Trade-in Pricing Rules
The trade-in pricing rules are how you set the amount of credit you offer your customers for trading-in their items. There are three rules which you can choose from:
1. Fixed Value
The Fixed Value rule will offer a fixed price regardless of what the original purchase price was. e.g. £5 per item
2. Fixed Percentage
The Fixed Percentage rule will offer that % off the original purchase price (OPP) of the item. e.g. if the OPP of a t-shirt was £20 and you set the Fixed Percentage rule to 20%, the customer would be offered £4 credit.
3. Dynamic Value
The Dynamic Value rule allows you the most flexibility over the pricing, taking into account the age and the OPP of the item.
To set up a dynamic pricing rule, you need to specify a Maximum (Max) and Minimum (Min) % of the OOP that you want to offer and the timeframe over which you wish the Max % to depreciate to the Min %. Once you have entered those details, hit the Calculate button and a table will be generated that lets you visualise your Dynamic Value rule.
Our pricing engine uses a simple depreciation function to calculate how quickly the % value offered falls from its Max to Min. If you want to alter how quickly the % value offered depreciates (or even appreciates!) then you can manually enter values into the fields that appear underneath the graph. You can enter as many of as few as you like and our pricing engine will fill in the rest of the values. Smart right!
Important points to note when setting up a dynamic trade-in profile:
For the Dynamic Value rule to begin once the products in the profile are eligible for trade-in (i.e. they reach their Minimum age), the Start age must match the Minimum age set in the eligibility settings. Otherwise, the Dynamic Value rule could begin before or after the products in the trade-in profile become eligible. This is fine if you want the value of the product to start depreciating from the minute the product is first purchased.
You must hit the Calculate button to generate the table before you can save the trade-in profile.
If you adjust the Min or Max age in the eligibility settings of the trade-in profile, it will reset the Dynamic Value rule, so you'll need to set it up again.
Common questions about the Dynamic Value
Can I set the time intervals used by the Dynamic Value table (i.e. intervals of 1 months rather than 2 months)?
Currently, you cannot state the time intervals that the Dynamic Value rule generates between the Start age and End age. The interval is determined to be the minimum such that there is up to 13 intervals:
For max ages <= 3 months, that means 13 intervals of 1 week
For max ages of 3-12 months that means 13 intervals of 1 month
For 12-24 months it is 13 intervals of 2 months; and so on.
Do you have a tool that I can use to help me price my items?
Not just yet, but we are working on a tool to let merchants play around with the Dynamic Value pricing rule outside of the app
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