Home – New Forums Money matters Wholesale price incl. / excl. GST and retail price incl. / excl. GST

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  • #995046
    Bespoke1
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    Hi brains trust,
    I know the question has been asked before, I have read through a few threads but still don’t have a clear understanding the calculation of wholesale price to retail price with / without GST.

    Can someone please clarify, if I wanted to retail a clothing item for $19.95 (incl. GST), the calculation to figure out the wholesale price would be;

    RRP $19.95 incl. GST
    RRP = $18.14 excl. GST

    $18.14 / 2 = $9.07 which is the wholesale price incl. GST, therefore
    $8.24 is the wholesale price excl. GST

    This is of course using the assumption both wholesaler and retailer are registered for GST.

    I look forward to your response

    #1199714
    bb1
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    You are also making an assumption at the percentage markup between wholesale and retail, some of my products I markup 30% others 70%, so there is no set figure in reality, it is up to each individual business.

    #1199715
    Easysmb
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    Hi There
    No response, it is possible that your questions are not very clear, it seems you know GST.

    GST amount is simple 10% of Ex GST price or 1/11 of GST Inc. price no matter whole sale or retail price.

    Generally, retail price, RRP is end consumer facing that is GST inclusive price, but whole sale is sometimes quoted as GST exclusive price.

    Hope this helps.

    #1199716
    MyGreatIdea
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    Generally, wholesale prices will be excluding GST when quoted so, in your example:

    RRP $19.95 inc GST
    GST would be $1.81

    You don’t quote them a retail without GST, so the figure of $18.14 is purely for your own calculations. Wholesale price $9.07 exc GST (this is where you made your error).

    So the only two figures you give out are RRP $19.95 and Wholesale $9.07exc. You don’t need to worry if they’re registered or not, they’ll figure it out themselves.

    Wendy :)

    #1199717
    Bespoke1
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    MyGreatIdea, post: 236483, member: 20385 wrote:
    Generally, wholesale prices will be excluding GST when quoted so, in your example:

    RRP $19.95 inc GST
    GST would be $1.81

    You don’t quote them a retail without GST, so the figure of $18.14 is purely for your own calculations. Wholesale price $9.07 exc GST (this is where you made your error).

    So the only two figures you give out are RRP $19.95 and Wholesale $9.07exc. You don’t need to worry if they’re registered or not, they’ll figure it out themselves.

    Wendy :)

    Thanks Wendy!
    That makes a lot more sense if the wholesale price in excl. GST and 1/2 of the RRP excl. GST.
    Cheers

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