Setting the right price is one of the most important parts of running your online store. With Win-Cart, pricing is automated using supplier data and your selected pricing strategy. This allows you to manage large product catalogs without manually updating prices.
This guide explains how pricing works, how rules are applied, and how protections like MAP and MRP are enforced to help you avoid pricing issues.
HOW PRICING RULES WORK
Win-Cart uses a priority-based system when applying pricing rules. If multiple rules apply to the same product, only one will determine the final price.
Priority Order:
- Customer-level pricing (lowest priority)
- Source-level pricing (supplier feed rules; overrides customer)
- Brand-level pricing (highest priority; overrides all others)
Brand rules take the highest priority and override all others.
Example:
If a product has a supplier pricing rule AND a brand pricing rule, the brand rule will determine the final price, regardless of the other rules.
EXAMPLE
Product: Marine GPS Unit Model X100
Net Cost $100.00
List Price $150.00
MAP $130.00
MRP $125.00
PRICING STRATEGIES EXPLAINED
Win-Cart allows you to choose how prices are calculated.
1. LIST PRICE
Uses the supplier’s list price directly as the selling price.
Formula: Selling Price = List Price
Example:
List Price = $150.00
Final Price = $150.00
Best when suppliers already control retail pricing.
2. LOWEST PRICE (List / MAP / MRP)
Selects the lowest available value among List Price, MAP, and MRP.
Formula: price = min(list_price, map_price, mrp_price)
The comparison excludes any values that are zero or not set (null). If MAP or MRP is not configured for a product, it is left out of the comparison. This prevents an unset $0 value from incorrectly forcing the price down to $0.
Example:
List = $150.00
MAP = $130.00
MRP = $125.00
Final Price = $125.00 (MRP is the lowest)
Keeps your pricing competitive using supplier data.
3. MARGIN PRICING
Sets price based on a desired profit margin. Margin is defined as the
percentage of the final selling price that is profit.
Formula: Price = Net Cost / (1 – Margin)
Example:
Net Cost = $100.00
Target Margin = 20%
Price = $100 / (1 – 0.20)
Price = $100 / 0.80
Price = $125.00
Verification:
Profit = $125.00 – $100.00 = $25.00
Actual Margin = $25.00 / $125.00 = 20.0%
Note: Margin is calculated as a percentage of the SELLING price, not cost.
4. MARKUP PRICING
Adds a fixed percentage on top of cost to determine the selling price.
Markup is defined as the percentage increase over cost.
Formula: Price = Net Cost x (1 + Markup)
Example:
Net Cost = $100.00
Markup = 20%
Price = $100 x 1.20
Price = $120.00
Verification:
Profit = $120.00 – $100.00 = $20.00
Actual Markup = $20.00 / $100.00 = 20.0%
Note: Markup is calculated as a percentage of COST, not the selling price.
MARGIN VS. MARKUP (Important Distinction)
The same percentage value produces a different result depending on which method is used:
Type Based On 20% Example (Net Cost = $100)
——- ———- ——————————–
Margin Selling Price $125.00
Markup Cost $120.00
Same percentage does NOT give the same result.
Conversion formulas:
Markup to Margin: margin = markup / (1 + markup)
Margin to Markup: markup = margin / (1 – margin)
Example: 20% markup = 0.20 / 1.20 = 16.67% margin
Example: 20% margin = 0.20 / 0.80 = 25.00% markup
5. DISCOUNT PRICING
Applies a percentage discount off the list price.
Formula: Price = List Price – (List Price x Discount)
Example:
List Price = $150.00
Discount = 20%
Price = $150 – ($150 x 0.20)
Price = $150 – $30
Price = $120.00
Useful for promotions or competitive pricing.
6. BRACKET PRICING
Applies different markup percentages (or fixed amounts) based on price ranges, allowing pricing to scale across large catalogs.
Bracket boundaries use precise values to avoid overlap. The bracket ranges are:
$0.00 to $100.00 –> 25% markup on cost
$100.01 to $200.00 –> 20% markup on cost
$200.01 and above –> 15% markup on cost
Example (Percentage Markup):
Net Cost = $150.00
Falls in the $100.01-$200.00 bracket –> 20% markup applies
Price = $150 + ($150 x 0.20)
Price = $150 + $30
Price = $180.00
Example (Fixed Amount Markup):
Bracket configuration:
$0.00 to $100.00 –> $25 fixed markup
$100.01 to $500.00 –> $40 fixed markup
Net Cost = $150.00
Falls in the $100.01-$500.00 bracket –> $40 fixed markup applies
Price = $150 + $40
Price = $190.00
PRICE PROTECTION (Very Important)
After the price is calculated, Win-Cart applies protection rules. These prevent pricing errors and ensure compliance with manufacturer requirements.
The system compares:
- Calculated price (from the selected pricing strategy)
- Minimum margin price (if a minimum margin is configured)
- MRP — Manufacturer’s Recommended Price (if set)
- MAP — Minimum Advertised Price (if set)
- Net Cost (absolute floor)
The highest value among these wins and becomes the final price.
Illustration:
Calculated Price –> $120.00
Minimum Margin –> $117.65
MRP –> $125.00
MAP –> $130.00
Net Cost –> $100.00
Final Price = $130.00 (MAP is highest, so MAP wins)
The original article showed “$118” for the Minimum Margin floor. Using the documented formula with a 15% minimum margin:
Floor = $100 / (1 – 0.15) = $100 / 0.85 = $117.65
MAP PROTECTION
Your price cannot go below the Minimum Advertised Price (MAP).
- Critical for manufacturer compliance
- Prevents account issues with suppliers
MRP PROTECTION
Your price cannot go below the Manufacturer’s Recommended Price (MRP).
- Helps maintain pricing consistency across sellers
MINIMUM MARGIN PROTECTION
Ensures you do not sell below your profit target.
Formula: Minimum Price = Net Cost / (1 – Minimum Margin)
Example:
Net Cost = $100.00
Minimum Margin = 15%
Minimum Price = $100 / (1 – 0.15)
Minimum Price = $100 / 0.85
Minimum Price = $117.65
If your calculated price is lower than $117.65, it gets adjusted upward to $117.65.
COST PROTECTION
You will never sell below net cost.
If the final price would fall below net cost:
–> Price resets to the supplier’s list price.
This is the absolute floor — no pricing option or protection can result in a price below net cost.
WHY THIS MATTERS
Without these rules, stores often run into:
- Pricing below MAP (supplier policy violations)
- Selling at a loss
- Inconsistent pricing across products
- Manual errors in large catalogs
Win-Cart prevents these issues automatically.
FINAL TAKEAWAY
Pricing in Win-Cart follows a simple flow:
Step 1: Apply pricing rule (List, Lowest, Margin, Markup, Discount, Bracket)
Step 2: Check protections (MAP, MRP, minimum margin, net cost)
Step 3: Use the highest valid price
This ensures:
- You stay compliant with supplier requirements
- You protect your margins
- Your pricing remains consistent across your catalog