What is a floor price?
Your floor price is the lowest price at which you still want to sell an item. Below it every sale costs money, or earns less than your minimum. A repricer uses it as a hard lower limit: however far a competitor drops, your price never goes below it.
How the calculator works
First the VAT comes off your selling price. From what is left you pay bol's commission (a percentage of the price including VAT, plus a fixed fee), the LVB rate if you use it, and your own costs: purchase, shipping, packaging and other costs, all excluding VAT. The floor price is the price that leaves exactly your minimum profit:
floor price = (costs + fixed commission + LVB + profit) ÷ (1 ÷ (1 + VAT) − commission rate)
The break-even price is the same sum with zero profit. The calculator rounds both up to whole cents, so you never end up just too low.
Where to find the numbers
- Commission: the percentage and fixed fee per item are in your seller account under Items. For a first idea per category, see commission per category.
- LVB: the size class of your item is in your seller account. Rates and surcharges are on LVB fees.
- Other costs: think of returns you cannot sell again, or ad spend per sale.
From calculation to pricing rule
Working out one floor price is easy. Keeping a hundred up to date is not: purchase prices and commissions change. Offerboxer works out the floor price per item from your own costs, including VAT and commission, and no pricing rule goes below it. New rules run in dry-run first. See the repricer's pricing.