The Pricing Module is used (for the most part) to set customer discounts from list price or markup over cost.
First enter the appropriate discounts by Pricing Category (enter a %). These discounts will be applied on a line-item basis so that the sell pricing for all products within a Pricing Category will be set at MSRP (manufacturer’s suggested retail price, sometimes referred to as “list price”) less specified discount.
For companies that have set up one or more Pricing Categories using “cost” as the basis for calculating sell pricing, enter the markup to apply over cost to calculate sell pricing.
After setting the discounts/markups that will be applied against the parts in each Pricing Category, enter the desired System Discount that will be applied as a lump-sum discount based on a percentage of the MSRP for the entire quotation.
If the company generates schedules of supported parts (for support plans, etc.), users can change the parts within each Pricing Category appear on that schedule by changing the Y/N drop-downs that appear out to the right in the “Support” column.
Use Goal Seek to set sell pricing based on the margin, markup, discount or sell price that is being targeting. Via the Goal Seek menu:
Goal seek by pricing category or system discount – This is a “top-down” approach that determines the discount or markup to apply at the pricing category or system discount level so that line item sell pricing is calculated to achieve the desired target.
Goal seek by line item – This is a “bottom-up” approach that determines sell pricing line item by line item to achieve a desired target for EACH line item. With this approach, the line item pricing calculations that apply discounts/markups set at the pricing category level are overwritten with hard-coded sell price VALUES.
Reset line item pricing to default – Restores the pricing calculations (that apply discounts/markups set at the pricing category level) that were overwritten with hard-coded sell price values that were set via the Goal seek by line item function.
Goal Seek by Pricing Category or System Discount – to calculate the lump-sum System Discount based on the total price, margin or markup that you are targeting. Use this function to calculate the discount or markup based on the margin, sell price, markup or discount to achieve for a pricing category.
To do so:
If all pricing categories are list-based (i.e., sell pricing is based on list price less a discount), one can set line-item equipment sell pricing for a particular job at a 1.5 markup (i.e., cost times 1.5) by clicking “Goal Seek by pricing category or system discount”, then “Goal seek markup”, then entering “1.5” in the “Enter target markup” box, then checking “Apply target to EACH equipment pricing category”, then clicking OK. Users can also apply the target to SELECTED pricing categories by highlighting column C for one or more pricing categories, using the Control or Shift keys to select multiple items.
Goal Seek by Line Item – Use to calculate sell pricing line item by line item to achieve a desired target for EACH line item. With this approach, the line item pricing calculations that apply discounts/markups set at the pricing category level are overwritten with hard-coded sell price VALUES that achieve the desired goal seek target for each line item.
Users can set line item pricing to achieve a 30% margin for all line items, rather than just at the category or project level.
To goal seek by line item:
SalesDoc Architect will then set the unit sell price VALUE for (all or selected) line items with an unprotected unit sell price cell that belong to a pricing category that is adjustable (i.e., the user can adjust the discount or markup for that pricing category).
When choosing Apply to selected discountable parts, select multiple line items by holding the Control or Shift keys while clicking on the rows (any single cell in columns A through H) for the multiple items to select.
Once users goal seek by line item, sell pricing for the affected line items will no longer be calculated based on a discount or markup set at the pricing category level. However, use Reset line item pricing to default to restore the line item unit sell pricing calculations so that they’re based on discounts or markups set at the pricing category level.
Reset Line Item Pricing to Default – restores the pricing calculations (that apply discounts/markups set at the pricing category level) that were overwritten with hard-coded sell price values that were set via the “Goal seek by line item” function.
Vendor Discount Categories
The Pricing Module also contains a section that details the discounts that the company receives from the vendor(s) for determining the cost of each item purchased from the vendor(s).
In many cases, unless users are using special pricing — such as selling to the government — or users need to enter one-time additional vendor discounts, users won’t need to adjust this section at all.
Each vendor discount category uses a different basis to calculate the cost of an item to users’ company.
A part might have an end-user list price (i.e., MSRP) of $100 and a “VAR List” of $50. If the reseller buys products from the vendor at 10% off the VAR List price, then the cost to the reseller is $50 – (10% x $50) = $45.
A vendor discount category does not need to be set up for cost-based costing; the main purpose of setting up a cost-based vendor discount category is to apply a default markup to end-user list price for items imported into the Write-In Module.
Enter additional vendor discounts under the “Adj” (adjustment) column on the right-hand side of the vendor discount section. The entered amount will be added to the default discount that the SalesDoc Architect administrator has entered in the SalesDoc Architect database. The example below shows four vendor discount categories against which the user can add additional vendor discounts.
Some vendor discount categories may also have sub-categories associated with them. Sub-categories are used when parts fall under one general category against which multiple discounts might apply, usually based on the type of customer being sold to.
In the example, above, one of three sub-categories (WPP, GEM or NATL) can be applied against the “Nortel” vendor discount category. Depending on the sub-category selected, a different discount will be applied against all parts associated with the “Nortel” vendor discount category.
DID YOU KNOW…
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