Minimum order, trade prices and margins: what to expect

Is there a minimum order?

£100 in goods, excluding VAT. That is a handful of lines rather than a pallet: you can still buy one bottle of something to see how it sells, as part of an order that reaches the minimum. Most wholesalers set theirs at £500 to £3,000 on a first order, because they are set up to move pallets. We are set up to move boxes, and a smaller first order that turns into a regular one is worth more to us than a big one that sits in your stockroom.

What "trade price" means here

A trade price is the price to you as a business, shown ex VAT. Ours are the same for every approved account — there is no "call for a better price" tier — and they are shown on the site once you're logged in, so you can work out an order at your own desk rather than waiting for a quote. VAT at 20% is added on the invoice, and if you're VAT-registered you reclaim it, so the ex-VAT price is the one that matters for your margin.

Working out your margin

The number that matters is what you sell at, less what you paid, as a share of what you sell at. An illustration with round figures — not a price list:

Line	£
Trade price, ex VAT	20.00
Your selling price, inc VAT	39.99
Your selling price, ex VAT (÷ 1.2)	33.33
Gross profit per bottle	13.33
Gross margin	40%

Two things people miss. First, compare ex-VAT to ex-VAT: a £39.99 shelf price is £33.33 of revenue once the VAT is passed on. Second, the online price is not the ceiling for a shop: the customer standing in front of you is paying for having it now, for your advice, and for not waiting for a courier. Independents that price a pound or two under the high street, rather than trying to match the cheapest listing on a marketplace, tend to keep both the margin and the customer.

What sizes and lines sell for an independent

Ask us and we'll tell you what moves for shops like yours, but the general pattern is consistent: the 50ml and 100ml eau de toilette of a well-known men's line (a Calvin Klein, a Hugo Boss, a Paco Rabanne) is the bread and butter; a women's eau de parfum in the 30ml–50ml sizes suits a gift shelf; gift sets carry the last quarter of the year; deodorants and body sprays are cheap add-ons that lift the basket. Start with a few known names in the common sizes rather than a wide range of one-offs.

Delivery and what it costs you

• UK delivery is £5.99 per 2kg box — about a dozen bottles — on the invoice with its VAT.
• A larger order, which is more parcels or a pallet, is quoted exactly: we confirm the delivery cost once you have placed the order, and it is on your proforma invoice before you pay.

Fragrance is a "dangerous goods" item for carriers because of the alcohol, which is why a lot of sellers won't post it or charge heavily. We ship it properly and charge it by the box, so work it into your margin as a cost of the order rather than of the bottle.

Paying

You confirm the order on the site; we check stock and send an invoice; you pay by bank transfer; we dispatch. Nothing is charged when you order, there is no card payment on the site, and payment before dispatch is the only arrangement we offer to new accounts.

Returns

Anything damaged, missing or wrong: tell us within 3 days of receipt and we credit it. We don't accept returns — these are trade sales — which is the other reason not to over-order on a line you haven't tried. Order a few, see what moves, reorder what did.