When managing multipliers, you will notice there are four ways to change a products' price. Here is what each of them mean.
First, you need to understand that products are put into the E-Catalog at list price. These multipliers and discounts act upon this list price. For this example, let's assume we're selling a door with a list price of $1,000.
Note: Markup and Margin are automatically calculated as you fill in Net and Retail, and vice-versa.
- Net: Net multipliers are generally set by the distributor and indicate how much the distributor will sell the product to the retailer. If the net multiplier is 0.5, the distributor will sell the door to the retailer for $500.
- Retail: Retail multipliers are set by the retailer and indicate how much the retailer will sell the product to the customer for. If the net multiplier is 0.6, the retailer will sell the door for $600, along with a 0.5 net multiplier, this means the retailer will make a 10% profit.
- Markup: Markup is how much the product is marked up from the net price to the retail price. This is calculated by finding the difference between net and retail, then dividing that by net.
- Margin: Margin indicates the profit margin for the retailer. This is calculated by finding the difference between net and retail, then dividing by retail.