# Retail Pricing

## **Retail Pricing + Profit**

Every product has a recommended retail price. We try to recommend a price that gives you a healthy margin above the unit cost while still keeping products **affordable for customers**.

That being said, you are free to **set the retail price how you wish**. Perhaps you want to set a lower price based on your knowledge of your audience demographic, or to set a higher price to emphasize the premium quality.

The **unit cost stays the same** for you regardless of how you set your retail price. Juniper does not take a profit split, which means you can increase the price of the product and make more money!

{% hint style="info" %}
Profit for a given product can be calculated as:\
**Unit Profit** = **Retail Price** – **Unit Cost**\
**Total Profit** = **Units Profit** × **Units Sold**
{% endhint %}

If you set a retail price of $30 for a product with a unit cost of $12, how much total profit would you generate from the MOQ of 300 units?

**Unit Profit** = **$30** – **$12** = **$18**\
**Total Profit** = **$18** × **300 units** = **$5,400** &#x20;

## Flat Rate Shipping

Each product has a standard shipping fee **based on its weight** which will be charged to the customer when they check out. Add this shipping fee to your retail price to know how much a customer will pay in total for that product.

{% hint style="info" %}
The total amount that a customer pays for a product can be calculated as:\
**Customer Total** = **Retail Price** + **Shipping Cost**
{% endhint %}

We offer **flat rate global shipping**, meaning that you can ship products around the world without pricing out customers who live far from you. This also means that we can't offer shipping discounts on orders with multiple products.

* Our packages are shipped by air, so the cost is **based on weight**.
* Products are often fulfilled **at different times**, especially if an order includes pre-order products). We ship out each product as soon as it's ready.
* Different products are often stored **at different warehouses**, which means they are not always shipped out together.

## Shipping Subsidy

If you want to order to **reduce the shipping cost** for the customer, you can include a shipping subsidy which transfers some of the shipping cost to the retail cost or reduces your profit per unit.

{% hint style="info" %}
The total amount that a customer pays with a shipping subsidy can be calculated as:\
**Customer Total** = **Retail Price** + **Shipping Cost** – **Shipping Subsidy**

Profit for a product with a shipping subsidy can be calculated as:\
**Unit Profit** = **Retail Price** – **Unit Cost** – **Shipping Subsidy**
{% endhint %}

It's up to you how much you of a shipping subsidy you want to include, and if you want to **adjust the retail price** accordingly.

{% tabs %}
{% tab title="No Subsidy" %}
**Retail Price** = **$30**\
**Unit Cost** = **$12**\
**Shipping Cost** = **$8**\
**Shipping Subsidy** = **0**

**Customer Total** = **$30** + **$8** – **0** = **$38**\
**Unit Profit** = **$30** – **$12** = **$18**

In this example, the customer sees the price of shipping as $8.
{% endtab %}

{% tab title="Subsidy, Same Retail " %}
**Retail Price** = **$30**\
**Unit Cost** = **$12**\
**Shipping Cost** = **$8**\
**Shipping Subsidy** = **$5**

**Customer Total** = **$30** + **$8** – **$5** = **$33**\
**Unit Profit** = **$30** – **$12** – **$5** = **$13**

In this example, the customer sees the price of shipping as $3.
{% endtab %}

{% tab title="Subsidy, Increased Retail" %}
**Retail Price** = **$35**\
**Unit Cost** = **$12**\
**Shipping Cost** = **$8**\
**Shipping Subsidy** = **$5**

**Customer Total** = **$35** + **$8** – **$5** = **$38**\
**Unit Profit** = **$35** – **$12** – **$5** = **$18**

In this example, the customer sees the price of shipping as $3.
{% endtab %}
{% endtabs %}

You can also offer **free shipping** to customers by including a shipping subsidy equal to the cost of shipping.

## Sales Taxes

All orders from the **United States**, **United Kingdom**, **European Union**, and **Canada** will have an added regional sales tax. This tax is applied at checkout similar to other e-commerce websites.

## Import Tax / Customs

Import taxes can vary by the geographic region where the customer is based.

* In the **United Kingdom** and **European Union**, VAT (value-added tax) replaces all import taxes. VAT is a sales tax that will be applied at checkout, and customers won't pay extra import taxes.
* The **United States** does not charge import tax for shipments valued under $800. You can [read more here](https://www.trade.gov/de-minimis-value).
* **Canada** charges import tax for shipments valued over $20. You can [read more here](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn20-18-eng.html).
* Other countries do not have a specific threshold value for import tax, but may have a chance of shipments getting stopped at the border before an import tax is paid. Some countries like **Brazil** have a high chance of shipments being stopped at the border. Customers from these countries should already be aware of how their country handles international shipments.


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