B2B pricing must cover your true cost, leave a sustainable margin, and still win the order. Getting it right protects both profit and the relationship. Here is how.
Add materials, labour, packing, freight and a share of fixed costs to get the real cost per unit. Pricing off a rough guess is how businesses quietly lose money on B2B orders, so know your floor first.
B2B margins are thinner than retail because volume makes up for it. Offer better rates for larger or committed orders, and hold a firmer price on small ones, so both sizes stay worth your effort.
Credit days, free replacements and delivery all cost money, so build them into the price. Quote the correct GST rate for your product, and compare on the full landed cost rather than the headline rate.
Raw material and freight costs change. Check prices regularly and revise before a rise eats your margin. Tell buyers in advance and explain the reason, and most will accept a fair adjustment.
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