When someone gives 50% to 60% off the retail price and doesn't own any merchandise, I doubt that they are making any money. Mark-up, yes, there is in fragrances, but that much mark-up, no way. Plus, getting small orders from suppliers means that the shipping/handling charges for small orders mean that, most likely, their discount from the supplier is less . . . or if the supplier drop-ships it, they charge for it.
I would like to see more than a verbal statement that the two businesses, especially the fragrance one, are making a profit.
It sounds to me like a version of the old story where the shoe store sells shoes at $1.00 under cost but says he makes up for it on volumn.
Alan J. Zell, Ambassador Of Selling
A member of www.salesbureau.com cadre of speakers, coaches, and trainers.
Winner of the Murray Award for Outstanding Achievement in Sales & Marketing
Chairman, PNW Sales & Marketing Group