Calculation factor

Automatic price suggestion based on gross margin.

What is the calculation factor

In Flow Retail, you can define a calculation factor to help automatically suggest a sales price based on the product’s cost price and desired gross margin.

The calculation factor is based on gross margin multiplier, not markup percentage.

Example

• A calculation factor of 2.5 means you want a gross margin of 60% (because 100 / 2.5 = 40; cost is 40% of the sales price)

Let’s say:

• Cost price = 100

• Calculation factor = 2.5

Flow Retail will calculate:

Suggested sales price = 100 × 2.5 = 250

This means that for every unit sold at 250, the cost is 100 and your gross profit is 150 — giving you a gross margin of 60%.

Summary

• Cost price × Calculation factor = Suggested sales price

• Helps you price consistently based on your margin goals

• Particularly useful when importing or adjusting large product catalogs

Setting the calculation factor

To set a calculation factor for a product, create a product with the following settings:

1. Type: Not stock controller

1. Markup Factor: The factor you want to apply, for example 1.25 to set the profit margin to 0, if there is a 25% VAT on the product.

VAT must be included in the calculation. For example, if the item has 25% VAT and the factor is set to 1.25, the profit margin will be 0.