# Help! My boss said I have priced the customer wrong and lost the business 1000s of pounds!

#### Icecream08

##### New member
So my boss said I have priced the customer wrong and lost the business 1000s of pounds

If the trade price for an item £50 +VAT (Or tax at 20percent) and the customers is a reseller so gets 20percent off trade, how much would you invoice the customer excluding VAT

For this I invoiced £40+VAT calculated at £50 x 0.8
Whiles my boss said it should be £41.67+VAT calculated at £50/1.2

My colleagues all would have done the same but can some one explain why I am wrong?

#### tkhunny

##### Moderator
Staff member
First off, no matter what WORDS are used, you should consider what your "Boss" intended as being correct.

Second, I might read the WORDS like this:
20% * £50 = £10
£50 - £10 = £40 = Price to Reseller

However it's not perfectly clear to me that something else may be intended.

Third,
Perhaps, £50 contains 20% Markup, and we're really just discounting the markup, then:
Purchase + 20%*Purchase = £50
Purchase * (1.2) = £50
Purchase = £50 / 1.2 = £41.67 -- We're selling to the reseller at Purchase Cost. Pretty good deal.
If this is the case, then pretty clearly, your £40 is BELOW your Purchase Cost. Not likely to be acceptable in the long run.
Your boss may have intended, "Get that 20% markup out of there!"

Not enough information to establish who is "wrong", but there is enough information to establish what your Boss intended.

Good luck.

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#### Icecream08

##### New member
Thank you for your explanation. I'm just really annoyed as its just really insulting how my boss said this was "Basic maths"

The conversion was literally:
Me: what's reseller price

Most of our customers are trade so we always use the trade price as base for other customers. The cost of this particular item was actually £31 something +Vat.

#### tkhunny

##### Moderator
Staff member
Thank you for your explanation. I'm just really annoyed as its just really insulting how my boss said this was "Basic maths"

The conversion was literally:
Me: what's reseller price