Pricing System

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Pricing System

The AwardPro mark-up system provides a very flexible platform for setting prices based on mark up.

1. Each product in your system must be assigned to a particular product type such as Glass Trophies, Medals and Plaques etc.

2. These product types have a mark-up value applied to them which is reflected in each of its products. So products are told what mark up to be by its product type.

3. You can override the default mark-up of any product so you have full flexible control over prices.

AwardPro comes with all products pre-installed and we have set nominal mark-up values which it is up to you to adjust to suit your business.

1. All sports trophies are initially set up at the suppliers recommended retail price

2. All other awards like corporate style awards such as Acrylic or glass trophies are set up at a nominal value.

3. Your job is to re-set prices in the Mark Up centre in System Set Up to your business pricing.

You adjust product Mark Ups at the Mark UP Centre found in the System Set Up Module.

2. If you use recommended retail pricing then you must not adjust the mark up for General Trophies. Medals or Perpetuals at the mark Up Centre as this will ruin your recommended retail setting.

When you import product lists you can import recommended retail prices (or any determined price) or import no price and let the Mark Up system determine the price.

2. If you do not add any price to the import list then the product gets imported and the prices get set based on whatever the products product type mark-up is

3. If you include a price in the import file the system will ignore the Product Type mark-up setting and set the price based on the imported price.

When you add a product to a sales quote or order the system looks up the price based on the mark up of the goods and the quantity discount setting.

2. This may be a default product type price or it may be a recommended retail price depending on how you have set prices.

3. The price can also be affected by any product type setting of quantity discounts. Initially there are no quantity break settings but you can set these. Let’s worry about that later.

4. You can override the looked up price at the sales screen and manually set the price for that job if you wish.

Process Charges (engraving etc.) can be built into a products break down and if this is the case these charges are added to the sell price after mark-up has taken effect.

1. If you add a process charge to a products breakdown (bill of materials) then this is added to the sell price after the mark-up has been added.

3. Process charges have not been factored in to any initial pre-installed products but you can easily set this up.

· Products are marked up based on product types but can be individually changed at the product breakdown.

· You can import recommended retail price which will override a system mark-up price.

· The Mark Up Centre is where you make universal and group mark-up adjustments.

Some people apply a number factor multiple to reach their retail price such as cost x 2.5

If you use the formula cost x number factor (cost x 2.5) then you will need to think a little differently to get the same outcome.

If you use this factoring style then in AwardPro 2.5 = 150% Mark Up. Let me explain:

So remember if you use the X multiple factor, in AwardPro it uses cost PLUS mark Up factor.

The Industry suppliers use the same system as AwardPro. They tell us that the catalogues have a mark-up of say 135% don't they. 135% in a multiple factor is x 2.35.

GST is also applied at the end of the mark up factoring so all above examples gives you the sell price before gst. This is standard accounting practice.

Products are made up of components and can also have processes such as sand blasting built into them. The products “breakdown” or “bill of materials” is found in the module Products>Product Editor.

1. Components are added to the product and the single unit cost price is the value applied. AwardPro ignores quantity buy prices from your suppliers at the product costing point.

2. Each component added to a product is tallied up to arrive at the products total material cost

3. The products mark-up is added to the component cost to arrive at a sell price before GST

4. If any process charges are added to the products process list these prices are added to the marked up price.

5. The system will automatically round up to the nearest .05c for initial product sell prices.

6. The products final price can be manually over-ridden to any price you want to set.

AwardPro Rounds Product Prices up to the nearest .0c or .05 cents. So if a mark-up setting is calling for $13.51 the price will be rounded to $13.55 or a price of 13.66 will be rounded to $13.70.

This rounding is done at the product level – The Product Editor. So when you add a product to a sales order the price will reflect the rounded price of the product.

However this is where it ends. Any changes to the products bill of materials through modify product or any discount applied will cease the rounding factor and the product will price out based on the mark up of the product.

Also, when adding a product to a sales screen you can over-ride any price and set any price you wish.

So the original product lands on the sales screen rounded but if you change the components then rounding id removed. This is done because we cannot continually control rounding at every point. Just like MYOB and other accounting programs AwardPro has an initial rounding but modification removes rounding.

You can also sell just components if you wish. Let’s say somebody just wants to buy a figurine or a blank plaque. You can add a component directly to a sales screen. But ofcourse AwardPro wants to know what you want to mark it up at. So components have their own mark-up factoring which can be adjusted easily to suit you.

3. You can set different mark ups for different components at the Component type screen in system set up.

When you are first getting to know AwardPro don’t worry too much about this components section as you will mostly be selling products.

These two features do not affect any of the above logic however they do effect the price for costing purposes of a component so they are mentioned in this document.

The exchange rate system if used will change the cost price of a component so if an affected component is added to a product the components price will be the price based on the exchange rate set for that component.

The Increase Component Cost BY % feature also affects a components price for costing purposes and like the exchange rate feature the component cost reflects this features influence.

Neither of these features are activated in a new system and so have no effect until you action them.