The typical profit margin on appliances ranges from 3 to 25%. Some items are sold at a lower cost to act as a loss leader and draw in customers. The margins of the appliances vary between approximately 3 and 20%, which is not much when you consider the general expenses of the store. Restocking fees are pretty much standard across the industry.
It is up to the buyer to do their research and make sure that the appliance they are purchasing fits their space. If they don't, it is not the fault of the appliance store and they should not have to bear the financial burden of it. Manufacturers typically have a margin of around 50% between the cost of manufacturing and the wholesale price. Retailers usually have a margin of 30-50%.
As consumer spending and the housing market remain slow, Lowe's has implemented initiatives to improve margins. This includes offering more private label products, making structural changes to be more competitive in pricing locally, and installing new inventory management software to help individual stores better track prices. A retailer has even gone so far as to accuse suppliers of making it “impossible to earn reasonable margins on kitchen appliances”. Generally speaking, the gross wholesale profit margin for kitchen appliances is around 5% to 8%, while the retail gross profit margin for kitchen appliances is around 25% to 35%.
