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One of the basic functionalities of the Multi-Channel Integration Platform (MIP) is the option of setting pricing rules.
In this article, we explain the basics of configuring them.
1. Pricing strategy by margin vs. by profit
Depending on what suits you best, you will be able to set prices using a margin or profit strategy:
In the case of the margin strategy, you decide what percentage to add to the cost of the product/wholesale price.
In the profit strategy, you establish the percentage of the final price (not the product cost) that will correspond to profit. Therefore, for a profit of 40% for example, the cost/wholesale price must correspond to the other 60% of the final price.
Applying this theory to an example of 40% on products costing €20, you can see that:
- With the margin strategy, 40% is added to the cost/wholesale price and will give you a profit of €8 and a sales price of €28. €20 + (€20 x 0.4) = €.28
- With the profit strategy, the system will calculate that €20 is 60% of €33.33 (final sales price), so the remaining 40% (€13.33) will be your profit. €20 / (1 – 0.4) + €33.33
In this case, the price wouldn’t vary considerably, but by applying the profit strategy, the values may increase significantly. For example:
- By adding 99% margin to a €1 product, the retail price would be €1.99.
- By applying the profit strategy, the retail price would be €100.
Therefore, if you are not familiar with profit percentages, we recommend using the margin strategy.
2. Rules by price range, category and product
2.1 Rules by price range
In this section, you will be able to choose the percentage of profit for products within a specific range.
Bear in mind that if you deactivate it (button in the Off position), BigBuy’s RRP will be applied, although the changes will be saved in the same way, so you will be able to reactivate them at any time.
There are preset rules that you will be able to edit or delete using the two icons 
For example, we’re going to add a new price range that corresponds to products with a retail price of between €50-60 to which a profit percentage of 25% is applied.
Once all of the rules have been created, you will be able to check the sales prices in the simulation column, which compares the retail price with the price that will be displayed in your store:
2.2 Rules per category
In this section, you will be able to customise the percentage of the last level categories like Men’s fragrances. Bear in mind that this rule takes precedence over the previous one.
The operation to create this rule is very similar to the previous rule, Activate it (placing it in the ON position) and click on +
In the drop-down menu, you will be able to select the category you want to modify. In this case, you will add men’s fragrances at 40% profit.
The category in the B2B store may not coincide with the category on the MIP, so you should select the nearest one. If you are unsure, you can go to your MIP > Products, enter the SKU and at the end of BigBuy categories you will find the name you are looking for:
2.3. Rules per product
You will be able to modify the profit margins of specific products by following these simple steps:
1. Search for the product reference for the item you want to set a pricing rule for. You can find this information on the product sheet, for example:
2. Go to the MIP, activate the pricing rules by product and click on the + icon to add a new one. You will also be able to edit or delete them if you wish.
3. On the next screen, you should fill in all of the details and click on “create”. Paste the reference into the “Product” field (for example, S0587191) and set a percentage of profit.
Based on the examples used earlier and bearing in mind that each rule takes precedence over previous ones, you can see that:
- The products in the €50-60 price range will have a percentage of 25%.
- From these, those that belong to the men’s fragrance category will increase this percentage to 40%.
- The specific fragrance S0587191 will lower its percentage to 30% regardless of its price range or category.
3. Safety
The next option allows you to set a safety margin for all of the sales you make. If, for example, you enter “2”, the system will set prices where there is always a minimum profit of €2.
This rules takes precedence over all of the aforementioned pricing rules.
4. Commission
This option allows you to add a general commission to all of the products. This can be useful to add the commission charged by the chosen payment method, for example.
This section will change to “Emarketplace Commissions” in the case of Marketplaces. By activating it, a percentage will be added which equates to the costs that these channels add as a commission for selling on them.
For most products, the Marketplace gives you information about the commission to be applied according to the category. In these cases, your percentage will prevail.
However, for some exceptional products where the MIP does not have the precise value of the Marketplace, you have two options:
- Not entering any amount and 15% being applied regardless of the sales channel.
- Entering a smaller value to that applied by the marketplace
5. Rounding
Rounding is an automatic option that rounds prices to make them visually more attractive.
If you activate this option, you will be able to select one of the four rounding options: #.#0 // #.#9 //#.99 // #,##
6. Price updates
You can use this functionality to ensure prices of certain products don’t synchronise with your sales channel and be able to add them to your store manually.
To do so, you just need to activate the Price updates and enter the product references (SKU) for products you don’t want the prices to be updated for.
Our prices may change over time, since we take into account the market prices and variations of suppliers.
Therefore, we don’t recommend you use this function for many products and that you stay up to date with the potential price changes in our catalogue to avoid generating sales with a negative margin.
