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Do raw materials for crafting count as merchandise for the 5% discount for the Artisan's Shop Vanity?
By the definition of merchandise, I would say yes, but I'm unsure of what the game definition of merchandise would be.
Side Question on another Vanity. Is there a good thread on the Master of Trade Vanity and how best to utilize it. I'm about to pick that one up too.

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Do raw materials for crafting count as merchandise for the 5% discount for the Artisan's Shop Vanity?
By the definition of merchandise, I would say yes, but I'm unsure of what the game definition of merchandise would be.
Side Question on another Vanity. Is there a good thread on the Master of Trade Vanity and how best to utilize it. I'm about to pick that one up too.
The game never makes a specific definition of "merchandise", so I'd say use the normal definition.
Just keep in mind that you round the price to the nearest GP.