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Wholesale and Retail Price


brianelley
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Is there a code that I can use to calculate the Retail Price by multiplying a percentage of Wholesale price in the Products section of Control Panel?

What I want is, if I enter the Wholesale price for the product, it should calculate the Retail price by multiplying with a percentage and auto-populate the Retail price.

Can some one help on this?

I am not a programmer.

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  • 4 weeks later...

Hi,

It works the other way around... at least in version 1.3

You post you highest sale price in the Back office catalog. Then when you add customer you give them access to different discount schedule by assigning them in different groups example:

Create MSRP Reduction 0% (manufacturer suggested retail price)
create regcust reduction 15%
create wholesale reduction 50%

When they will log in, they will see their price according to discount schedule you gave them

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How much do you think your chairs will sell for? Perhaps $120? Then working from the top down, you should try to offer them to the stores for $60. Stores will often expect a markup of at least 100%. At this price you should be buying the chairs for closer to $30 to ensure that your business is viable and able to grow.

You could also work from the "bottom up." This means that you know that you buy the chairs for $40, so you must try to sell them wholesale for $70-$80 and set a recommended retail price of $140-$160.

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A simple formula when pricing for wholesale is to add up your costs (this includes labor, overhead, and supplies) and multiply by 2.

2 x (supplies + labor + overhead) = total cost to you

For retail, do the same, but multiply by 2.5 to 3 (often referred to as keystone pricing).

Below is an example of how this formula works, and of course, this can vary depending on the cost of your supplies, your hourly wage, and your overhead cost, but it will give you an example of how to apply the formula:

You make a pair of earrings and the cost of the supplies is $2; they took you 10 minutes to make and your hourly wage is $18, so that would be a labor cost of $3; overhead costs you’ve estimated to be $1:

Wholesale earring price: 2 x ($2 + $3 + $1) = $12

Retail earring price: 2.5 x $12 = $30

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