Pricing

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Markups

These are the price markups we add to the cost price for each category of product sold at Thoughtful Foods.

  • Bread: 20% - no further discount - ie- if we pay $1 for bread, we will sell it for (1+0.20)*$1=$1.20
  • Veggie boxes - 16% no further discount
  • Veggie bulk orders -
    • 5% for volunteering members (regular vollies or people who have a one-off vollie discount and choose to use this on a bulk order),
    • 30% members who aren't volunteering (only members can place bulk orders).
  • Groceries bulk orders - 5% volunteering membes, 30% members who aren't volunteering (only members can place bulk orders)
  • Groceries sold in shop - 75% organic or 80% not organic, unless otherwise “ethical”, eg local, farmer-direct and insectice free. Discounts that apply to this 10% members discount, 25% members who have vollied at least an hour that week, 40% members who have vollied at least 2 hours that week.
  • Group bulk orders - (groceries and fruit and veg) only for groups who aims and principles are in line with the co-ops: we give them a 20% off the normal retail price unless we have a functional and pre-existing reciprocal relationship with the group when a mark up rate of between 15% and 25% applies (factor in how much work the group bulk order is taking when working out what mark up between the 15 and 25% rate to apply as well as what the group gives back to us)
  • Cost price - when things are marked down, we use the invoice price plus 10%.

Pricing things that come in units (e.g. bag of tofu)

We'll generally pay by the unit for these things, so you just multiply the wholesale price per unit by the markup. If we're converting from kgs to units for some reason, weigh a few and work out an average weight, then a price for an average piece.

Pricing things that come in kilograms

Work out the prices we sell the goods:

  1. Use the computer to find the order, firstly in “Stock” then “Orders”. It may be on DropBox.
  2. Compare the prices on the invoice and check that the wholesale prices (including GST) match what is in the blue column. The prices generated in the right column will then be up to date and be per unit or kg, including GST and the correct markup.
  3. If the order is not on the computer, take the invoice and work out the cost price per kilo (e.g. we may have received 10kg of tamari almonds for $100 + $10 GST. So that’s $110 for 10kg or $11 per kilo (110 divided by 10).
  4. To get our selling price, multiply the cost price per kilo by our markup, which is 1.8, e.g. with the tamari almonds, we sell it for $11 * 1.8 or $19.80 per kilo. If the product is organic, use 1.75 instead of 1.8

Pricing things that come in litres

To determine the price per kg of one of the products listed below, multiply the price per litre by the factor in the table.

Product Weight/Volume ratio (kg per Litre)
Agave 1.07
Apple cider and white vinegar 1
Balsamic vinegar 0.93
Coconut oil 1.09
Olive oil 1.09
Sesame oil 1.09
Sunflower oil 1.09
Tamari sauce 0.83


For Items not listed here, do the following fun mathematics:

  1. Take the price on the invoice per litre and multiply by the normal markup, which is 1.8. This is the retail price per litre.
  2. Write the retail litre price somewhere on the container if you don’t plan to open it right there and then. Otherwise, write it down on a paper so you can do the following maths (fun!):
  3. Take bottle with known volume (e.g a water or juice bottle with a label)
  4. Tare the bottle
  5. Fill, but DON’T fill all the way to the top (think about jars that you buy – they are not filled all the way to the top)
  6. Put the bottle on the scale and write down the weight (for example, the weight of the bottle filled with the maple syrup is 0.405 kg). This shows us what the volume is equivalent in grams.
  7. Take the known volume of the bottle in mL and multiply it by the retail price per litre divided by 1000 (for example: If you have a 310 ml bottle, and the retail price per litre is $33.75, the equation you type into the calculator is: 310 x 33.75 = 10462.50. Then divide this number by 1000, which equals 10.4625.)
  8. Because we now know that 310 ml costs $10.4625 and that 310 ml is the same as 0.405 kg, we can use this information to work out the price per kilo (i.e. 0.405 kg of maple syrup costs $10.4625)
  9. Divide the cost of the 310 ml of maple syrup ($10.4625) by its weight (0.405kg) (e.g. $10.4625 divided by 0.405 kg is $25.8333 per kilo)
  10. Congratulations! You have now figured out the price per kilo.
  11. Round price up to the nearest 5 cents.
  12. To double check it’s right, put the bottle back on the scale and type the price per kilo (e.g. $25.85) and you should get the same number ($10.46) that you got before (within a couple of cents).

GST

When pricing something, take note of whether there is anything in the “GST” column on the invoice. If there is, then that product has GST. Make sure you include the GST when you're working out the price of the product, and tick the “GST” box on the product's label.

What has GST?

Generally, basic foods do not have GST. This includes most of the things we sell. However, snacks and foods that have a “service component” do have GST. Chocolate, peanuts (because they're roasted), tamari almonds, and such are all GST items. Additionally, all of the non-food items, such as the cleaning products, toothbrushes and toothpaste, Keepers and Moon Pads have GST.


List of GST Items

to be extended

  • Processed/cooked foods
    • Addiction food snacks
    • Chocolate covered items
    • Roasted nuts (but not peanut butter)
    • Tamari almonds
    • Chocolate
    • Botanical cuisine items (not all)
  • Non-food products
    • Cleaning products
    • Lunettes
    • Soap bars
    • bags
    • Pies
    • Licorice
    • Pistachios (roasted ones
    • Crystalised ginger
    • Kombucha


Marking stuff down when it goes bad

If an item has passed its “Use by” date, then it's no longer good to sell. It may be given for free to a volunteer or coordinator, but no responsibility can be taken for it. If an item has passed its “Best before” date, we can still sell it, but we should mark it down. First find out the cost price of an item. If it's organic, divide the price by 1.75. If it's not organic, divide the price by 1.8. Then multiply the cost price by 1.1. This is the new discounted price. Write up a little sign with the new price, letting people know why it's cheaper, and make sure you write “No further discount” and make sure it's put in the till after the discount has been applied to other items.