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Markup / Gross Profit / How to Price Your Goods

Discussion in 'Business News & Resources' started by Pete, Nov 22, 2008.

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  1. DEI

    DEI

    Joined:
    Jan 2, 2009
    Messages:
    633

    VAT goes at the end as this is % of the gross pay.
  2. smudgepost

    smudgepost

    Joined:
    Feb 16, 2010
    Messages:
    4
    I've spent a day reading into this and have reflected a great deal on this post starting back in 2005. It's a really great set of tools and thanks to everyone who has contributed.

    These are my thoughts (lets solve this for everyone's benefit - my house mate is a tax specialist and accountant so maybe we can fish free facts!)

    This forum is called WHOLESALE forums. This would imply to me that many buy from wholesalers and are not necessarily wholesalers themselves. (If they are email me and lets do business :D - I digress).

    I raise this subject after pondering VAT.

    Many will not be VAT registered especially where their market are retails customers. This includes all your typical multi-media, games, books and gadgets.

    Wholesaler Cost + Wholesaler Shipping + VAT = Trade Cost

    Trade Cost (Includes VAT!!!!!!!!!!) + Landed Fee/Cost + Markup = Sale Price

    (May wish to include PayPal/Google Checkout et al fees into landed fee)

    Sale Price - Landed Fee/Cost = Gross Profit

    Gross Profit - HMRC = Net Profit

    VAT is not charged again as it has already been paid. It is rolled on to the customer. If you are VAT-able (registered) you would charge VAT as your Landed Cost would exclude it.
    beads likes this.
  3. smudgepost

    smudgepost

    Joined:
    Feb 16, 2010
    Messages:
    4
    Also found this related post on VAT.
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