Understanding B2B Pricing in the Timber Structure Market
Pricing strategy is a critical factor for log cabin dealers, and it is entirely yours to set. Eurodita does not publish, recommend or guarantee a markup: we fix the wholesale terms, and the gap between that and your retail price is your decision and your risk. This guide covers the cost layers and pricing approaches to work with, not a number to copy.
Cost Components to Plan For
A dealer pricing model should account for several distinct cost layers:
1. Manufacturer Price (EXW)
The ex-works price from Eurodita covers production, materials, quality control and loading at the Kaunas factory gate. VAT and delivery are excluded and confirmed separately for your route. This EXW figure is the base on which you build your own margin, but Eurodita does not publish it as a public price list; it is fixed per order in your written quotation.
2. Logistics
Transport cost varies by destination and method. Eurodita does not run its own transport fleet; freight is arranged through third-party carriers and priced to your specific route and load rather than a fixed percentage of product cost. Get your route’s freight quote before you set a retail price on it.
3. Import Duties and Taxes
For dealers outside the EU, import duties vary by destination and HS code classification, and VAT or GST applies at the point of import. Factor these into your landed cost before applying any retail margin; Eurodita’s EXW price does not include them.
4. Local Costs
Warehousing, handling, delivery to the customer’s site, and installation are additional layers that affect your final retail price. Whether you run these in-house or subcontract them is your own operational decision, and it changes what you can charge.
Pricing Approaches
Cost-Plus Pricing
Apply a markup to your total landed cost. Transparent and easy to manage, though it can leave value on the table for premium configurations if the markup does not reflect what the market will actually pay.
Value-Based Pricing
Price on perceived customer value rather than cost alone. Private-label branded products, bespoke designs and premium specifications such as glulam or twin-skin can support a different pricing logic than standard catalogue items, because customers cannot directly comparison-shop a bespoke design.
Tiered Pricing
Offer good, better and best tiers at distinct price points, for example single-skin as entry, twin-skin as mid-range and glulam as premium. This simplifies the customer’s decision and naturally opens the conversation toward higher-value products.
What Actually Protects Your Margin
- Private-label branding. Selling under your own identity removes direct price comparison against another reseller of the same manufacturer’s product. Eurodita supplies documentation and components without its own branding by default.
- Bespoke work priced on value, not cost-plus alone. Custom designs cannot be comparison-shopped the way standard products can; price them accordingly.
- Service bundling. Site survey, foundation preparation, assembly and aftercare in a single package increase total transaction value, and that value is yours to price.
- Order planning. Consolidated, full-load orders typically improve your per-unit freight cost; Eurodita prices freight per route and load, not from a historical figure, so this is worth confirming before you commit to a price point.
Common Pricing Mistakes
Dealers most often go wrong by underpricing bespoke work relative to its complexity and risk, by leaving a cost layer such as freight, duties or installation out of the landed cost calculation, and by competing primarily on price rather than expertise, customisation capability and service. Eurodita’s private-label model exists precisely so you are not competing against your own supplier’s name.
Frequently Asked Questions
What margins do log cabin dealers typically achieve?
We do not publish a figure. It depends on product type, your market, your service bundle and your positioning, all of which are your decisions, not Eurodita’s.
How should dealers price bespoke log cabin orders?
Value-based rather than cost-plus alone: bespoke designs cannot be directly comparison-shopped. Factor in your own design time, communication overhead and the exclusivity of the work when setting the price; Eurodita’s role is to quote the EXW price and lead the technical drawing and 3D visualisation pass for the configuration, not to set what you charge for it.
What is the best pricing model for a new log cabin dealer?
Most new dealers start with cost-plus pricing for predictable numbers while they learn their market, then move toward value-based pricing on premium and private-label products as they build a track record. There is no universal starting markup we can hand you; build it from your own landed cost.