> 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.

#### At its simplest, there are three key prices to be aware of:

#### 1. Sales Price (RRP - Recommended Retail Price)

* The price you sell the product for to any customer.
* Includes VAT.

#### 2. Purchase Price

* The price you pay to your supplier when buying the product.
* Excludes VAT.
* This is the price you actively manage.

#### 3. Average Cost Price

* The average value of a product based on purchase history and stock adjustments.
* Automatically calculated, but you can manually set the cost price for specific quantities.
* May vary per warehouse.
* Excludes VAT.

{% hint style="danger" %}

## Re-calculating prices when adding customer to order

When adding a customer to an order, all prices on the order will be re-calculated. This is to make sure any customer-specific prices (from a price list or a customer-specific campaign) is taken into consideration, both in the case of adding the customer and not least eventually removing the customer from the order.
{% endhint %}

## Cost Price calculation method

Flow Retail uses average cost pricing (also known as weighted average) to calculate the cost price.

This gives a more balanced view over time, especially when purchase prices vary, and differs from FIFO (First In, First Out) pricing, which is used in some other systems and can lead to fluctuating margins depending on purchase order timing.

With this model, you get reliable insights into product profitability — without the volatility of FIFO-based cost tracking.


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