> For the complete documentation index, see [llms.txt](https://docs.flowretail.com/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.flowretail.com/docs/day-to-day-operations/prices.md).

# Prices

Flow Retail includes an easy-to-use yet comprehensive price and campaign system designed to handle a wide range of scenarios.

## The three prices

#### 1. Sales price (RRP — recommended retail price)

* What you sell the product for.
* **Includes** VAT.

#### 2. Purchase price

* What you pay your supplier.
* **Excludes** VAT.
* This is the one you actively manage.

#### 3. Average cost price

* What the stock you hold is actually worth, based on purchase history and stock adjustments.
* Calculated automatically, though you can set it manually for a given quantity.
* Held **per warehouse**, so it can differ between them.
* **Excludes** VAT.

For how the average is worked out, what moves it and what does not, see [How cost price is calculated](/docs/day-to-day-operations/prices/how-cost-price-is-calculated.md).

## Cost price uses a weighted average

Flow Retail uses average cost pricing — a weighted average — rather than FIFO.

FIFO values each sale at the cost of the oldest unit still in stock, so margin jumps around depending on when purchase orders happened to land. A weighted average smooths that out and makes product profitability readable over time.

{% hint style="warning" %}

## Adding a customer re-prices the order

Adding a customer to an order — or removing one — causes prices on the order to be looked up again, so that customer-specific prices and campaigns are taken into account.

**Prices set manually are not changed.** A price someone typed in is treated as a deliberate decision and survives the recalculation. Lines where no customer price is found are also left as they are.

Add the customer before discussing price, not after. See [Adding a customer to an order](/docs/day-to-day-operations/selling/adding-a-customer-to-an-order.md).
{% endhint %}


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