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Wholesale pricing in the trading house model: an open formula

The price of a trading house is not a “single price”, but a formula assembled from parts with understandable terms.

January 15, 20268 minutes of reading
A trading house analyst collects a lot price structure on a laptop

Briefly.

How is the price of a trading house?

The price of a trading house consists of three blocks: cost with delivery (landed cost), FOB-margin and service layer. Cost with delivery combines purchase, freight, insurance, certification, marking and warehousing. FOB margin covers trading risk and working capital. The service layer is pre-export control, documents, complaints and onboarding in the category of the buyer. All three blocks unfold in front of the buyer in an open structure, without a single price. This material helps category retail managers and buyers of HoReCa in the Baltics and Scandinavia to understand what components the wholesale price of a batch at a trading house is collected from, and where the trading house really creates value compared to a chain of disparate intermediaries. Inside is the cost structure with delivery, the difference between the FOB margin and the final margin after delivery, the service layer and the three levels of the contract.

Operator.
SIA "Trade House ECLECTIE", registration number 40203644876
Consolidation point
Uriekstes iela 4A, Riga LV-1005
Formula
Cost of delivery + FOB-margin + service layer

Cost of delivery: what is the landed cost

FOB margin versus full margin after delivery

Service layer: what is included in the price, besides the goods

  • Pre-export control of the consignment: fixation, verification of markings and documents, report on control points.
  • Import document management: commercial documents, proof of origin, marking according to Regulation (EU) No 1169/2011.
  • Support for complaints and returns: single point of responsibility, fixed response times.
  • Onboarding in the shelf or menu: specification, photo protocol, approval of the output format.
  • Coordination of seasonal calendar and reserve route scenarios.

Transparency as a price instrument

Three levels of contract: pilot, framework, strategic partner

  1. Level 1 pilot: high service layer, fixed volume, accelerated validation of documents.
  2. Level 2 - Framework contract: agreed seasonal calendar, depreciated service, sustainable margin.
  3. Level 3 is a strategic partner: joint planning of the SKU portfolio, individual conditions for logistics and certification, general work on the development of the category.
  4. Transition from level to level – based on the sustainability of two complete cycles and proven commercial efficiency.

Protection of prices from border changes and seasonal fluctuations

FAQ

Frequently Asked Questions About Wholesale Price

Yeah. Prior to the contract, we prepare a transparent price layout for the components: purchase from the manufacturer, freight on the selected route, insurance, certification and customs procedures, marking and packaging, warehouse processing, FOB margin and service layer. The layout is discussed together with the category manager of the buyer at the stage of preparing commercial conditions, so that the parties fix not only the final price, but also the logic of its formation. This reduces the number of disagreements in subsequent batches and simplifies price revisions when market conditions change.

Next step.

Get a transparent price structure for your category

Through the form on the site, send the buyer profile, the target SKU and the desired delivery channel. We will come back with a price tag, a service layer, and a contract level proposal, from the pilot to the strategic partner.

Wholesale pricing of the trading house: landed cost + FOB