Setting base prices for planned sales
A sale is only a good sale if it still protects your margin. The trick is to work backwards: decide the margin you must keep at the deepest discount, then set the everyday base price so the sale math works out.
Plan backwards from margin
- Pick the floor margin you refuse to go below during a promotion — say 40%.
- Pick the maximum discount you plan to run — say 25% off.
- Set the base price so that after the discount you still clear the floor margin.
Worked example. Cost $12, floor margin 40%, max discount 25%.
The discounted price must be at least 12 / (1 - 0.40) = $20.
So the base price must be at least 20 / (1 - 0.25) = $26.67. Round to $26.99, and a 25% sale still lands at $20.24 — safely above your floor.
Do it across the catalog with a formula
Instead of pricing product by product, set base prices in one pass with a formula that already bakes in the sale headroom:
| Goal | Formula |
|---|---|
| Base holds 40% margin after a 25% sale | cost / (1 - 0.40) / (1 - 0.25) |
| Charm-price the result | add rounding to nearest $X.99 |
Then schedule the sale
Once base prices are set, use Scheduled Operations to apply the discount at a start time and automatically revert to base when the sale ends — no late-night manual edits. See Schedule a sale that reverts itself.
Common mistakes
- Discounting off a price that was already thin. If the base only holds 30% margin, a 25% sale can wipe out your profit.
- Forgetting shipping and fees. Add them into cost (e.g.
cost + 4) so the floor margin is a net margin.
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