How do margin types work and which ones are there?

What is a margin type?

A margin type determines how margins are applied to your products. It is an important tool for managing prices and ensuring profitability. PromoCat offers two different margin types, each with a unique approach to applying margins:

1. Minimum quantity
2. Tiered row

When to use which type?

• Minimum quantity: Use this type if you want margins to depend on the quantity customers order.
• Tiered row: Choose this type if you want to set specific margins per tier row, regardless of the quantity.

Minimum quantity

With the minimum quantity margin type, the system looks at the quantity of a product ordered and links it to the margin tiers in the margin table. This is useful for setting margins based on the quantity customers order.

How does it work?

• Each tier in the margin table has a minimum quantity and a margin factor.
• The margin is applied based on the quantity of the product ordered.

Tiered row

With the tiered row margin type, the margin is linked to a fixed tier row, regardless of the quantity. This is useful for applying margins to a specific tier, for example, during promotions. 

How does it work?

• The margin tier is directly linked to the tier row of the product.
• The margin factor is applied to the linked row, regardless of the quantity.