We understand that pricing information is crucial when using our platform. Below, we provide a clear explanation of the pricing structure we employ.
Wholesale Price
The "wholesale price" is the price paid by the purchaser on our platform for a product. It includes not only the cost of the product itself but also the pick & pack costs. You can view the pick & pack costs for each product directly on the platform, allowing you to have a comprehensive understanding of the total wholesale price, including all associated fees.
It's important to note that in some cases, the wholesale price may be subject to discounts. These discounts are indicated by the original price being crossed out, with a new discounted price displayed. The supplier dictates the discount proportions.
Shipping Costs
Shipping costs can vary depending on the supplier and the destination country. They may or may not be included in the wholesale price. On our platform, we clearly indicate whether shipping costs are included in the wholesale price or if they are separate. Please review the product details to determine how shipping costs are handled for each specific item. Additionally, keep in mind that shipping costs can differ for different countries, so make sure to consider this when placing your orders.
Recommended Retail Price (RRP)
In addition to the wholesale price, we provide a "Recommended Retail Price" (RRP). This is the suggested selling price for the end customer. It is important to note that the RRP is not binding. As a buyer, you have the flexibility to set your own margins and determine the final selling price to meet your business goals.
We understand that calculating your own margins is crucial for your business success. Therefore, we advise you to recalculate the pricing based on your desired margins and costs. By doing so, you can ensure that the prices align with your specific business needs and objectives.
Calculating your own RRP's
As a webshop owner it is vital to calculate your own RRP's for your products. It is not advisable to blindly follow the RRP's given by the suppliers. Therefore below you find 3 different ways how you can calculate your own prices:
Method 1 Example (Including Shipping Costs)
Cost Price Including Pick & Pack: €10
Shipping: €5
Total Purchase Cost: €15
Own Cost Factor (example, 1.15): €15 x 1.15 = €17.25. It's important to decide on your own cost factor based on your business needs.
Break-even Point: €17.25
Margin Factor (example, 1.4): €17.25 x 1.4 = €24.15. Choosing the right margin factor is crucial for your profit margins.
Rounding Off to 95 Cent:
Recommended Retail Price (RRP): €24.95
Method 2 Example (Excluding Shipping Costs)
This method calculates the cost without including shipping, which is charged separately on your webshop, possibly with a free shipping threshold for orders over a certain amount.
Cost Price Including Pick & Pack: €10
Total Purchase Cost: €10
Own Cost Factor (example, 1.2): €10 x 1.2 = €12. Deciding on this factor personally can help manage your overheads effectively.
Break-even Point: €12
Margin Factor (example, 1.5): €12 x 1.5 = €18. Setting your margin factor according to your strategy is vital for maintaining competitiveness and profitability.
Rounding Off to 95 Cent:
Recommended Retail Price (RRP): €17.95
Method 3 Example (Margin Matrix, Excluding Shipping)
This approach uses a margin matrix to set pricing, which does not include shipping costs. The margins are determined based on the cost price range.
Margin Factors: Adjusted based on the purchase price range, for example:
For a Purchase Price of €0 to €5, Margin Factor = 2.5
For a Purchase Price of €5 to €10, Margin Factor = 2
And so on. It's crucial to define your own margin matrix based on your product types and profit goals.
Given a Cost Price Including Pick & Pack of €10:
Calculation: €10 x 2 = €20. This factor is selected based on the cost bracket; customizing it to your business model is essential.
Rounding Off to 95 Cent:
Recommended Retail Price (RRP): €19.95
In all methods, personalizing the cost or margin factor according to your unique business situation, overhead costs, and desired profit margins is key to setting the right price for your products.
Please feel free to reach out to our customer support team if you have any further questions or require assistance with pricing calculations. We are here to help!