I use a single supplier for about 80% of my products. Their prices are always changing as they are based on the USD cost, I am in Australia. They have given me a price list of all their products (about 800 of them) in AUD based on a set USD exchange rate.
Most of their products are dropped shipped
What I was wanting to do is to have their products in my store and the store price changes each day based on an automated exchange rate. That way I keep up with their price changes.
So for example of a product:
Their price is $32.43 USD
Based on $1.542 USD exchange rate today they charge me $50 AUD
I add GST of 10% so cost is now $55 AUD
I add a margin of say $20
I add GST of the margin at 10% so $2 AUD
So my sell price is $77 AUD inc GST
The next day
Their price is $32.43 USD (the same)
Based on $1.7 USD the next day exchange rate so they charge me $55.13 AUD
I add GST of 10% so cost is $60.64 AUD
So now my margin comes down from $20 to $14.36. an over 25% drop in margin
And I still have to add the GST of $1.44 on the margin.
What I want is that my store automatically increases the price from $75 to $82.64
To start with I presume I would need an auto exchange rate addin but then how do I set the initial prices in my store i.e. do I use AUD or USD as the base currency? What about all my other products that are not from suppliers using USD? How do I maintain a set margin and not a % margin? How do I manage the GST Tax at 10% on cost and sell prices? etc.
Any advice is greatly appreciated…and thanks