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The minimum margin variants of the strategies (Match The Cheapest and Beat The Cheapest) replace the fixed minimum price with a price floor calculated from your costs and a target margin. This keeps every automatic price change profitable.

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Requirement: unit cost in Shopify

The margin calculation needs the cost per item. PricePirate reads the variant’s cost per item from Shopify.
If a minimum margin is enabled but no valid unit cost is set in Shopify (and no manual value is provided), no price change is created. Set the cost per item in Shopify, or fill in the Unit cost override field.

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The calculation

From unit cost, fixed cost, sales tax, and transaction fee, the price floor is determined as:
Rates are entered as decimals (19% = 0.19; 3% = 0.03; 20% margin = 0.20). Your shipping cost is additionally credited as shipping revenue, lowering the required product-price floor accordingly.

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Worked example

Assumptions: unit cost 10.00 €, fixed cost 2.00 €, minimum margin 20%, sales tax 19%, transaction fee 3%, no shipping cost.
  1. netRevenueFactor = 1 ÷ 1.19 − 0.03 = 0.8403 − 0.03 = 0.8103
  2. Cost base = (10.00 + 2.00) × 1.20 = 14.40 €
  3. Margin floor = 14.40 ÷ 0.8103 = ≈ 17.77 €
So PricePirate would never lower the price below ~17.77 €, even if a competitor is cheaper.
The higher of the calculated margin floor and any other limit always wins. If a configured maximum price is below the margin floor, no valid price can be calculated and no change is created.

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Availability

Minimum margin is available as the “with minimum margin” variant of both strategies:

Match The Cheapest

“With minimum margin” variant.

Beat The Cheapest

“With minimum margin” variant.