What is Soft and Hard Limit?

Soft and Hard Limits are used to safeguard from setting a price lower than the cost (Cost Price) and to avoid excessive discounting.

NOTE! Both limits define the markup on top of the Cost Price and are not influenced by the Price Source when configuring the markup. 

The Soft Limit defines the limitation for the Account Manager while the Hard Limit defines the one for the Seller admin.


NOTE! Price configuration based on Retail Price can incur loss if Cost Price will be higher. Use Cost Price if in doubt regarding Price base.

For example, a user with the permission Seller admin has set:

  1. Price Source: Retail Price (this is by default setup).
  2. Markup: 0%
  3. Soft Limit: 20%
  4. Hard Limit: 10%
  5. Cost Price: 3.37 EUR
  6. Retail Price: 4.20 EUR

When applying calculations: 

  • Soft Limit defines the minimum allowed price to be set by Account Managers:
    • x = 3.37+20% = 4.04 EUR
    • As such, the Account Manager can give a maximum discount of 3.8% for this offer:
      • (4.20-4.04)/4.20 *100% = 3.8%
  • Hard Limit defines the minimum allowed price to be set by Seller admin:
    • x = 3.37+10% = 3.71 EUR
    • The Seller Admin can give a maximum 11.7% discount for this offer:
      • (4.20-3.71)/4.20 *100% = 11.7%
NOTE! There are certain conditions to be met:

1) If Price Source = InPrice:
    Soft Limit Hard Limit Markup
    & Markup ≥ 0

2) If Price Source = Retail Price:
    Soft Limit  Hard Limit
    Markup ≥ [(InPrice - Retail Price)/Retail Price] x 100%

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