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NOTICE: MANUFACTURER HAS RAISED PRICES ON SELLING THRU THEIR CHECK OUT SYSTEM FROM SITE; IF YOUR CUSTOMER BUYS THRU THE SITE, THERE ARE NEW RULES IN EFFECT THEY SAY DUE TO INCREASES IN MANUFACTURING AND SHIPPING. iT MAY BE ADVISABLE TO PLACE ORDERS FOR YOUR CUSTOMERS THROUGH YOUR ACCT AT BASE PRICE AND HAVE ITEM SHIPPED TO YOUR BUSINESS FOR CUSTOMER PICKUP.HERE IS THEIR MESSAGE:

What is Profit Surcharge
Due to increasing competition within the market and rise in operations costs which saw shipping costs increase by 20% recently by Hong Kong Post Office, we will be enforcing a new policy in regards to our existing markup pricing policy. With effect on December 1, 2013, the following policy will be enforced:
1. For any markup on shipping fees, we will retain 50% of the markup amount.
2. For any markup on products exceeding 10% of the base price, the profit calculations will be as follows:


Messenger Bag Base Price: $20.00
Markup: $ 3.00
Markup Percentage: 15%
Sale Price: $23.00
Profit earned: 3 x (1-0.15) = $2.55
Blanket Base Price: $30.00
Markup:$ 9.00
Markup Percentage: 30%
Sale Price: $39.00
Profit earned: 9 x (1-0.3) = $6.30

Blanket Base Price: $30.00
Markup: $ 13.50

Markup Percentage: 45%
Sale Price: $43.50
Profit earned: 13.5 x (1-0.45) = $7.425

The maximum surcharge will be 50% regardless of how much you markup your designs. For markups 10% or less, no surcharge will be applied.
We hope you understand this change in policy has been enforced to encourage store owners to markup their prices at a manageable level. In the long run, the competitive pricing will boost your sales levels and profits. We hope we can overcome the short-term difficulties, and enhance our competitive capacity for ongoing successful online business.
 

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