4. How repricing works¶
Here is the explanation on how the system calculate the best price for each product / channel
Depending of your subscription, Smart Price server will watch compeitors on the channels for all your product with a different frequency and then, the datas will be available in Smart Price.
When does repricing runs ?¶
Smart price automatically run a repricing when :
- Competitor information change for a product : when the new data are downloaded from the Smart Price server, product price is automatically re-calculated
- Every evening, Smart Price run a full catalog repricing
- When you change a product behaviour (form the Price wizard grid OR from the product view)
You can also launch a full repricing :
- Using Smart Price > Tools > Configuration > Repricing > Reprice now button
When you change rules parameters or when you add a new rule, you MUST run a full catalog repricing
You can also run a full repricing by command line (to launch being in the magento root directory) php shell/bmsPerformanceRepriceAll.php
Does repricing is enabled for that product /channel¶
By default,repricing is enabled for every products on every channels.
If you want to exclude products or channels from repricing, you must configure a “Products to reprice” rule.
Calculate the target price¶
Next, the system retrieve all competitors for the product / channel (you can view competitors from the product view OR via menu smart price > All offers
Then, system Pick the competitor to beat with depending of the settings from the “Price adjustment” rule : compete with the best price OR with the best rank (BuyBox Winner)
Once the competitor is selected, Smart Price calculate the target price using the adjustment method from the “Price adjustment rule” : for instance, if the competitor total price (price + shipping) is 100 and your “Price adjustment” settings are “Percent and 3”, the target price is 97. The target price is the price the system will TRY to reach if the other conditions (cost, margins, minimum price) allow it.
Calculate the base cost¶
The next step is to calculate your costs. Basically, a product cost includes :
- Buying price (Cost rule)
- Additional costs (Additional cost rule)
- Shipping cost (Shipping cost rule)
Using all this rules, the system calculates the basic cost for the product.
Market place referal fees¶
To properly calculate the ideal price, Smart price also considers the commission (fees) applied by the market places (for instance, Amazon retains 15% on each sales).
To define the fees, you must use the “Comission” rule type. A best practice is to setup one ruel per channel and per product category so you can fill accurate fee percentages.
Note : for Amazon, Smart Price is able to automatically download fee percentage per products using your MWS credentials, so you dont have to setup a rule for amazon.
Note : if you use Smart Price to adjust price on your website, setup a rule with a 0% fee for the specific channel
Retrieve Margin levels¶
Next, Smart Price must consider your margin levels to calculate the minimum price. The margin level to use depends of the product behaviour.
Smart price supports 3 different behaviours : Conservative,Moderate and Aggressive.
The aggressive behaviour doesnt have a margin level associated, as the goal of this behaviour is to get the lowest price without considering costs and profit (used for clearance sales).
For the conservative & moderate behaviour, you can assign a margin level to each one using the “Margin” rule types.
Can we apply the Ideal price ?¶
Based on every previous steps, Smart price nows decides if he can apply the ideal price or not : the only condition is too respect the margin levels your specified.
Note : if the product behaviour is set to “aggressive”, the system will skip that step and apply the ideal price directly.
Let’s take a product for which the behaviour is moderate, and the associated margin level is 30%, Smart price will apply the ideal price if the margin provided is equal or greater than 30%
Note : if the product has no competitor, the “No competitor price” rule is used to calcualte the ideal price and NO margin verification is performed.
If the margin level is not respected, then Smart Price will INCREASE your price to obtain a price that fullfills your minimum margin level requirement.
Check min / max limits¶
The last control performed by Smart Price is for the minimum / maximum price rule. Those rules are optionnal.
If the ideal price doesnt respect those limits, then Smart Price adjusts it accordingly
Save the calculated price¶
Once the final price is calculated, Smart price can save it into any product attribute for a future used (for instance by an extension like Boostmyshop Amazon, Boostmyshop Cdiscount or M2EPro).
You can configure the attribute to use per channel from menu Smart Price > Tools > Configuration > Repricing :
Note : to really store calculated price, options “Enable” must be enabled and “Test mode” must be disabled.