Inventory Item Pricing2011 National Conference

Inventory Item Pricing2011 National Conference

Item Information

• Option 1 will let you do all item price updates except global price update.

• Option 2 is for updating item information unrelated to price.

Margin vs Markup

• Margin % is how much margin is in the sales price 10% margin is greater than 10% markup

– if $10.00 cost and a 10% markup the selling price is 10 x 1.1 = $11.00

– if $10.00 cost and a 10% margin the selling price is 10 / .90 = $11.11

• If margin % and margin $ are both specified the margin % is calculated and then the margin $ are added to that.

Promotional pricing and Margins

• Sale prices are for all locations.

• Sale prices can be entered ahead of time and will take effect on the beginning sale date.

Price Levels

• Price levels can be setup with or without markup % and markup basis

• A price level must be setup prior to entering items into it.

• Store counter allows price levels without maintaining the price in every item

• The markup basis can now be another price level.

Item price levels

• If setup by location price can vary by location. If no location, all locations have the same price.

• Update price code relates to whether Global Price Update can modify this item price level.

• Quantity breaks can only be accomplished with price levels.

Item Rounding File

• The rounding file gives you the ability to round prices the way you want.

• With a .01 round up increment it is even cents

• If you run global price update you don’t want .995 for a selling price.

Item Rounding File

• With a .01 round up increment it is even cents

• Prices are only recalculated if they are 0.

• Margins are only recalculated if they are 0.

Item Rounding File

• This says if the selling price is under $1.00 don’t use this rounding record but if over $1.00 end the price in .09

• It will round up to the next fixed price.

Item Rounding File

• Rounds up to the nearest price ending in .09

Change prices all at one time

• Fastest way to manually maintain prices

• If no location is entered it updates all locations

• Brings up all price levels this item is in

Customer Price Level

• Customers can be assigned to a price level

• This is the only way to change price levels in store counter

Minimum Amount

• There is also a minimum amount in the item file for things like delivery charges. For example a unit price of $10.00 a ton with a $25.00 minimum. If the quantity was 2 tons there would still be a $25.00 charge.

Global Price Update

• When the cost of an item changes, update the selling price by running Global Price Update. This is option 12 on the item menu. The selected items will use either the replacement cost, or the standard cost in the item balance file to calculate the selling price.

• This is a two step process first it goes through the blends file and updates the replacement cost of finished products by adding up the costs of the ingredients.

• Newly added it now also goes through the feed rations file to add up costs of ingredients.

• Next it calculates new selling prices based on the margin % and margin amounts in the items.

• It updates all selected items, so you don’t need to use blends to use Global Price Updating.

Global Price Updating

• You can select whether Retail and Dealer price levels are updated.

• Base update on Standard or Last Cost.

• Generally do not use cost adjustment only if you know the costs are rising on a group of items.

Move prices from one price level to another

• Allows you to run the global update and print price sheets and then have the prices take effect at a future time

• Allows you to set up a December price level from the retail prices at the end of December

Update prices from a Spreadsheet

• Change item numbers use this to get rid of duplicate item numbers.

• Update prices from a spreadsheet – added to give you a format for updating prices from csv file.

Print price sheets

• Allows you to print up to 4 price levels

• Select if cost should print

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