Introduction
When you import a product with GOGETTERS, we calculate a selling price for it automatically. This article explains, step by step, how that price is built up - so you always know why a product costs what it costs in your store.
The terms you need to know
B2B price (also called purchase price or cost price): the amount you pay the supplier for the product. Suppliers give us this price excluding VAT.
SRP (Suggested Retail Price): the selling price the supplier recommends for consumers. This price includes VAT.
VAT: the sales tax you must charge your customers. We use the high VAT rate of the country your company is registered in (for example 21% in the Netherlands).
Margin: the percentage or amount you add on top of the B2B price (or SRP) to make a profit.
MAP (Minimum Advertised Price): a minimum selling price some suppliers require. See Minimum advertised price (MAP).
How the price is calculated
For every product we go through the following steps, in this order. The first pricing method that applies to your supplier connection is the one that is used.
Advanced price rules. If you have created advanced price rules for this supplier, those rules decide the price and all other margin settings are skipped. See Advanced price rules.
B2B price margin. If you have set a margin on the B2B price, we take the B2B price, add your margin, and then add VAT on top.
SRP margin. If you have set a margin on the SRP instead, we take the supplier's SRP (which already includes VAT) and add your margin to it.
No margin set? Then your selling price is simply the supplier's SRP.
After that, two finishing steps are always applied:
MAP protection. If the supplier has set a Minimum Advertised Price for the product and your calculated price is below it, we raise the price to the MAP. This protects you against selling below the price the supplier allows. See Minimum advertised price (MAP).
Rounding. If you have set price rounding (for example, always end on .95), we round the price as the very last step. See Psychological price rounding.
Good to know: you can only use one simple margin at a time. If you enter a B2B price margin, the SRP margin is set to 0 automatically, and the other way around.
Shipping costs are never included: the prices shown in the GOGETTERS app are always excluding shipping costs, so take these costs into account when calculating your final margin. Whether a supplier charges shipping costs, and how much, is shown under Browse suppliers in the app.
A calculation example
Say a product has a B2B price of €10.00 (excluding VAT), you set a B2B price margin of 50%, your VAT rate is 21%, and you round prices up to .95:
B2B price + margin: €10.00 + 50% = €15.00
Add VAT: €15.00 + 21% = €18.15
Round up to .95: €18.95
The product will appear in your store for €18.95. Your gross profit on this sale is the price excluding VAT (€18.95 ÷ 1.21 = €15.66) minus the B2B price (€10.00) = about €5.66. This is exactly what the profit calculator in the import list shows you. See How the profit calculator works.
An SRP margin example
Say the same supplier gives an SRP of €20.00 (including VAT) and you set an SRP margin of 25%:
SRP + margin: €20.00 + 25% = €25.00
No VAT is added in this case, because the SRP already includes VAT.
What if the supplier has no SRP? If a supplier does not provide an SRP for a product, we use the B2B price plus VAT as the SRP.
Where do I change my price settings?
In the GOGETTERS Shopify app:
Go to Suppliers.
Click Settings on the supplier you want to change.
Scroll to the Price margins section.
In the GOGETTERS portal (WooCommerce, Prestashop, CCVShop) you will find the same settings as sliders on the supplier's settings page, in the Price margins card.
Read more about setting margins in Set your margins per supplier.
Prices of products already in your store
Changing your margin settings does not automatically change the price of products that are already in your import list or in your store. To reprice those products, click Update all product prices on the supplier settings page. If you want prices to follow supplier price changes automatically, enable Auto update pricing. See Automatic price updates.