Introduction: Mable Brands Terms & Conditions 6(b) outlines the concept of "Landed Cost" and the process of calculating it. This article aims to provide a clear understanding of the new pricing field, explain why you might want to adjust your base price, and address common questions related to shipping markup calculation and margin goals for chain accounts.
Landed Cost = Base Price (Listed Mable Price) + Shipping Markup
Brand Payout = Base Price OR Adjusted Base Price - Mable Commission + 100% shipping reimbursement
By understanding the concept of landed costs and shipping reimbursement, you can make informed pricing decisions. If you have further questions or need assistance, don't hesitate to contact us at email@example.com.
Why would I add an adjusted base price lower than my currently listed Mable price?
Answer: Adjusting your base price lower can be a strategic move to offer more competitive pricing to retailers. You may want to adjust your base price for several reasons:
- 100% Shipping Reimbursement: Orders with landed costs result in 100% of shipping costs being reimbursed back to the brand.
- Free Shipping Program: If you're participating in the free shipping program, you're currently splitting the cost of shipping with Mable 50/50.
- Shipping Buffer: Many brands add a shipping buffer to their wholesale cost on Mable, especially if they’re subsidizing a portion of shipping costs.
When does Mable calculate a landed cost?
Answer: Mable calculates a landed cost for specific scenarios:
- Chain Accounts through Partnerships: Landed costs are used for chain accounts coming through partnerships like McLane.
- Reasons for Landed Costs:
- EDI Ordering and Pricebook Integration: Landed costs are required to integrate into customer ordering systems for EDI ordering and pricebook management.
- Consistent Margin: Landed costs help maintain a consistent margin across all store locations.
How does Mable calculate a brand’s shipping markup?
Answer: Mable calculates the shipping markup as follows:
- Brand-Provided Parcel Information: The shipping markup is calculated using parcel information provided by the brand, including case dimensions and weight.
- Mable's Shipping Tool: Mable employs its own shipping tool and negotiated rates to determine shipping costs.
- Retailer Location Data: The target retailer’s location data is considered to land on the most accurate shipping markup.
What are the margin goals for chain accounts?
Answer: Mable recommends a landed cost that aims to achieve at least a 35% margin for chain accounts. Adjusting your base price may be necessary to meet this goal while considering the 100% shipping reimbursement and other factors.