Distributor pricing

Distributor pricing is used to apply a pricing identifier to items that are purchased on a distributor contract. These items can be purchased either directly from a distributor, independent of a manufacturer, or against a negotiated manufacturer price.

• For items that are purchased directly from a distributor: the item cost is negotiated between your company and the distributor.
• For items that are purchased against a manufacturer price: you can view the negotiated price and the markup or discount that is applied by the distributor.

For example, the base cost of an item on a manufacturer contract is $20.00 and the manufacturer offers a 10% discount. After the $2.00 discount is applied [20 x .10 = 2], the net cost for the manufacturer item is $18.00. Next, the distributor honors the manufacturer net cost before applying a 5% markup. After the markup is applied [18.00 x .05 = .90], the new distributor net cost is $18.90.