RON: You can see that the wholesale might be an uplift of whatever that percent is, right? So I might go out and do something like 15%, 25%, 35%, and then 40%. So retail uplift might be 40%. And then for a reseller, the uplift might be 30%. And then for a wholesaler it might be 20%, and then a distributor there might be 10%.
Basically, it will look into your ERP—when we build a group buying platform, will typically integrate with the client's ERP—so as the cost of the product, as they buy it and purchase and the cost in the ERP, we'll take that literal cost and we'll uplift by those percentages. So the prices can adjust as your costs adjust that way. If the price goes up, then obviously your margin’s protected for each of those tiers. As the price goes down. If you want it to, it can be protected as well and give a better and more aggressive price. So as you benefit and get a lower price, your buyers group members get a lower price as well and you're always guaranteed your 10%, 20%, 30% margin, whatever that looks like. So that's setting different tiers.
How that differs with pricing rules...pricing rules would be something like [this example]—Chris and I own a buying group platform and we were lucky enough to buy out Costco drugs when they went out of business. And so we have all this extra stuff in the warehouse and we want to clear it out. So what we're going to do is, we're going to go put everything with that tag and we're going to set a pricing rule that for the next 30 days, everything with this particular tag is an extra 20% off.
Or we want to offer on Costco, we want to say, “Hey, it's getting close to back to school. So at Costco, we want to run a 20% off all kids clothing before two weeks before school starts.” So we would set a price rule. We would set it on kids clothing, and we would put a timing on that and say, for the next two weeks, all clothing in the kids clothing section is 20% off. That's a price rule, and that's very different than a price tier. And most of these, for the most part, are auto-applied.