Customer Special Pricing can save you Profit Points, Costly mistakes and Embarrassing errors. Once you have set your customer pricing, you can rest assure that every invoice goes out with the optimised profit and correct pricing. Pricing can be based on Product Groups, Subgroups, Qty, Start finish dates and more. Individual customers can be priced as a head office account and still have their very own special pricing overrides for those products unique to their buying patterns.
Customer Special Pricing – Overview
Peach Software has many ways to achieve the most flexible pricing for each customer or group of customers.
Notable methods include but lot limited too: Markup (% on Cost) Price Level (Discount off List) Net (Set price per product)
The various ways that these methods are applied can be attached to keys such as the Product Part, Group, Sub Group, Supplier, Category, Qty, Date Range and so on. Although there are so many systems out there with many variations there have not been many times where we have not been able to Mimic and simplify existing methods when converting other software systems to Peach Software.
Just like all accounting software Peach uses the average cost of products to calculate profit. However you will notice that there are 3 cost on each product. (Non Importers) Current Cost, Last Cost & Average Cost. (For importers the Current cost is replaced with the FOB Cost in the foreign Currency).
Your Standard purchase price from your preferred supplier. This is a seperate cost which should only change if your normal supplier (Preffered Supplier) changes your buy price on this product. This is the most stable price and normally used when creating a selling price based on cost plus. Current Cost is expressed in the software as X. If I wanted to give a customer a 50% Markup on a particular product or product Group etc I would give X50.
The Last Cost records the last price you purchased the product for regardless of the supplier and how many you already had in stock and at what price. This price fluctuates most and would only be used when creating a selling price based on cost plus for a trade client where your margins are very small as any fluctuation in cost could create a loss. Last Cost is expressed in the software as L. If I wanted to give a customer a 50% Markup on a particular product or product Group etc I would give L50.
Average cost is what is used to calculate your profit. It’s what you have paid in total for the current stock divided by the Qty. So if you Buy 10 for $10.00 and then purchase another 10 for $15.00. Now you have 20 in stock @ a total of $25.00. The average cost is now $25.00/20 = $1.25. Each time you purchase more stock, the Current Total Value is added to the new Total Value and then divided by the new Qty. Average Cost is expressed in the software as V. If I wanted to give a customer a 50% Markup on a particular product or product Group etc I would give V50.
FOB Stands for Freight On Board. This is a term used by importers. FOB is the cost of goods from overseas in the foreign currency before shipping, insurance and handling costs. There are possible variations, but this is the general understanding. This cost appears in the Goods Import Screen and used together with the exchange rate to calculated the Landed or FIS cost based on all other charges involved in the Shipping. This cost is not used to generate selling prices.
Customer Special Pricing starts with the Price Level setting. If all other rules don’t give a result then the price given relies on this Setting. IN the example below the Customer is set to Price Level C so if Acme Hardware should buy a Z9 Oil Filter they will be charged $6.05 unless there are further pricing rules for this Customers profile…
This is the Heart of a Customer special pricing. 90% of our clients would use this section for product, product groups, product subgroups, qty price breaks and date sensitive special prices to achieve a highly customised pricing solution. Line entries in the example below would mean…
line 1 Acme Hardware get Product MT001 for $1.80 all day every day.
Line 2 Acme Hardware gets all Products in Group HM and Subgroup 002 for Price C less 12%
Line 3 Acme Hardware gets all Products in Group HM regardless of Subgroup for Price C less 8% accept those in Subgroup 002 then revert to line 2
Line 4 Acme Hardware gets product Z9 for $5.00 if they buy 20pcs and the invoice to them only will show PartNo W1200
line 5 Acme Hardware gets RAGS5KG for 12.00 between 1st and 20th March 2017
line 6 Acme Hardware gets all Products in Group HM and Subgroup 001 for a 32% Markup on Standard cost
Customer Special Pricing allows each customer to have their own price settings via the Price Level or the Matrix, you can also create a Fake Customer with pricing rules which may be suitable to all customers in a particular Category, Industry or even buying group and so on. Then you can refer customer to that matrix using the Price As field in customer control. This works together with the other price rules as follows…
Invoice a Z9 to Acme Hardware – The pricing logic does the following…
a. Check the PriceAs Customers matrix to search for a result based on the part number, group or subgroup. If found use that
b. Check this Customers Matrix to search for a result based on the part number, group or subgroup. If found override point A
c. If no result found so far check Customer PriceLevel and use that
d. If Price Level is Blank use Price A
Sorry this resource has been removed from the Internet. We will keep searching for a replacement
GP% = (Sell – Cost) / Sell
MU% = (Sell – Cost) / Cost
Percentage Price Change can Save you Hours of Work
It can be used to adjust Costs, Selling Prices, Price Levels, Promo or Future Pricing in Bulk, saving you Hours of detailed work. A likely scenario for this would be where you would like to Make your Price Level for Trade Customers = Cost + 30% for Group “BRAKES” and Subgroup “PADS” from Supplier “ACME” Check out the video below…