Coding a New Product

The standard process for creating a new product to be added into our system is as follows:

First, we begin in the associated product’s vendor spreadsheet, which can be found through a search in our Vendor Spreadsheets folder in Google Drive

“<60” Column:

Before beginning, please note that each full product description has to be under 60 characters in order to be added in NetSuite. Some of the vendor spreadsheets have a “True/False” column that will alert you as “False” if the product’s description is too long. This is also built into the New Product Import Template.

“Brand” Column: 

If the product is being branded under either ThreadHeads or Pulsar, mark “Yes” under this column.

Creating the Product Description: 

Start on the left side and fill out the “Description” column by entering a detailed product description. Some important descriptors to include are sizes, color, whether it comes in a display, and how many pieces the display is. See below on the details that are required to build an accurate product description.

Basic Naming Structure: 

Not everything will apply to every item, but for whatever applies, below is the order to follow.

• #pc Display/Set/Bundle 
• Brand
• Material (Metal, Glass, Ceramic, Resin, etc.)
• General Description (A descriptor that typically distinguishes the product from others in it’s category. See pg.2 water pipe naming example)
• Product “Type” (Grinder, Hand Pipe, Ashtray, Incense Burner, etc.)

Place a “-” after the aforementioned compiled structure, then add one or both of the following if applicable:

• Size/Weight/Strength Information (Clothing Size, Grams, Pipe Length in Inches, Grinder Piece Count, Battery mAh, etc) 
• Continue Size Info If Applicable (Water Pipe Joint Size, Grinder Diameter, CBD mg etc.

Place another “-” after the aforementioned compiled structure, then add one of the following if applicable:

• Colors Vary:   For items sold individually but having the capability of coming in a variety of colors. This terminology tells customers that we can't really control what colors they might receive but we will send a variety if available
• Assorted Styles:   For items that are sold as a display/bundle which is guaranteed to be the same assortment of designs, colors, etc. every time the customer places an order

Taking a water pipe as an example, a good description of the below item would be “Glass Etched Mandala Water Pipe - 12.5" - 14mm F - Colors Vary ”.

“CS CNT (Case Count)” and MOQ (Minimum Order Quantity): 

Case count is fairly self explanatory; you simply enter the amount of displays or individual items that come in the master case. However, some vendors (mostly foreign) will have an MOQ, or specific amount you need to order in order to obtain multiple colors, or to meet production quantities. In this case, you would place a “1” as the Case Count and the minimum order quantity value in the MOQ column. There always has to be a numerical value for the case count in NetSuite and the vendor SS. The values in the MOQ column do not have to be purely numerical as they can have specific details listed out. See below for an example: 

The above example has a specific note that states more details about the MOQ: “1 Color = 100pcs, 2 Colors = 200pcs, 3 Colors = 300pcs, 4 Colors = 400pcs”. When adding into NetSuite however, that detailed of a note would go in the “Cost Notes” column for Jayson to see and the ideal MOQ number of 400 (for four colors) would be placed in the MOQ column. 

The example below is an example of a typical case count and MOQ combination. The above example image is saying “there is no fixed amount you are required to order, but if you want a certain amount of colors, you have to order a certain amount of pipes”, whereas the below example is saying “there are 30 in a case, but overall you have to order a minimum of 500 pipes”.

“MPN” Column: 

MPN, also known as the “vendor’s SKU” stands for Manufacturer Part (or Product) Number. This is the code or number that the vendor has assigned within their own database to differentiate their products and is typically gathered by asking the vendor directly or by gleaning it from their catalog. It is useful for us and Purchasing  to have when solving vendor issues regarding products. It is also good for them to have these numbers when issuing P.O.s and for Receiving when checking in P.I.s for cross referencing.

“Cost” Column: 

Also self explanatory, this is where the distributor cost pricing for the product goes as discussed and quoted by the vendor. 

“Declared” Column: 

This column should automatically populate on a percentage based off of the cost. This factors into the tariff calculation we will discuss later.

“SKU” Column: 

Our SKU that will be assigned in our NetSuite system to be the internal identification number associated with the product. To create an internal vendor SKU, you first must choose the appropriate prefix by visiting the “Prefix” list in the “Matrix Suffixes & Prefixes / Categories & Brands” Taking our Glass Etched Mandala Water Pipe product example from earlier, we would choose “PP” as the prefix. PP is defined as “Pipes, Non Branded Water Pipes, Bats” and in this case, this product fits under the Non Branded Water Pipe label. Obviously, the prefix will vary depending on the type of product being coded. 

