Setting Minimum Margins

Why Minimum Margins Matter

Without margin protection, automated pricing could drive your prices below profitability. Minimum margins ensure you never lose money chasing competitors.

How Margins Are Calculated

RightPrice calculates margin using:

Margin % = ((Selling Price - Cost) / Selling Price) × 100

Cost Data Sources

We use cost data from:

1. Shopify cost field: Primary source (variant cost)
2. Manual entry: Set costs in RightPrice settings

Setting Global Minimum Margin

1. Go to Settings > Pricing Rules
2. Find Global Settings
3. Set your Default Minimum Margin
4. This applies to all products without specific rules

Category-Specific Margins

Override the global minimum per category:

1. Go to Settings > Categories
2. Select a category
3. Set a Minimum Margin for that category

Example:

• Global minimum: 15%
• Electronics minimum: 10%
• Accessories minimum: 30%

Rule-Level Margins

Each pricing rule can have its own minimum:

1. Edit the pricing rule
2. Set Minimum Margin in the boundaries section
3. This overrides category and global settings

What Happens at the Margin Limit?

When a pricing rule would set a price below your minimum margin:

1. The suggested price is capped at your margin floor
2. You'll see a warning indicator
3. The rule status shows "margin limited"

Best Practices

• Set global minimum first: Safety net for all products
• Know your costs: Margin calculations require accurate cost data
• Account for all costs: Include shipping, handling, payment fees
• Review regularly: Costs change - update margins accordingly

Further Reading

• Margin Protection While Staying Competitive - Balancing profit and price strategies