The biggest single mistake in wholesale buying is reading the cost wrong. A price of $1.69 can be a bag, a pound or a case of 12, and the profit is different every time. Before you buy, work out every way the price can be read and pick the one that fits the listing.
A unit or a case
Most price lists give a price and a case pack ("12/CS", "Case of 24"). The question is whether the price is for one unit or for the whole case. A price that seems far too low for the case and right for the unit is a unit price; a price that is close to the listing's price for a single unit, but with 24 in the case, is usually a case price. Compare both readings against the listing and against the rest of the price list: the one that gives a believable profit, and sits in line with the prices around it, is usually right.
Per pound and per weight
Candy, nuts, coffee and bulk foods are often sold by weight: "$1.69 LB". The cost of one Amazon listing is then the price times the listing's net weight. A 2 lb bag at $1.69 a pound costs $3.38; a 12 oz bag costs $1.27. Take the weight from the listing, and check it against the size on your price list.
Dozens and packs
- Per dozen: a price for 12, common for cards, candles and party goods. One unit is the price divided by 12.
- Per pack: the listing sells a pack of 6 and your price is for one, or the other way round. The cost of the listing is the unit cost times the pack.
Pack sizes on the listing itself are covered in Pack sizes and price tiers.
Price bands
Some lists give a price for each quantity band: "1 to 199 LB", "200 LB TO 499 LB", "500 LB AND UP". Your results cost every product at the lowest price on the list until you pick another band, and the lowest price is usually the biggest band. If your order won't reach it, the profit you see is too high. When a list has bands, the Price tier control on the results page lets you pick the band you'll really buy at, and every cost and profit follows it. See Pack sizes and price tiers.
Check the reading
When a cost can't be settled, the PO Assistant's read says so in words, "cost not found" or "pack unclear", instead of suggesting a quantity on a guess. Answer the pack question on the product, or type the cost into the Cost column. A cost you type stays yours through band switches, Amazon data refreshes and reruns. See what a read gives you.
A worked example
A candy distributor lists "SANDED LEMON DROPS 1.69 LB, 200 LB TO 499 LB UNIT PRICE, 12/CS", and $1.89 a pound for 1 to 199 LB. The Amazon listing is a 2 lb bag selling for $14.99, and Amazon's fees on it come to $7.00.
- Read as a unit: $1.69 a bag, ROI about 370%. Too good to be true.
- Read as a case: $1.69 for 12 bags, 14 cents a bag. Impossible.
- Read by weight: $1.69 × 2 lb = $3.38 a bag, $40.56 a case of 12, ROI about 136%.
The weight reading is the one. Now the band. The listing sells about 160 a month with 3 sellers on it, so your share is 160 ÷ 4, 40 a month, and a PO Assistant read suggests 5 cases for 45 days: 60 bags. Those 60 bags weigh 120 lb, short of the 200 lb band, so the price you'll really pay is $1.89 a pound: $3.78 a bag, ROI about 111%. It pays at either band, but pick the one your order reaches, or every bag looks $0.40 better than it is. Reaching 200 lb would take 9 cases, 108 bags, almost 3 months of your share.