Margin Formulas

This page explains the math behind each pricing rule type and covers multi-currency, chaining, and rounding.

Cost plus percent

sell_price = supplier_price × (1 + margin / 100)

Example: Supplier price €100, margin 30%

sell_price = 100 × 1.30 = €130.00

Why this is the recommended default:

If the supplier raises their price from €100 to €110:

sell_price = 110 × 1.30 = €143.00

Your margin is always 30%. You don’t need to update pricing rules when suppliers change their prices.

sell_price = supplier_price + amount

Example: Supplier price €100, fixed margin €25

sell_price = 100 + 25 = €125.00

Note: the margin percentage decreases as the supplier price increases:

sell_price = base_price × (1 + value / 100)

where base_price is the price calculated by the previous rule in the chain.

Example: Rule 1 sets cost_plus_percent 20%, Rule 2 adds markup_percent 5%:

base (supplier): €100
after rule 1:    €100 × 1.20 = €120.00
after rule 2:    €120 × 1.05 = €126.00

sell_price = value (fixed)

Example: Hold price at €99.99 regardless of supplier cost.

Risk: If supplier cost rises above €99.99, you sell at a loss. Use the min_margin_percent guard rule to detect this:

Round to the nearest step. Applied as the last rule in a chain.

Input	Round to	Direction	Result
€12.73	0.50	nearest	€12.50
€12.76	0.50	nearest	€13.00
€12.73	0.99	floor to X.99	€12.99
€13.01	0.99	floor to X.99	€13.99

For psychological pricing (e.g. always end in .99), use round_to with value 0.99.

When a supplier feed is in a different currency than the export destination:

supplier_price_local = supplier_price_foreign × fx_rate × (1 + fx_buffer / 100)

Then pricing rules are applied to supplier_price_local.

Example:

The FX buffer provides a cushion against rate fluctuations between the time the rate was fetched and the time the export runs.

A complex real-world rule chain:

Priority	Condition	Action	Note
1	Brand = Nike	cost_plus_percent 40	Premium margin
2	Category = Sale	markup_fixed −10	Discount existing calculated price
3	Supplier = Wholesale A	cost_plus_percent 25	Preferred supplier rate
4	(all)	cost_plus_percent 30	Default
5	(all)	round_to 0.99	Psychological pricing

For a Nike product on sale (brand = Nike, category = Sale):

For a non-Nike, non-sale product from Wholesale A: