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  1. #1
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    Default Profit on Realisation

    I know I have posted this elsewhere, but I have come to realise that this type of mod is not in existence, so perhaps if I put out some feelers in this area, some very clever person might be able to help.

    Basically we are a wholesaler and sell items usually in bulk e.g.

    Price: 8.88
    Product Count per Box: 24 (This is an additional product field)
    Recommended Retail Price per Unit: 0.60 (This is an additional product field)

    The Count and RRP file are extra product fields. I want to advertise to the buyer (i.e. the retailer in this case) the POR (profit on realisation).

    I thought that perhaps the MSRP mod could lend itself to this. Therefore the POR would have to take into account that the actually unit price is 8.88/24 = 0.37 per product. But the VAT has to be included here too as the RRP includes the VAT. We do include the VAT on Display Price only at Checkout. This would bring the unit price to 45.5p and thus the Retail Profit is 33%.

    As wholesalers this is one way of promoting sales by attracting buyers based on their potential profit margin.

    So just wondering if anyone had any ideas how to do this or is there another module out there that might be suitable. I think this would be a good module to develop probably more for the wholesale trade though.

    I know there is quite alot of detail in this but may be someone can point me in the right direction. Cheers.

  2. #2
    Join Date
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    Default Re: Profit on Realisation

    Not sure how VAT is handled legally in Ireland.

    The Australian counterpart to your VAT is the GST.

    Here the wholesaler advertises all prices excluding GST. The retailer who buys from the wholesaler initially pays 10% GST to the wholesaler on the wholesale value and claims the amount back from the tax office. The retailer then adds his/her margin and only then adds 10% GST which he/she collects from the consumer. The latter is then paid to the tax office by the retailer.

    If your situation in Ireland is the same as in Australia you could write the formula based on GST (VAT) excluded eg (I am using the Australian rate of 10%)

    x = RRP/11*10 where x is the retail price excluding GST
    y = wholesale price

    then you get

    POR = (x-y)/x*100

    and you would display on the page

    based on RRP of (echo RRP) your gross profit margin is (echo POR) %
    Again, my example is based on the assumption that your situation is the same as in Aus.
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  3. #3
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    Default Re: Profit on Realisation

    Hi Frank thanks for taking the time to look at this and for getting back to me. The two systems seem similar alright. In our case for example if we as wholesalers buy supplies within Ireland, we pay the VAT (23%) on these supplies.

    On our web, we display each product ex VAT but when the Retailer adds the products to cart, the VAT is added at the end i.e 23%. In turn the Retailer will sell usually at the RRP which already takes into account 23% VAT to the consumer, so there is a chain.

    To work your equation: it would be like this:
    Box of Chocolate x 6 = 29.50 (Bulk price ex VAT)
    RRP per box (inc VAT) = 10.49
    Retail price (before VAT) = 8.53 (10.49/1.23)
    Wholesale Price (ex VAT) =4.92 (29.50/6)
    POR 42% (8.53-4.92/8.53*100)

    So think we work on same here, except wholesale price needs to be divisable by the no. of units per qty.

    Now I know I could just add a field add it manually with excel and then upload all products again with EP. But it would be better if the POR Field could be added an automatically work as the VAT field does. This is a website where this feature is working here.

    I am just not sure how to go about implementing this, so really appreciate any guidance on this. Cheers.

  4. #4
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    Default Re: Profit on Realisation

    Quote Originally Posted by jagall View Post
    ....
    Now I know I could just add a field add it manually with excel and then upload all products again with EP. But it would be better if the POR Field could be added an automatically work as the VAT field does. ..... Cheers.
    Bear in mind that the VAT value is static (until some bright button in government decides to increase the tax........) BUT your POR percentage may be variable from product to product. Consequently you would need an extra field for RRP but not for POR.
    Zen Cart with a Passion (Fair Dinkum Australian): iSO Network | frNT Online Dispensary
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  5. #5
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    Default Re: Profit on Realisation

    Quote Originally Posted by frank18 View Post
    Bear in mind that the VAT value is static (until some bright button in government decides to increase the tax........) BUT your POR percentage may be variable from product to product. Consequently you would need an extra field for RRP but not for POR.
    Hi I actually do have an extra field added for RRP, but will need a calculated field for POR. I know this could be done manually in excel before importing but it would be nice if it worked from the admin area as a field that populated based on the values of the other fields i.e. price, count, RRP. Probably easier to do it manually?

 

 

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