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Profit mode
Your profit mode selection determines how the value in Profit calculates, either as a monetary amount that adds to the value in Cost of Goods or as a percentage of the value in Cost of Goods.
Description
A price floor calculates as:
You can select your profit mode on the Settings tab under Pricing General.
Caution Profit mode is a global setting. When you change your profit mode, all inventory with an applied profit value—applied either at the inventory group or item level—switches modes and reprices accordingly. For example, 25% would change to $25.00 if you were to switch your profit mode from percentage to monetary.
For example, let's say that you:
- Set your profit mode as Profit is percentage of Cost of Goods.
- Set up an inventory group with the following values:
Cost of Goods = $10.00
Profit = 25%
Floor Modifier = $1.00
Your price floor for all items in the inventory group calculates as:
- $13.50 Price Floor = ($10.00 Cost of Goods + 25% Profit) + $1.00 Floor Modifier
If you change your profit mode from Profit is percentage of Cost of Goods to Profit is a monetary amount, items in the inventory group reprice as follows:
- $36.00 Price Floor = ($10.00 Cost of Goods + $25.00 Profit) + $1.00 Floor Modifier
See also
Pricing overview
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