Follow these steps to set up your default selling price formula for your WooCommerce items. If your items do not have any override formula on them, then this will be the formula that is used for your pricing.
1. Log into Sku Grid https://skugrid.com
2. Click Settings --> Marketplaces --> WooCommerce --> Country you're selling on.
3. Scroll down until you see the Calculating WooCommerce Selling Price section. Then click the Switch to Wizard View button. It's always best to use the formula wizard to create your formulas as it leaves less room for error. Writing your own long, written formula is for advanced users.
4. The formula wizard will open and you will be able to enter in any values that are comfortable with and that suit your business model. All fields will be explained below.
Vendor Tax % - This is the percentage that you want to mark up the item for possible sales tax that you might have to pay. Vendor tax is calculated based on the supplier's item cost. If you do not want to mark up for vendor tax, then enter 0; otherwise, enter the a numeric value.
Margin % - This is the amount of profit that you want to take home after all fees and vendor tax are considered. Margin % is calculated based on your supplier's item cost. If you do not want to use this field, enter 0. Otherwise, enter a numeric value. Please note, you cannot use negative Margin % values.
Fixed Margin $ - This is a dollar amount for profit that you want to take home in addition to whatever you have in margin %. If you do not want to use this field, enter 0. Otherwise, enter a numeric value.
Minimum Margin $ - This is the lowest amount that you would like to take home for profit (in dollar amount). This is only really relevant when selling low cost items and you're using margin %. For example, you're set up to bring home 10% profit margin, and you're selling a $100 supplier item, you'd expect your profit to be $10. But if you were selling a $10 supplier item, the profit would only be $1. This is where minimum margin kicks in. If, you had a minimum margin of $2, for example, on the $100 item, the minimum margin is ignored, because you're already profiting more than that amount. But on the $10 supplier item, your selling price would be increased so that you bring home a profit of $2 instead of $1. If you do not want to use this field, enter 0. Otherwise, enter a numeric value.
PayPal Fees % - Here you would enter your merchant fee percentage for processing your payments. If you're using PayPal, it's typically 2.9%, but could be higher if you are an international seller or have other circumstances. Enter your PayPal Fee Percentage here or enter 0 if you do not want to use this field. It is calculated as a percentage of your selling price, not supplier price.
Paypal Fees $ - Paypal's transaction fee is typically $0.30. Enter your transaction fee or enter 0 if you do not want to use this field.
WooCommerce Fees % - You can enter 0 here as you will not have any WooCommerce fees since you're selling on your own website. However, if you have any other sort of percentage based fees that are calculated on the selling price of an item (i.e. you pay a partner a percentage that an item sells for, etc.), then you can enter that number here to mark up the item for that. This field is calculated based on the selling price of the item, and not the supplier price.
Include Supplier's Shipping in Calculations - This is a Yes or No option. Select Yes, if you want to factor in a supplier's shipping cost (if known) into the pricing of your items or select No if you do not. Please note: We can only factor in shipping costs when they are known (i.e. visible on the supplier's product page or if they use flat rate or tiered shipping that is seen on their shipping terms pages). If a supplier uses what's known as "Calculated Shipping", you'd need to mark up your formula higher to account for it.
Convert to a Different Currency - This option will only need to be used for those who are selling in a country that they do not reside and wish to convert from one currency to another.
5. Once you're done, click Estimate Price. You'll receive a pop up that will start with a supplier price of 100 entered for easy math. Just click OK.
6. The estimator will show you what your selling price would be based on a supplier price of 100 and the formula that you've entered. Click OK to close this pop up.
7. If you are good with how your formula calculates, you can just click the Close button to exit the wizard. If you are not happy with the formula that you've created, make your changes to the formula fields, estimate your price again, and then Close out of the wizard once you're satisfied.
8. Click Save Settings.
9. You will receive a yellow alert letting you know that your Settings were saved.
Additional Formulas Are Optional. If you would like more information on what they are and how you can use them, please CLICK HERE for video.
A few special notes:
1. You can set a formula for one general markup over supplier cost by enter 0's for all formula fields in the Formula Wizard and entering your overall markup in the Margin % field. (For example, some people just want an overall markup for 40%, so they would enter 40 for Margin % and 0 for all other formula fields).
2. You can set formulas in dollar amounts instead of percentages. To do this, you would enter all formula fields as usual, but instead of defining profit in Margin %, you would enter 0 there and just use the Fixed and Minimum Margin $ fields. Both should be the same.
3. You can set negative margins. This would be done by setting negative dollar amount margins in the Fixed and Minimum Margin fields. You cannot use negative numbers for Margin %. All other formula fields would be as usual. If you're using negative margins that would cause you to have prices lower than your supplier costs, be sure to also enable that feature in your Sku Grid General Repricer Settings. Ignore, if you're not doing negative margins.