Trade Prices

[Bush Tucker Man]

I know I'm probably suffering from 'brain-fade' here & it's exactly what I think it is.
But what's the differance between Trade Price & Retail Price?
Is it simply that the VAT is not included??

I ask as I was in a big Auto-Electricians (usually fit out commercials & fuel-tankers)on Friday asking about some items & was given a trade price list, but never thought to ask until today :roll:

[Wanderer]

Trade price is price to the trade and retail is the price to well... retail. Normal punters.

Traders still pay VAT.

[Rangie3.0LtrDan]

Trade price is pre-markup price, there would be no point a trader paying retail prices for something otherwise he would be operating at a loss!

But luckily my local landy dealer gives me trade prices on me parts, even though i am not a trader!

[TimM]

IF they were talking about VAT they would be either quoting Net or Gross.

Trade price is as sold to 'professionals' (who may bring back repeat trade) rathe rthan retail to the ordinary punter who just buys and forgets.

So trade prices are usually LOWER  

[Bush Tucker Man]

I looked in my copy of the catalogue of a large national safety company that also happens to sell this item & the price is almost the same (pre-VAT)

[Sharpshooter]

I get this from all the local Motor Factors, and My local Land Rover dealer. If you ask for the trade price, youll notice it is a bit better. It isnt the price they pay, but usually cheaper than normal. When they ask who you are trading as, then make something up, Like YOUR NAME Auto's. It has always worked for me. :)

[Rangie3.0LtrDan]

never had to give them weird names, they just know me cos i go in there quite often to buy me bits lol

[ChrisW]

Trade will be excluding VAT, usually a bit of leeway there for discount too  

[Bush Tucker Man]

Right then I've checked the book & both prices are minus VAT;
'national safety company' = £64.29
'Commercial vehicle Auto-Electrician = £54.35

[ChrisW]

Kwik-Save - low low prices everytime  :shock:

[Bush Tucker Man]

Kwik-Save - low low prices everytime  :shock:

I was thinking more along the lines of ARCO

[ChrisW]

I was thinking more along the lines of ARCO

Is it safer going with them then?
(Any clue's as to what it actually is we're discussing?!!)

[Wanderer]

Hey man!

Who cares.

It must have been the sausages
:lol:

[ChrisW]

Still waiting for them to be delivered    :P  :lol:  :lol:  :lol:

[Bulli]

Trade price is a bit of a weird one as margin on godds can vary greatly. Firstly true trade price would be what a retailer pays direct from a manufacturer.
There are often catalogues from middle men that pretend to be trade price but as they bought the goods from either importers(could be importers themselves) or the manufacturer.This is why GREY imports are cheaper- Uk importers have an agreement to sell as a price and so parallel imports are often cheaper as they get around this price fixing(cars / motorbikes mainly)
There "trade" prices already have a cut for the distributer built in to the price and as they are designed for businesses to buy from rarely include VAT.
The main problem is that the margin on products varies greatly - i used to manage an outdoor retailers and the margin we had in a 300 goretex jacket would be about 70 quid, Burtons on the other hand make 25 quid on a pair of 30 trousers.

[nzrover]

It gets even wierder.  My local trade only electrical wholesale place lists all their stuff at "trade" price and will sell to any cash customer at that rate.  If, however, you have an account with them you buy at "trade" less a percentage (and for the cable I bought via a mate's account last week that percentage was 70%!)

[murph]

Even Arco give bigger dicounts on thier catalogue prices depending on how much you purchase, I used to get 30% of catalogue prices through the company.

Also compare this, 1 central heating radiator from local plumbing supplies quoted £150 plus vat, borrowed my neigbours trade card walked in and got rad for £82 all in, bargain.

Same goes for most motor factors round here, I can get trade by walking in, but if I go as a cash sale through the company get 25% off.

Nice that we get ripped off most places we go.

[ChrisW]

the cable I bought via a mate's account last week that percentage was 70%!

On cable, from memory, thats about the going rate for the difference between walking in off the street and asking for a cash sale and booking it out on an account.

My trade account at an electrical wholesalers, everything is trade price (excl. VAT) but then you ask for discount and then for a better discount!  

[johnniep]

i find that if your ordering something, o nthe net or by fax then send a headder with a made up company, on i nthe name space, and you automaticly recieve a discount or trade prices!!!

[Bush Tucker Man]

(Any clue's as to what it actually is we're discussing?!!)

Oh, it's just a little item I saw first in the ARCO & thought I'd trythe auto-electrical place.
Nothing fancy, or hi-tech, just a (possibly) useful item

That's it :roll:

[V8MoneyPit]

The term 'trade price' can mean just about anything. Often it is used to make you think you are getting a deal. However, as a rule it is simply a discounted from retail price, so that the 'trader' can sell on and make a little profit without having to exceed the retail price offered by the company they bought from.

Everyone pays VAT within the UK unless specifically excluded (I think charities can be excluded for example) or the product is exempt from VAT (like books or many food products). VAT registered companies then claim it back. Non UK, EU companies with a VAT number are also excluded.

We run a variety of 'trade discounts'. First level is for car club members who get a small discount. Then the next level is for the 'user' like garages. And finally, there is the stockist discount. Because they buy in larger quantities, we offer them the most discount.