Danger Zone setting

A feature within the repricer which helps you maintain your margin by preventing the reprice result from falling within a certain price range.

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1. Why using the Danger Zone in the repricer?
2. How does the Danger Zone work?
3. How do I set the  up the Danger Zone in a repricer rule?
   
   

Why using the Danger Zone in the repricer?

One might want to prevent a repricing price from falling within a specific zone because it could lead to a higher commission being charged on the ordered product, resulting in a lower profit margin compared to when the repricing price falls outside this range.

How does the Danger Zone work?

The repricer checks whether the outcome of a calculation is within or outside the set danger zone.

1. Danger Zone  is on and the result of the repricer calculation is within the danger zone of the relevant reprice rule, see point 2.
   
   Danger Zone off or the amount falls outside it, it continues to work as it does now, end.
2. If the price falls within the danger zone, check whether the start of the danger zone is higher than the result of the danger zone minimum formula. If yes, see point 3. If no, see point 4.
3. Use the amount from the field containing the price to be used to get below the danger zone, end.
4. Is the end of the danger zone lower than the outcome of the danger zone maximum formula. If yes, see point 5. If no, see point 6.
5. Use the amount from the field containing the price to be used to get above the danger zone, end.
6. Use the initial result of the repricer calculation and ignore everything concerning the danger zone logic, end.

How do I set the  up the Danger Zone in a repricer rule?

When you open a reprice rule, you will find the danger zone setting on the first tab in the basic settings.

Starting and ending amount danger zone:
Enter here the starting and ending amount in cents of the range that the reprice price outcome should not fall within. Within these amounts lies your danger zone.

Price under danger zone:
Enter here the amount to be used to get below the danger zone range. Make sure this amount is not less than the minimum sales price. If this amount does fall below the minimum sales price, the minimum sales price will be used. This is the first price we try to apply when your repricing result falls into the danger zone. 

Price above danger zone:
Enter here the amount to be used to get above the danger zone range. This amount is used only if the set values do not allow you to go below the danger zone range. Make sure that this amount does not exceed the maximum sales price. If this amount does exceed the maximum sales price, the original result of the repricer will be used, even if it falls within the danger zone range.

Formula for minimum and maximum selling price:
Enter the formula for your minimum and maximum selling price. The extreme minimum and maximum prices we are allowed to use, here you e.g. take into account the purchase price etc. Your reprice result must not fall outside the boundaries. 

Sample scenario:
Above 20 euros: 10.74% + 85 eurocents commission
Under 20 euros: 5% + 40 eurocents commission

Result scenario 1:
In the case of 21% VAT: the danger zone is between 19.99 and 22.21 euros.
In the case of 9% VAT: the danger zone is between 19.99 and 21.96 euros.

You don't want to price on the marketplace between these amounts, because then you pay too much commission and your margin goes down. You immediately price to 19.99 euros as soon as the calculated price falls below the upper limit of the danger zone.