# How does Colect calculate wholesale prices using margin and discount groups?

Below is an explanation of how **Margin Groups** and **Discount Groups** work in the system:

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#### **Margin Groups**

When a customer is assigned to a margin group, Colect calculates the wholesale price based on the retail price (RRP) using the specified margin factor. The current wholesale price in the price element is **ignored** for these customers.

\
**Important:** A retail price **must** be provided for all margin-based customers.\
If **all** customers use margin-based pricing, you do **not** need to include a wholesale price in the product data — Colect will calculate it automatically based on the RRP and margin.

***

#### **Margin + Discount**

If a customer is assigned to **both** a margin group and a discount group, the system:

1. Calculates the wholesale price using the RRP and the margin factor.
2. Applies the discount percentage to the calculated wholesale price.

**Example**\
Customer: 11003114 (Margin Group 2.7)

* RRP: €119.95
* Wholesale: €119.95 ÷ 2.7 ≈ €44.43
* Discount (30%): €44.43 × 0.70 ≈ €31.10

***

#### **Discount Only**

If a customer is **not** in a margin group, Colect uses the provided wholesale price and applies the discount directly.

**Example**\
Customer: 11001806 (Discount Group Only)

* Wholesale: €46.10
* Discount (30%): €46.10 × 0.70 = €32.27


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