What is "cost price"?

[bos]

In Admin->Products->Add new->Pricing there are three fields: Retail price, sale price and cost price.

The Help for that page tells me Retail price is the price the customer will have to pay, and sale price if there's some sort of reduction (like "10% off this weekend"). But what is Cost price? Is that the price I (the store owner) pay for the item when buying? The help page says nothing of this field.

 

[Noodleman]

the price of the product for you to purchase from your supplier, IE the "cost" to you.

[bsmither]

Please note the current problem with Cost Price. When an item is sold, only the final price the customer paid is carried over to the Order Summary Inventory. The final price is dependent on several factors.

Your Cost Price is stored with the Inventory (on hand) details. A carton of 500 widgets puts the Cost Price at $1.00 per widget. You sell each widget for a 30% markup, or $1.30.

In your accounting, you can determine your potential gross profit: $0.30. It will be less if any other factor affected the final price.

However, you might acquire inventory in June at $500 per carton, but then in December, at a restock level of 50, acquire more inventory at $600 per carton. You update the Cost Price to $1.20 and compute a new 30% markup for your customer's pricing schedule: $1.56.

Now, you have 50 units selling for $1.56 that originally cost you $1.00. The accounting, using a basis of $1.20, will show a gross profit that is not accurate.

Of course, how one would keep track of this discrepancy has probably been figured out by businesses where it is of major importance. But I don't know what that would be.

CubeCart is not coded to accommodate this.