Profit Margins and Price Adjustments
Types of Pricing
Cost Price: Price of product when purchased for resale.
Warehouse Price: Actual price of product once it has arrived, ready for resale. This will be the Cost Price plus any of the costs associated with the product, this can include shipping, repackaging, product storage price etc.
Regular Price: Price at which the product is sold to customer for. If Regular Price is less than Warehouse Price, the product is at a loss.
Sale Price: Preset price for the product when on sale.
How to set Cost and Warehouse Price
You can set the cost and warehouse price when you select the specific product by clicking Products in the left hand sidebar, selecting Products until a listing page is displayed here you may sort by category or use the search function to find a desired product.
Simply enter desire Cost or Warehouse price in the fields
Click Save in the right hand corner.
How to set Regular Price
There are two ways to ser Regular Price.
Option One - Using the Calculator (Recommended)
You can use the Calculator which will generate the regular price based on the on the values you enter. The benefits of this, is that you can easily generate regular prices for ÂÂ a whole category of products, and even multiple category of products. You can create as many or as little “rules” all with different values and apply them to a single categories or many categories. This gives you the flexibility to easily create different pricing for different customers based on their shopper group status, state and even country.
This method does not allow you to create rules for a single product.
To use this method:
In the left hand sidebar click Taxes & Discounts and select Taxes & Calculation Rules.
Here you may see a list of rules that have been created. You may edit existing rules or create new rules.
To Create a new rule click New in the right hand corner.
Give your Rule a Descriptive name, that will help you identify it’s function easily.
Select whether to publish the rule or not.
Ordering - ÂÂ Enter numerical value or leave as is. This is usually only important when you overlap different rules on a single group of products. For example if you have one rule that is +20% on to $5 product and another rule that is -$3 off same product, you have indicate which rule is applied first, as you know $5 + 20% - $3 is not the same as $5 - $3 + 20%.
Description - Add further info to help distinguish and understand the rule.
Type of Arithmetic Operation - Select Profit Margin.
Math Operation & Value - Select from the dropdown the operation that will be applied to the value. For example if you want the Price Margin to be 70% added onto Warehouse Price select +% from the dropdown and enter 70 into value field If you want to add $30 on top of the Warehouse Price select + from the dropdown and enter 30 into value.
Currency - Select United State Dollar
Product Category - ÂÂ Select all of the categories that the rule should be applied to.
Shopper Group - Select the shopper groups that should have this rule applied. You may create a rule for all categories for +70% to anonymous shopper group but only +60% for the default shopper group.
Country - Select the country or countries for which the rule should apply to.
State / Province / Region - Select which State / Province / Region the rule should apply to.
Start Date - Select a date for this pricing rule to take effect.
End Date - Select a date for this pricing rule ÂÂ to end
Option Two - Reverse Calculation
This method allows you to set individual pricing based on final Regular Price without determining which percentage your profit margin is.. For example If you want to sell a lamp for $99 no matter what the warehouse price is, you can enter “99” in the Regular Price field and check the Reversed Calculation box. You may use reversed calculation on specific items, and use the profit margin method for others.
In case You will only be using the reversed calculation on all your products, you must create one rule, for all products. This rule will be for example +500%, it will not mean much, because it will be overridden by the reversed calculation, but doing so will let you apply sales and discounts onto those products in the future.
REMEMBER TO SAVE ALL YOUR CHANGES WITH THE SAVE BUTTON NEAR THE TOP RIGHT CORNER.
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