What is Max Cost?
The Max Cost represents the maximum amount you should pay for the product to meet the Minimum ROI and Minimum Profit criteria you outlined in your SAS Settings, and worked out as follows: Max Cost = Sale Price* - Min. Profit - Fees - VAT.
- If Sale Price less costs prohibit you from achieving the ROI and Profit you entered in the Buying Criteria of your Settings, the Max Cost will be red.
- If Sale Price less costs do allow you to meet both criteria you set, then Max Cost will be green
The decision to buy the product is ultimately up to you, SAS is just reminding you of the criteria you configured in Settings.
How we calculate all of these items is...
- Max Cost = Sale Price - Min. Profit - Fees - VAT
- ROI = Profit / Cost Price
- Profit Margin = Profit / Sale Price
*Where VAT is paid on the Sale Price, the Sale Price in this equation refers to a VAT-inclusive amount.
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