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Used to work in garden/hardware supply company. The best selling product cost $16 for manufacturing and delivery to our warehouse from China. They would sell in [national hardware chain] for $699. It was about a 40% markup in store, the rest of that $699 was eaten up by warehousing, shipping and staffing costs. If you couldn't move that product in a reasonable timeframe then you'd start losing money on warehouse costs.
I figure most items I've purchased are 40% profit, 50% warehouse/shipping/staffing, 10% manufacturing/import.