Why MSRP is the wrong starting point
Manifest retail is a reference, not cash. The product may be a return, an older model, missing packaging, incomplete, oversupplied, or simply priced above what buyers currently pay. Auction Estimators discounts MSRP twice: first by your resale recovery rate, then by the percentage of units expected to be sellable.
Sellable rate and recovery rate are different
- Sellable rate answers: how many units will produce any meaningful revenue?
- Recovery rate answers: what share of stated retail will each sellable unit actually bring?
A pallet can be 90% sellable and still be a terrible buy if the products only move at 20% of retail. It can also contain high-value merchandise with poor recovery because too many units are damaged or incomplete.
What belongs in landed pallet cost
Landed cost includes the purchase price, buyer’s premium, sales tax when applicable, and freight or pickup cost. Freight is often the number that turns a distant “deal” into local-market inventory at full-market cost.
The calculator also subtracts percentage selling fees and per-unit prep from revenue. Add repair parts, disposal, storage, and your labor separately when they are material.
How the maximum purchase price works
Auction Estimators starts with recovery-adjusted revenue, subtracts selling costs, freight, and your target cash profit, then removes premium and tax from the amount left. The result is the most you can pay for the pallet under the assumptions entered.
Frequently asked questions
What recovery percentage should I use?
Use your own recent sold comps and condition mix. Do not rely on a universal pallet percentage. Category, platform, brand, season, local demand, and completeness all change recovery.
How should I treat salvage units?
If salvage has predictable value, include it as separate revenue in a more detailed model. For a conservative first pass, count uncertain salvage as zero rather than using full resale recovery.
Does landed cost per unit use every manifested unit?
No. Auction Estimators divides landed cost by expected sellable units. That makes the working inventory carry the cost of damaged and unsellable pieces.