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How do margin types work and which ones are there?

Written by Steven Veenstra

What is a margin type?

A margin type determines how margins are applied to your products. It's an important tool for managing prices and making sure you make a profit. PromoCat offers two different margin types, each with its own approach to applying margins:


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  1. "Minimale afname" (Minimum purchase quantity)

  2. "Staffel rij" (Price tier row)

When do you use which type?

  • Minimum purchase quantity: Use this type if you want margins to depend on the quantity your customers order.

  • Price tier row: Choose this type if you want to set specific margins per price tier row, regardless of the quantity ordered.


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Minimum purchase quantity

With the margin type minimum purchase quantity, the system looks at the quantity ordered for a product and links it to the margin tiers in the margin table. This is useful if you want to set margins based on the quantity the customer orders.


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How it works:

  • Each tier in the margin table has a minimum purchase quantity and a margin factor.

  • The margin is applied based on the quantity ordered for the product.

Product tier quantity

Margin factor

1

1.5

25

1.47

50

1.45

100

1.41


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Price tier row

With the margin type price tier row, the margin is linked to a fixed price tier row, regardless of the quantity ordered. This is useful if you want to apply margins to a specific tier, for example for promotions.

How does it work?

  • The margin tier is linked directly to the product's price tier row.

  • The margin factor is applied to the linked row, regardless of the quantity ordered.

Product tier quantity

Margin tier

1

Row 1

25

Row 2

50

Row 3

100

Row 4

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