Price Rule Engine

[ja...@productive1.com]

I noticed that the pricing engine will calculate off a percent off of
list, default, Average costs, and margin but it is always using the List
price as the base price so an example would be Price = Price *(20% of
Average costs)

What if you wanted all of your pricing to be based off of average costs.
 So I want 30% margin or 130% of my costs.  So everything is based of
average costs and list is not in the equation.

Any insight on how to accomplish?

Thanks,

James

Re: Price Rule Engine

[Arthur Marquez <ar...@gmail.com>]

James,
I'm sure others can help you address this.
However, having done a lot of pricing scenarios, I've discovered some
misunderstanding that often occurs when addressing MARGIN, vs MARK-UP.

30% margin is accomplished by taking COST (whether average, or actual), and
using 1,429 as the multiplier.

Hence, 130% of cost, would achieve only 23% margin, which would *not* reach
your objective if a 30% margin.

I've included a chart to help illustrate this example.

I hope you find this helpful.

Arthur


*Arthur Marquez*

*1-701-872-4471 : Office*
*1-818-919-5452 : Mobile*

*Farmers Union Oil Company of Beach ND*
*Farmers Union Propane, C3H8*
*90 NE 1st St.*
*Beach ND 58621*


*http://www.cenexofbeach.com/ <http://www.cenexofbeach.com/>*



On Wed, Apr 4, 2018 at 9:33 AM, <ja...@productive1.com> wrote:

>
> I noticed that the pricing engine will calculate off a percent off of
> list, default, Average costs, and margin but it is always using the List
> price as the base price so an example would be Price = Price *(20% of
> Average costs)
>
> What if you wanted all of your pricing to be based off of average costs.
>  So I want 30% margin or 130% of my costs.  So everything is based of
> average costs and list is not in the equation.
>
> Any insight on how to accomplish?
>
> Thanks,
>
> James
>

Re: Price Rule Engine

[Arthur Marquez <ar...@gmail.com>]

Cost (or average cost) x (1.30) = 23% GM (Margin)

30% margin would be (*cost*) x (*1.429*)




*Arthur Marquez*

*1-701-872-4471 : Office*
*1-818-919-5452 : Mobile*

*Farmers Union Oil Company of Beach ND*
*Farmers Union Propane, C3H8*
*90 NE 1st St.*
*Beach ND 58621*


*http://www.cenexofbeach.com/ <http://www.cenexofbeach.com/>*



On Wed, Apr 4, 2018 at 9:33 AM, <ja...@productive1.com> wrote:

>
> I noticed that the pricing engine will calculate off a percent off of
> list, default, Average costs, and margin but it is always using the List
> price as the base price so an example would be Price = Price *(20% of
> Average costs)
>
> What if you wanted all of your pricing to be based off of average costs.
>  So I want 30% margin or 130% of my costs.  So everything is based of
> average costs and list is not in the equation.
>
> Any insight on how to accomplish?
>
> Thanks,
>
> James
>