Shopfront supports a number of different ways to set prices and to have prices calculated, this article describes the settings most important to setting and calculating prices and multiple methods of adjusting prices.

Configuring how Shopfront Calculates Prices

Settings to configure prices can be found in the general settings, this can be accessed by performing the following:

1. Open the Menu
2. Expand Setup
3. Select General

Quantity Rate / High Mix Price

Type: Company

Section: General

The Use quantity rate toggle determines how products should be sold after they have passed the previous price point. When the toggle is enabled we call this Quantity Rate, when it is off we call this High Mix Price.

Quantity Rate works by taking the best "price rate" for the product which it is equal to or past (it divides the price by the price point's quantity and then multiplies this rate by the purchase quantity).

High Mix Price works by incrementally adding the previous price points until we reach the purchase quantity.

Imagine you have a product with the following price points:

If Quantity Rate is enabled the price for the quantity of 7 will be $17.50

• $15 divided by 6 which equals $2.50. Multiply $2.50 by the quantity of 7

If Quantity Rate is disabled (high mix mode) the price for the quantity of 7 will be $18.50

• $15 for the quantity of 6 plus $3.50 for the quantity of 1

Family Price Distribution Method

Type: Company

Section: General

The Family Price Distribution Method only applies when Quantity Rate is disabled (high mix mode).

There are two options for distributing the prices among products when part of a family. You can distribute the prices Evenly or Match Price Points.

For the example below, assume a family of products has the following price points:

The family price distribution methods would distribute the price as per below with the following quantities in the sell screen:

As seen in the example above, the price for product A is higher than the normal 4 pack price when distributed evenly.

Another example looks as follows:

The price distribution of Product E is significantly lower than that of the other products at the same price point, which could result in a lower profit for that product (the overall profit for the sale will remain the same).

Another example could look as follows;

Whilst trying to maintain the 4 pack quantity pricing structure with the quantities of 12 & 8, the price for the quantity of 5 has become negative to compensate for the total price. 

Evenly distributing the prices may require staff to educate the customer in some circumstances.

Matching price points with random quantities can result in unexpected prices.

Price Rounding Mode

Type: Company

Section: General

The Price Rounding Mode determines whether a product's sell price should be distributed or rounded when the number of decimal places of the calculated sell price exceeds the currency's number of decimal places.

Presuming you're using a two decimal place currency (like Australian dollars) and have a promotion which is setup as sell 3 for $10, you'll end up with the following price distribution:

In this scenario, the Redistribute option gave you the exact same sell price as what the promotion is advertised at. However in scenarios where you have products that normally sell at a higher number of decimal places (e.g. fuel, deli products), this may be undesirable.

Imagine you have a product which sells for $1.419 and you buy 35 of them:

Because the total comes out to $49.665 (before rounding), the Round mode is more accurate in this scenario.

If you're not selling products that typically go to more decimal places than your currency displays we would suggest running on Redistribute mode.

Cross Promotion Count

Type: Company

Section: General

The Cross Promotion count toggle determines whether products that are on promotion, but not active on that promotion should count towards the quantity of the promotion. 

If you have two promotions:

• buy 2 at $20.00
• buy 6, get 10% off

and two products:

• product A, included in both promotions, selling price of $15.00 each
• product B, included in buy 6 promotion only, selling price of $10 each

and sell:

• 4 of product A
• 2 of product B

With Cross Promotion count enabled this will result in a combination of both promotions:

• product A will be sold for $40 (2 x the 2 at $20 promotion)
• product B will be sold at $18.00 (10% off the two items)

With Cross Promotion count is disabled Shopfront will choose between the two promotional options and select the end price that's cheaper for the customer. In this case, it will result in:

• product A will be sold for $40 (2 x the 2 at $20 promotion)
• product B will be sold for $20 (the normal sell price)

Note: Having Cross Promotion Count allows promotions to be calculated significantly quicker, if you're having performance issues, consider enabling it

Setting Prices in Shopfront

Shopfront supports a number of different ways to set prices and supports doing so in a number of different places.

How do I know what to set my Prices at?

Whilst Shopfront can't provide assistance with what you should set your prices at, stores typically set prices using a few factors:

• Recommended Retail Prices,
  • A number of suppliers will provide you with recommended retail prices and some products may even have maximum shelf prices, these are a good base to get you started with what price you should be running at.
• Category / Industry Profit Percentage,
  • Each category will have a standard profit percentage to determine how much you can typically make from a product (category a may have a standard profit percentage of 30% and category b may have a standard profit percentage of 20%).
• Market Leaders
  • A common strategy for driving business is to price your market leading products at a close-to-cost price and then upsell customers to higher profit products.
• Competitor Pricing
  • Another common method is to check what your local competitors are charging for the same or similar items in your area to get a guide of prices

What Options are Available for Setting Prices?

• Everyday Prices
  • Your normal everyday prices
  • How to Create a New Product
  • Using the Stock List
  • Price Sets
• Promotions
  • These allow you to reduce the price of your products for a limited time
  • Express Promotions
  • Advanced Promotions
• Price Lists
  • These are custom pricing rules for specific groups of customers
  • How to Apply Special Pricing to Customers
  • Create and Edit Price Lists
• Future Prices
  • Shopfront supports setting prices to take effect in the future (overriding the everyday price)
  • Future Prices
• Surcharging
  • Whilst not specifically pricing, Shopfront also supports public holiday style surcharging which can increase or decrease your prices globally for a period of time
  • How to Activate Surcharging

Commonly Asked Questions

Can I set my prices based on the last cost but work off average cost for reporting purposes?

If your Cost Calculation is set to Average Cost or Mixed Mode and you wish to set your sell prices based on the last cost while maintaining the average cost for reporting purposes, you can follow these steps:

1. Open the Menu
2. Expand Setup
3. Select General
4. Select Company
5. Select the drop-down menu for Set Prices Based On

Change this to Last Cost to set your prices based on the Last Cost of the product, you can also change this to Highest Cost so that the Highest Cost between Last Cost and Average is applied when setting prices.

Note: Changing this setting does not affect how Shopfront calculates the cost for sales.