While it is important to provide buyers with cost information for your products, we appreciate that it often isn’t as straight forward as having one single cost for all market segments or retailers.
In the cost section of the add a product function you will find several inputs relating to cost:
- Unit Cost to Retailer: This is the key metric that is shown in your product listing. We suggest that you enter your standard unit cost, prior to applying discounts or volume price breaks. The unit cost should also be the pricing figure without VAT - if you apply VAT to this figure, an inaccurate gross margin (GM%) will be calculated. Please note that this information is kept safe and secure on our platform, and is only visible to buyers signed up to our website who have been vetted and verified, and inaccessible to fellow suppliers.
- Volume Discounts Available: Select 'Yes' if you offer volume discounts. Selecting this option means that when a buyer searches for a product in a certain cost price range, products with unit costs up to 20% higher than their range maximum will still appear in their results.
- Pricing Comments: This comment box allows you to give any further details to buyers on your pricing, and they will appear on your product listing. Your pricing comments may include details such as volume discounts being available, that your unit pricing can vary depending on specific factors, or a request for the buyers to contact yourself through a reach-out for further discussions regarding pricing negotiations.
- RSP (Including VAT): This is the Recommended Sales Price of your product, sometimes referred to as 'RRP' - in other words, the price at which you recommend a single unit of your product to be sold at by the retailer. Ensure that you include the VAT in this pricing figure.
- VAT Status: 'Value Added Tax', is the tax of goods and services. There are three options to choose from in this section; Standard Rate (20%), Reduced Rate (5%), and Zero Rate (0%). The level of tax added to your product is dependent on what type of product it is. Please note that the VAT rates are according to that of UK laws - if you're struggling to identify which VAT rate applies to your product, please feel free to contact us at firstname.lastname@example.org and we would be glad to help you.
- GM%: When you save your product, a GM% (gross margin) will automatically be calculated - this is the percentage difference between your Unit Cost and RSP. This information will be visible to buyers who view your product. You can preview this information on the right-hand side when you are editing your product listing, and click 'Full Product View'.