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On this page
  • What are cost-price strategies?
  • How do I set up a cost price strategy?
  • Example 1
  • Example 2
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  1. Online Guide
  2. Pricing

Cost Price Strategies

Last updated 10 months ago

What are cost-price strategies?

Cost-price strategies determine the default behaviour of your store in relation to the products that are available.

You can customise the strategy to suit your business needs and tweak and amend it as you need to throughout your business lifecycle.

By applying various rules, you can ask the store to consider prices for in-stock products only, or you could decide that your suppliers have a set priority for their products. You could even combine the two so that the store will pick prices for the highest-priority supplier, provided they have stock.

The filters available are:

  1. In stock

  2. Supplier priority

  3. Calculation method

By adding a calculation method, you can set the store to pick the lowest price and average price (for all available prices), or you can calculate the average price by the amount of stock available.

How do I set up a cost price strategy?

Your cost price strategy can be found under your store administration section under Pricing>Cost price strategies

Click the create button to start a new strategy. You can create multiple strategies but only one can be active at a time.

On the next section you will need to give your strategy a name (this is so that you can easily idenity what strategy this is)

You can then add a filter:

  • In stock

Or

  • Supplier priority

Selecting "in stock" will then mean only prices from suppliers with the product in stock are considered. Unless no supplier has any stock in which case all prices are included.

Selecting supplier priority will being up a list of all available suppliers in your store and give you an option of adding a number in the "Prio" box. This is how you tell your store which supplier prices to pick first. The lower the number, the higher the priority (e.g. number 1 is the top priority).

You can create several combinations of "is-stock" and "supplier priority" strategies.

You will then need to select the calculation method from the drop down.

This can be:

  • Weighted average by stock

  • Median price

  • Lowest Price

  • Average Price

The store will then use the method selected in combination with your store price logic, to determine the sell price of your products.

Cost price examples (PDF) can be downloaded using the link/image below.

Example 1

You could set up a strategy for "in-stock, lowest price" which would mean your store would calculate its sell price based up on the cheapest in-stock products available (in this instance with the supplier priority set the same, the store would consider all suppliers prices)

Example 2

With this function you have ability to prioritise your suppliers on several levels.

You can continue to use the existing scenarios or create a strategy of your own. For example:

A) Priority-1
B) Stock
C) Priority-2
D) Price model

651KB
Nettailer - Cost price strategy example.pdf
pdf