Now we need our main component number! This is obtained by going into NetSuite and typing your prefix letters (in this case, PP) into the “SKU” search box at the top left side of your screen. 

The search will then pull up a list of all PP SKUs ever coded; it may take a moment to load depending on the amount of SKUs being populated. On the right hand side in the same row, there will be a “Quick Sort” with a blank drop-down field next to it. Click the field and select “Recently Created” from the drop down selection.

Now the search will show the most recent SKUs that have been created under that prefix. Scroll through the main body of products and look for the highest number value (most recent) SKU number. It is not always the first number/SKU on the list and other prefix SKUs may be mixed-in. 

In the below example on the next page, you can see that the most recently used SKU number under the PP prefix is “PP3267”; therefore, we would use “3268” for our new product SKU number. Go back to the vendor’s spreadsheet you were working in and add your new “PP3268” SKU.

“Weight” Column: 

The weight is needed for us to calculate the estimated cost of shipping (especially) for overseas products in order to gauge “true” margins. In the vendor’s spreadsheet and in NetSuite, we calculate our weight based on lbs. Occasionally the weights are included in vendor catalogs or websites, however, if not found you can ask the vendor or find a very similar product on our website.  If in another weight format other than lbs, the offered weight type will need to be converted into lbs. Once the weight value is added into the vendor spreadsheet, the Shipping, Avg Cost, Tariff, and w/ Tariff columns will automatically populate with the associated estimated costs. 

The only thing that may need to be adjusted out of the aforementioned columns that follow the Weight would be the price per lb within the “Shipping Column” formula. This can be adjusted by clicking the product cell and you will see: “=N74*1.8”. The number to the right is the shipping cost per lb, which will vary depending on whether it is shipped via Sea or Air. Adjust this value based on current shipping rates to gauge the most accurate shipping cost.

“MSWP and AFGWP” Column: 

MSWP is the vendor's recommended wholesale price, this is especially important if the vendor is a non-branded vendor that has fixed wholesale prices and/or a MAP. If the vendor has no recommended MSWP, then this column can be just left with the auto-populated “$0” values or it can have what price we decide to place it at. 

AFGWP is the wholesale price that we will sell the product for on our website. If a non-branded vendor has a fixed wholesale price (MAP), that price will go in this column as well. If it is a branded product or one that comes from a vendor that does not have a recommended or fixed price, this is the column to gauge what price we would like to sell it at based on the percentage profit margin column next to it. However, other factors to consider when pricing a product is market saturation, competitor’s pricing, and new to market, among other potential factors.  

When pricing products, they should always have an end cent value in increments of five, for example: .90c, $11.75, etc. compared to .93c, $11.76.etc. If an ideal wholesale per a non-branded vendor is $11.99 for example, you round to the nearest five increment value; in this case, you would round the aforementioned price to $12

The percentage column next to the MSWP does not have the shipping and/or tariff costs factored in, however, the column to the right of the AFGWP does. ACT % is the value that includes the shipping cost but not the tariff. The TRF % includes the cost of shipping and the tariff cost. Especially when coding and pricing overseas vendor’s products, the TRF % value is the best percent value to base your wholesale price one. 

Using the above image as an example, at the cost of $12 and a sea shipment rate of $1.80 per lb with the example water pipe weighing 1.2 lbs, our overall cost per piece would be $15.06. With an ideal wholesale price of $19.95, that means that our end profit margin on this product would be 24.51%

“Dist” Column: 

Shows the ideal distributor pricing based on a 30% discount. This column and cost pricing is only used on our in-house brand (Pulsar) to create a discounted rate for our distributor level customers. The dollar value in this column will auto populate. Disregard this column if working with non-branded vendors.

In the above example, it would not be possible to offer a 30% discount since it would cause a loss (negative margins). Therefore, we would either need to reprice the product’s wholesale entirely or adjust the distributor cost price/discount to a percentage lower than 30%.

“Retail” Column: 

Overall, the retail price for branded and non-branded products is usually 50% of what the wholesale price is. This column has a formula that automatically populates and calculates the retail price based on the wholesale input and this percentage. Typically, PMT only adds this value into NetSuite when a non-branded vendor has an ideal MAP retail price they want us or our customers to sell a product for.