The Wholesale Forums

[rssales]

Right to clear this up

£10+VAT = £1.75
£10 inclusive of VAT = £1.49

http://www.taxcentral.co.uk/taxcentr...or/default.asp
^ That link may help.

[Beneddie1112]

Boyscrapper is right, the VAT rate is always 17.5%, the 1.49 you are reffering too would be 17.5% of 8.51, making it 10 inc. VAT.

[Pete]

So, you would multiply either 10 or 11.75 by 1.67 to get your 40% Gross Profit.

Plus, if you had shipping charges that you paid, you should also add them to the 10 or 11.75 before doing the factoring. All costs in getting the goods on your shelf should be included in what you consider "COST".

This would include brokerage fees, storage fees, hauling fees, etc. If you want to truly zero in on cost you would even include TT fees and such. All costs involved in acquiring the goods. Sometimes this can open your eyes and let you see you are not making near what you thought you were.
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[greedyboy]

Originally Posted by Pete

So, you would multiply either 10 or 11.75 by 1.67 to get your 40% Gross Profit.

Plus, if you had shipping charges that you paid, you should also add them to the 10 or 11.75 before doing the factoring. All costs in getting the goods on your shelf should be included in what you consider "COST".

This would include brokerage fees, storage fees, hauling fees, etc. If you want to truly zero in on cost you would even include TT fees and such. All costs involved in acquiring the goods. Sometimes this can open your eyes and let you see you are not making near what you thought you were.
.

As above. We use the that method to determine the 'true' cost price. When importing our 'additional costs' are represented as a % over cost. For instance, our 'other costs' are normally approximately 15% - 20% over FOB price to equal the 'landed price'.

If you actually land a product for £10 it is actually costing you more when you factor in your personal costs 9sfter landing).

Overhead costs should be added to the cost price also. In very simple terms if you sell 1000 items a month and you overheads are £1000 a month, you actually have to add that £1 to your product cost.

You have to factor in your costs and something know as the x factor (not the talent show). The x factor is an additional amount or percent to cover other eventualities.

Been up all night and my head hurts even more now!

EDIT: I forgot to mention 'price loading' where by you load you costs on to other products leaving your core products more competitive!

[Pete]

We ought to write a book.

Or patent a course.
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[greedyboy]

Im ready

UK and USA versions covered

[MustHaveMobiles]

http://www.google.co.uk/search?sourc...lculator&meta=

[Pete]

Takes all the fun out of it.

The need is not only to get the figures, but to understand how they are derived. Using a tool like that is fine when you understand what is involved, but without the basics, they are still in the dark.
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[greedyboy]

Agreed. The fun is spending half an hour writing a spreadsheet with every possible cost combination telling you how much money you will or have made!

[Inferno House]

Originally Posted by rssales

Right to clear this up

£10+VAT = £1.75
£10 inclusive of VAT = £1.49

http://www.taxcentral.co.uk/taxcentr...or/default.asp
^ That link may help.

But what i'm saying is...

Lets go by the price of £10 inc. VAT

The VAT rate is 17.5%

So why the heck is £1.49 the VAT amount of £10??? surely it should be £1.75 as this would calculate to 17.5% of £10???