A customized Repricing Rule example from our long-time BQool user, Chris, was shared on BQool’s YouTube Channel: BQool Master Rule from Chris- A rule to conquer them all.
The rationale behind this Rule creation is to only compete with the Buy Box and carefully maximize the Profit margin. For the rest of the paragraph, I will explain the reasoning behind each setting. The user can have a quick overview of the Rule in PDF form here.
Please note that the Rule was created from an FBA sellers point of view.
Stay in Buy Box Setting:
The concept here is designed only go up against Amazon and FBA sellers so as to avoid profit lost while the Buy Box is obtained. Since the Buy Box Setting is Raise my Buy Box Price to Maximize Profit, the system will match Your Price with the next higher eligible Competitor’s Price and maintain a higher profit margin when competing with Amazon and FBA sellers.
The Price Change Safety Net
The Price Change Safety Net is enabled to work as a protection setting, which prevents a significant price drop per repricing change. If you do get repricing down, the system will detect whether the adjusted price is no more than 20% of your last price. If it does so, the system will only change Your Price to 5% less.
The Repricing Setting:
The general goal here is to compete for Buy Box ownership on all fronts and match the Your Price with the eligible competitor’s price.
Here are 3 worth mentioning scenarios here and will get explained respectively:
For “When you are the only seller” Scenario:
Since the whole playfield is yours, Min Price + 50% as the final adjusted price is actually pretty reasonable. “It’s not too much. But it is a lot higher than what you would have been offering while you have competition,” as Chris mentioned in the YouTube video.
For “Buy Box Winner found below Min and Above Max” scenarios:
Normally, the Buy Box Winner is found below your Min Price. Since maximizing the profit margin is one of the top priorities of this Repricing Rule, Chris chose ”Do Not Reprice” as the response.
For “When Buy Box is suppressed” scenarios:
General speaking, the Buy Box has been suppressed. You can choose “Do not reprice” to protect the profit margin. Alternatively, if the Buy Box has been suppressed too long, you can switch to compete with the lowest price to trigger more repricing activities.
Price Change Safety Net for Repricing Settings
It’s the same Safety issue from Buy Box setting. Please enable the Safety Net to prevent the price drop from being too drastic.
A quick reminder here, the advanced setting will override your Repricing setting.
There are only two settings enabled here (FBA vs FBM and FBM vs FBA):
1. For FBA vs FBM situation,
the final adjusted price is set to be Buy Box Price + 10 % when the Buy Box Price is either above or equals your Min Price. Since the FBA sellers have great advantage win over the Buy Box from FBM sellers, the method should be able to get Buy Box for most of the cases and help the listing maintain a higher profit margin.
2. For FBM vs FBA situation,
the final adjusted price is set to be Buy Box Price -5 % when the Buy Box Price is above the Min Price. To overcome the disadvantage against FBA sellers, a minor profit adjustment is still acceptable for FBM sellers and helps to stay competitive.
Custom Setting here is designed not to compete with sellers who have really low Feedback ratings or counts.
Also, note that the Backordered sellers have been excluded. The reason is that Backedordered listings tend to have lower price offer. Moreover, since Buy Box normally don’t go to the sellers with handling time more than 2 days, excluding this factor can increase your chance to win the Buy Box.
Lastly, the item condition feature generally is frequently used by Booksellers. To competing against Booksellers in same or Better condition is regarded as a better positive approach.