Target Buy Price
Category: Pricing
Definition (plain English)
The maximum supplier price a buyer can pay while still meeting the required sell price, margin, landed-cost assumptions, and channel deductions.
Why it matters commercially
A target buy price gives sourcing teams a negotiation ceiling before they fall in love with a supplier quote that cannot support the commercial model.
Example
A retailer needed a 35% gross margin at $14.99 retail, so the buyer backed out duty, freight, FX buffer, and distributor margin to set a $6.20 supplier ceiling.
Common mistake
Negotiating from the supplier opening price or last purchase cost instead of working backward from sell price, required margin, landed cost, and MOQ risk.
Use this in CommerceKit
Landed Cost
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