Your min price is used to define the lowest total price you are willing to sell your item for. Informed will not reprice a listing without a min price set. Your max price is the highest total price you are willing to sell an item for. Unlike a min price, max prices are not required but can help maximize profit.
To learn how to set your min prices individually and in bulk check out our tutorial below.
To learn about some of the more advanced ways to set your min/max prices, keep reading this article.
Using a formula
When creating a repricing strategy you will have the option to create a min/max price formula based on your item's cost price OR you can set a fixed price that will assign identical min/max prices to all listings associated with the strategy.
- Cost Price: Basing formula off your items cost will allow each listing to have different min/max prices based off of this amount. While basing the formula off of the item's cost is recommended, you can input other values (current price, original price, etc.) in its place. You must provide us with your item's costs prior to creating the formula.
- Fixed Price: Creating a fixed price will apply the SAME min/max price for every listing assigned to the strategy.
Using a formula is recommended if you would like to calculate your min and max prices based on cost. Calculations can be based on your cost plus a percentage, fixed amount, or shipping price if applicable. If you are using a third party software that updates your cost price on a daily basis, uploads can be automated using our integrations.
To create your formula:
- Select "Formula" from the Price Protection section of your strategy.
- Click "+ New Formula" to begin.
- Name your formula something you can easily identify it by.
- Within your formula options, select either a fixed amount or cost as a starting point.
- You have the choice to include a percentage of profit, an additional fixed amount, or your shipping costs (MFN Only). You can add these values to your formula by selecting the "Add More" option.
- Percentage: The percentage you indicate will be applied to the total value. If you have identified the cost price + fixed amount first, the percentage will factor into their sum. This is helpful when incorporating marketplace fees into your calculation
- Fixed amount: A fixed amount is a specific value that will be added to your formula.
- Shipping cost: for Merchant Fulfilled sellers, if your items have shipping prices, this value MUST be added to your formula. Shipping prices cannot be edited within the formula.
Example: If the cost price of an item is $20, the shipping is $5 and you want your min price to add 30%. Here is how we would calculate your min price:
$20 (cost price) + $2 (Fixed + $3 (Shipping Cost) + 30% = $32.506
After you've confirmed your formula is correct, simply hit save and finish the strategy.
We've got more customizable ways to set your min and max prices based on your invidual needs and goals. Check out some of our other resources:
ROI - Based min and max prices