Default Selling Price Rules

What Is a Pricing Rule?

Pricing Rules define how ingredient selling prices are calculated and automatically adjusted as your cost of goods (COGS) changes over time.

Pricing rules are optional. You may choose to set a fixed selling price without using rules.

When pricing rules are applied, any qualifying change—such as an updated cost of goods—will automatically update the selling price. This allows you to manage pricing at scale.

Example:
If a pricing rule applies a 200% markup and you later change it to 250%, every ingredient linked to that rule will update automatically—no individual edits required.

Types of Pricing Rules

There are four pricing rule types available:

1. Exact Price

Sets a fixed selling price that never changes based on cost of goods.

Example:
Charge $0.25 per gram, regardless of cost of goods.

• Does not reference COGS

• Price remains unchanged unless the rule itself is edited

2. Margin

Defines your gross margin as a percentage of the selling price.

Definition:
Margin = Profit ÷ Selling Price

Example:

• Cost of goods: $0.10 per gram

• Selling price: $1.00 per gram

• Margin: 90%

Maximum allowable margin is 99.99%. A 100% margin is not possible.

Margin Calculation Example

• Desired margin: 20%

• Cost of goods (COGS): $0.10

Let:

• X = Margin portion (20%)

• Y = Cost portion (80%)

• Z = Selling price

Calculation:
$0.10 ÷ 0.80 = $0.125 selling price

3. Markup Percentage

Applies a percentage markup on top of the cost of goods.

Example:

• Cost of goods: $0.10

• Markup: 300%

Calculation:
$0.10 × 300% + $0.10 = $0.40

Simpler example:

• 100% markup on $0.10 = $0.20 selling price

4. Markup Fixed

Adds a fixed dollar amount to the cost of goods.

Example:

• Cost of goods: $0.10

• Fixed markup: $0.15

Selling price:
$0.10 + $0.15 = $0.25

Latest Cost of Goods Logic

Most pricing rules rely on accurate cost-of-goods data (except Exact Price rules).

The system determines the latest cost of goods using the following priority:

1. Inventory Upload Cost

   • If inventory is added with pricing, the system calculates COGS from inventory data

2. Supplier Product Cost

   • If supplier products are linked, the highest supplier cost is used

3. Default Cost of Goods

   • Used only if no inventory or supplier pricing exists

Important:
When creating new ingredients, the system uses the default cost of goods until updated. Ensure this value is set.

Creating Default Selling Price Rules

Each Ingredient Type requires its own default selling price rule.

After creating a rule, you can associate ingredients with it.

Navigation

Admin > Settings > Ingredient Settings > Default Pricing Rules

You can apply pricing rules in two ways:

• From the individual ingredient record

• In bulk from within the pricing rule itself

Bulk Managing Ingredients in Pricing Rules

Add or Remove Items

• Click the number in the View column

• Use Add to assign herbs or premixes
  

• 
  

• Select No Rule or another rule to remove items

You can also bulk assign or remove items using the bulk action controls at the bottom of the table.

Default Selling Price Rules allow you to standardize pricing, automate updates, and manage large ingredient catalogs efficiently while maintaining full pricing control.