Not exactly. Different product categories usually carry different profit margins. Smaller, fast-moving items often support higher margins, while bigger show pieces typically work best with moderate margins. Here’s how many retailers approach it:
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Sparklers, novelties, and snappers:
These are impulse buys, and customers expect to grab a handful. Retailers often target 70–80% margins.
Example: If a box of GLOW-N-SNAPS costs you $0.21, using an 79% margin:
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Larger items (big fountains, 500g cakes, canister shells, assortments):
These are higher-ticket items, and shoppers will often compare prices, so margins are usually more moderate at 55–60%.
Example: If IN GOD WE TRUST 18 SHOTS costs you $24.09, at a 60% margin:
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Blended pricing strategy:
If you carry two similar items at slightly different costs, you can “blend” the price.
Example: Two similar sized fountains work out to $14 and $17 each. Instead of pricing them separately, you might sell both for $16. This makes the buying decision easier for customers, or you can drop one slightly lower if you want to move inventory faster.
Takeaway: High-volume, low-cost fireworks can handle higher margins, while large cakes and assortments usually need to be priced more competitively. Using blended pricing can also help simplify customer choices and balance your margins.