margin of one our competitor's same product. The way I did this was to find the percent change of the wholesale cost compared to their retail price. Target's gross margin, about 60% for the products, could easily be reduced while still making enough profit. I decided to lower this percentage to 45% to make the prices more appealing to consumers. Once I tested this gross margin out to find the product, I compared the retail price to that of the other stores and found that the price wasn't the cheapest nor the most expensive, which is what I was hoping for.