Understanding Ad Specialty, Letter Codes, Distributor Pricing


Catalog prices of distributors or resellers will often reflect 'letter' roots. These letters determine percent and the markup value end users are being charged by their distributors, suppliers or resellers. These percent values are often considered proprietary and kept secret from the end user.

A / P = 50%
B / Q = 55%
C / R = 60%
D / S = 65%
E / T = 70%
F / U = 75%
G / V = 80%
H / W = 85%
I / X = 90%
J / Y = 95%

HOW DISTRIBUTORS OR RESELLERS NORMALLY FACTOR:

code = distributor or reseller cost divided by customer's cost %

catalog cost x customer's cost % = distributor or dealer's cost of item

distributor or reseller cost divided by opposite % of markup (to determine distributor or reseller profit & customer cost):

20% = distributor or reseller cost divided by 80%
25% = distributor or reseller cost divded by 75%
30% = distributor or reseller cost divided by 70%
35% = distributor or reseller cost divided by 65%
40% = distributor or reseller cost divided by 60%
45 % = distributor or reseller cost divided by 55%

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