Pricing a product when your supplier keeps changing theirs

If you price at cost plus a fixed amount, every supplier increase forces a decision you do not have time to make: absorb it, or reprice and tell customers. A margin floor changes the question. Decide the lowest gross margin you will accept per category — say 45% on ceramics, 55% on stationery — and let the retail price follow the cost upward automatically until you review it. This does two things. It stops you accidentally selling below the floor while you are busy. And it turns repricing into a scheduled task rather than a reaction to every supplier email. Review the floors quarterly. Review individual prices when a product crosses one.