Sales-history based pricing automatically maintains customer-specific price without the need to set up contracts or matrices. Simply invoice a product and the customer-specific price/UOM is set. Optionally adjust sell prices as costs change or by triggered margin-price update.
- Automatically maintain sell prices based upon the previous sales’ profit margin
- Support sales-team driven, personalized pricing by customer
- Eliminate margin leakage and increase GM by 2% to 4%
- Improve margins by recognizing future costs and automatically adjusting prices to maintain margin using future cost
Sales History-based pricing calculates the selling price of each product based on the last sell price and cost, while preserving your profit margin. This pricing structure allows you to set up personalized pricing for each customer, while also giving you the flexibility to update these prices based on changes in product cost, rebates, and profit margins.
There are several tools that you can use to organize a Sales History-based pricing structure.
The hierarchy used to determine sales order pricing varies based upon system setup. Price Contracts, though setup on their own screen, are part of the Price Matrix. The price matrix can be set to either override historical pricing (see the chart) or vice versa where the contract/matrix price is the last to be used (also shown in the chart). It's important to note that this relates specifically to pricing and it is possible to have a Rebate Cost used for an order, even if the pricing does not come from a contract.
Each option has unique features that will allow you to set up and maintain a profitable pricing structure. For example, Contract Pricing allows you to apply rebates and set net pricing for customers, while Margin Manager Pricing will automatically update product prices, based on changes in cost, to maintain your Gross Profit Margin.
See also