When I had a retail store, we had two markups. The big ticket items usually had a markup of just 25 percent, while low priced items had a 40 percent markup. However, major purchases, such as boats, outboard motors and trailers, only provided us with a 10 to 15 percent markup. Those items were floor planned, which meant the manufacturer paid the interest on the bank loan made to purchase them for inventory. Floor planning only lasted six months, therefore, if you didn't sell them all within that period you had to shell out the interest to the bank, which destroyed any possible profit in a very short time.

Gary