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    DecEzy Knowledge Base

    Knowledge Base

    Pricing Overview

    Author admin acount on May 16, 2010 | Print | Bookmark

    Pricing Overview

    This article is intended to be a quick overview of pricing within DecEzy. For more detail on how on how to set up pricing, consulting DecEzy's help files, or detail on the theory behind DecEzy's pricing methods, consult the pricing whitepapers.

    DecEzy has a number of pricing methods, which can be broadly placed into two categories:

    • Static - A price is set at a certain level, for a given item/customer/quantity.
    • Dynamic - Rules are defined, which calculate prices based on the unit cost, quantity, and other factors.

    While it is tempting to primarily use the static methods (price breaks is a notable example), it is recommended that you use the dynamic pricing methods primarily, and only use the static methods for the exceptions. The logic behind this, is that you will generally have too many items to manage effectively using static methods.

    We recommend that you use two of the dynamic pricing methods together to achieve your pricing goals:

    • Unit Cost Markup - Applies a markup based on the unit cost of the item you are selling. (Items with a different unit cost get a different markup).
    • Sales Order Target Margins - Target margins are set up, based on the total cost of the items on a sales order. Essentially, you tell DecEzy "If the costs of all items on a sales order is $X, I expect to make Y% margin the order.".

    These recommendations are based on two assumptions:

    • Items with a higher cost receive a lower markup.
    • Sales orders with a higher total cost (spread out over different items) receive a lower markup (rewarding the customer for buying more items).

    The workflow for entering a sales order using these two methods is:

    1. Enter the item lines as appropriate. If you enter a large quantity of items with a low unit cost, the final total price may seem a little high, as the prices are based upon the cost per unit, not the quantity being sold.
    2. After entering all the item lines, run the auto adjust margin function (Sales Order>Auto Adjust Margin). This will automatically adjust the margin of each line on the sales order uniformally, ensuring that no item on the order is sold at a loss.

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    Category: Using DecEzy

    Last updated on April 29, 2011 with 1367 views