Bulletin – June 2012 Description for Figure 1 in article: Costs and Margins in the Retail Supply Chain
This figure shows the decomposition of final sale prices for retail goods into the stages involved in moving it from manufacturers to consumers. It shows that final sale prices are made up of three main components: first, the cost of goods (which include the cost of domestically produced goods and imported goods, along with transport and tariff charges); second, wholesalers' gross margins; and third, retailers' gross margin. Gross margins for both retailers and wholesalers include their costs of doing business as well as their net margin or profit.
[End description.]