Introduction: This article aims to provide a clear understanding of the two pricing fields on Mable for each product, explain why you might want to offer different pricing in those two fields, and address common questions related to landed costs and margin goals for distributor partnerships.
Mable Brands Terms & Conditions 6(b) outlines the concept of "Landed Cost" and the process of calculating it.
For more details on pricing products in a particular partnership, see these articles: Pricing for McLane, Pricing for US Foods,
Pricing Fields- why are there two?
When adding or updating your pricing on Mable, you will notice two pricing fields. You can view product pricing in your Products tab using the Bulk edit button at the top right, or by clicking into an individual product. "Wholesale price" is your product's price on the Mable Marketplace. "Adjusted price" is the price used for distributors like McLane and US Foods, and is the base price used for landed costs. Adjusted price must always be equal to or less than Wholesale price.
Any time you update pricing please double check both pricing fields to make sure they have been updated as needed.
If you are not on the Mable Marketplace, those two pricing fields should be equal and set to what you want your base prices to be for any distributor partnership(s) you are in. If you are in multiple distributor partnerships, you are not able to set different prices for different partners. If you are not on the Mable Marketplace and are interested in joining please reach out to support@meetmable.com.
If you are only on the Mable marketplace, also make sure both pricing fields are equal.
Why would I have an "adjusted price" lower than my typical wholesale price?
Answer: Adjusting your base price lower can be a strategic move to offer more competitive pricing to distributor partners. You may want to adjust your base price for several reasons:
- 100% Shipping Reimbursement: All distributor orders result in 100% of shipping costs being reimbursed back to the brand.
- Shipping Buffer: Many brands add a shipping buffer to their typical wholesale cost and/or Mable marketplace price, especially if they’re subsidizing a portion of shipping costs. For your adjusted base price you could remove this buffer.
- Retailer Margins: With the landed cost model retailers will be paying a shipping markup on top of the adjusted base price you set. To offer more competitive pricing to these retailers consider a slightly lower adjusted base.
How to price your products
- Start with your desired margin: Use this as your starting point when setting product prices.
- Consider costs and commissions: Landed costs and commission may influence your pricing decisions.
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Keep buyer margins in mind: Buyers often seek margins of 35-40% or more.
- Think about your product’s MSRP and what price you think the end consumer would buy your products at
- Understand the order basis: There are no order minimums for distributor partner programs, so consider smaller order sizes when pricing your products. If you set an Order Minimum this only applies to the Mable Marketplace, not to any distributor orders
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Adjust case quantities if needed: For better per unit economics, consider offering larger cases or master cases as your smallest purchasable quantity. For example, instead of offering a case of 6, offer a master case of 4 cases (24 units total).
- If you want to offer both master cases and regular cases, consider pricing your master case so that it is slightly discounted per unit than your regular case
How landed costs work
- Landed costs are retailer facing prices that are a combination of the product cost set by the brand, plus the estimated cost of shipping
- Shipping costs are estimated based on shipping quotes and historical shipping cost averages for different regions of the country
- Landed costs are updated on a regular basis to ensure accurate shipping estimates
- The buyer is responsible for paying for shipping costs
- Example: if an order for one case of a product (valued at $10) between Boston and New York typically costs $8 to ship, the price to the buyer will be $18/case
When does Mable calculate a landed cost?
- Chain Accounts through Partnerships: Landed costs are used for chain accounts coming through partnerships like McLane.
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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.
You are not responsible for calculating or setting landed costs. Mable calculates the landed cost markup and final pricing for retailers. You will be paid out based on the pricing you set, which is the base pricing that shipping markups are added to to provide final landed costs for retailers.
Landed Cost = Base Price + Shipping Markup
Brand Payout = Base Price - Mable Commission + 100% shipping reimbursement
Commission/Partner revenue split
- A 12.5% commission per order is split between Mable and the Distributor, the partner of the program you are participating in.
- Example: if you fulfill an order for 2 items, each priced at $10 for an order total of $20, Mable pays you $17.50
- $20 - ($20 * .125) = $17.50