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Distributor Mode

Distributor Mode introduces the ability for a product to have multiple distributors, each providing their own cost, retail price, and stock availability. When this mode is enabled, the pricing engine must determine which distributor price to use before applying any pricing strategy (Markup, Markup Range, Margin, or Margin Range) or fallback retail pricing.

This section explains how the pricing engine selects the correct distributor price and how it interacts with existing pricing strategies.

Overview​

Distributor Mode allows the pricing engine to choose the most optimal cost or retail price across multiple distributors. This ensures pricing remains competitive and accurate in scenarios where multiple suppliers may offer different prices or have varying stock levels.

The engine uses a clear and predictable formula to determine the correct price source whenever Distributor Mode is active.

When Distributor Mode Is Used​

Distributor Mode applies only when:

  • The product has multiple distributors defined
  • Distributor Mode is enabled for that product
  • The pricing engine needs to determine the base cost price (for markup/margin strategies) or retail price (when no markup/margin strategy is applied)

If Distributor Mode is not enabled, pricing behavior remains unchanged and follows standard rule logic.

Price Selection Formula​

When Distributor Mode is enabled, the pricing engine follows this formula:

1. If one or more distributors have the product in stock​

Select the lowest cost price among in-stock distributors
→ Used when a markup or margin strategy applies

OR

Select the lowest retail price among in-stock distributors
→ Used when no markup/margin strategy is defined

2. If no distributors have the product in stock​

Select the highest cost price among all distributors
→ Used for markup or margin strategies

OR

Select the highest retail price among all distributors
→ Used when no markup/margin strategy is defined

Why This Logic Exists​

This logic ensures smarter, more realistic pricing:

  • When stock exists, the engine chooses the cheapest available option to keep prices competitive.
  • When nothing is in stock, the engine selects the highest price to avoid accidental underpricing or unrealistic margins.
  • The engine always uses the best data available from distributors before applying pricing rules.

This aligns pricing with real-time availability and distributor market dynamics.

Interaction With Pricing Strategies​

Once the correct distributor price is selected, the pricing engine continues as follows:

If a markup or margin strategy applies​

  • The selected cost price becomes the input for:
    • Markup
    • Markup Range
    • Margin
    • Margin Range

If no markup or margin strategy applies​

  • The selected retail price becomes the base selling price
  • Discount rules may still apply afterward

This ensures Distributor Mode integrates seamlessly with all existing pricing strategies.