In order to ensure that your profit margins are protected, you should set prices based on the cost of producing the product plus a markup to cover overhead and profit. This is a common pricing strategy known as Cost-plus pricing.
What is the problem and how can this be solved?
Having to manually update all your product prices whenever there is any cost change can become a big hassle in the long run which might impact your profit margins. This process can be automated with the Dynamic pricing tool which ensures a fixed profit margin while also accounting for shipping fees.
Steps to take:
1. Install Konigle to your Shopify store.
2. From your Konigle dashboard go to pricing power strategy, implement "Cost Plus Pricing" tactic.
![](https://cdn.konigle.com/community/media/2023/implement-tactic-f0cb8597deaa4a4fa2463dac3e065727.jpeg)
3. You will be brought to the Dynamic Pricing Tool. Click on Create Pricing Rule Now.
![](https://cdn.konigle.com/community/media/2023/create-rule-69e1cf63560b499aa34cf3fa54dad90d.jpeg)
4. Choose Change with cost > Step 2: Select products.
![](https://cdn.konigle.com/community/media/2023/change-with-cost-b9104b9c277c43dba7e74b99daa4a193.jpeg)
5. Hit Filters to select products. You can then narrow down your search for products or simply choose all Active products. Click Apply Filters.
![](https://cdn.konigle.com/community/media/2023/filter-products-9b77d0fda4d94167b401791de6b09c2d.jpeg)
6. Proceed to Step 3: Configure Rule.
7. Select your Cost type, Markup, and Shipping costs. Then click Step 4: Confirm rule. Refer below for a sample.
![](https://cdn.konigle.com/community/media/2023/example-rule-23c4d2d3594b41d095fa6ac66e872ab1.jpeg)
8. Enter your Rule validity > Create and enable. Leave the fields blank if the rule is not temporary.
![](https://cdn.konigle.com/community/media/2023/rule-validity-79b47d727c09489180a6c6cba1557ca7.jpeg)
9. You'll see a summary of the changes. You can also head over to Pricing Rules tab to see current rules and audit/disable/delete if necessary.
![](https://cdn.konigle.com/community/media/2023/created-pricing-rule-90e5d73244354e8489c3ed94fd48b3fa.jpeg)