- Created by admin, last modified by AdrianC on Dec 05, 2016
https://help.myob.com/wiki/x/0Aic
ANSWER ID:9388
The Pricing Grades function in RetailManager allows you to specify default pricing for stock which differs from the RRP value of each stock item. This offers great flexibility when pricing your products and allocating discount levels to groups of customers. Pricing rules can be set at a global level, which affects all stock, and can then be overridden at a category or stock item level.
This page will step you through how to apply Set Pricing in a real world scenario. Further information can be found in your RetailManager User Guide under the Administration chapter.
Example
- Regular customers who pay retail price
- VIP customers who purchase frequently and are granted a 5% discount
- Wholesale customers who receive a 20% discount
- The computer shops own technical department who build computer systems for customers. They use the individual components in stock and are issued these components at cost price.
Assigning the appropriate pricing grade to each customer
RetailManager allows you to assign one of five specific pricing grades to customers. These are the default pricing grade, and Grade A through to Grade D.
In our scenario, the regular customers of the computer shop will be given the Default pricing grade. Because the Default pricing grade is used if none are selected, there is no need to select a pricing grade for these customers. All other customers will need to be given a unique pricing grade. The steps to do this are explained below.
- Go to the Information menu and choose Customer.
- Select a customer to be assigned a pricing grade.
- Click the drop down arrow next to Grade and select the pricing grade you want to assign to this customer. In this example the VIP customers will be Grade A, the wholesale customers will be Grade B, and the technical department will be Grade C.
- Click Apply.
- Repeat steps 2 - 4 for each customer you want to assign a pricing grade to. See our example below.
Setting the Global Pricing Grades
Having assigned the correct pricing grades to each customer, the rules that apply to these customers can now be created. These are the global rules that will result in the discounts being automatically applied at the time of sale. The steps for setting up these rules are as follows:
- Go to the Stock Management menu and choose Pricing Grades.
- If it is not already selected, click the Global button at the top of the window. This will apply the pricing rules to all stock items, rather than the category or individual level.
- Ensure the Disable all Pricing Structures (all stock sold at RRP) option at the bottom right of the window is deselected so that the pricing rules created will take effect.
- If it is not already selected, select the Def option to the left of the window. This is the default pricing grade.
- Under the Sell column, select . This way, no special pricing applies to regular customers, so that they pay normal retail prices.
- Click Add/Update to apply this rule. See our example below.
Remember that the VIP customers, who have been assigned Pricing Grade A, receive a 5% discount off RRP price. This can be achieved as follows:
- Select the A option on the left of the window. This is pricing grade A.
- Under the Sell column, select RRP-%.
- In the Amount field, enter 5.
- Click Add/Update. Sales to customers who have been assigned pricing grade A will now be charged at RRP price less 5%, as can be seen in the Rule text box appearing next to GradeA.
- Repeat steps 1 - 4 for GradeB, making the rule RRP - 20%.
- For Grade C, the rule will need to be Cost + $0. A rule of Cost by itself can not be applied, so you will need to click on Cost + $ in the Sell column, and make the amount 0.
All of the global pricing grades have now been created. If you make a sale to a customer, you will now see the appropriate price appear in the Sell column of the Sales window.
Applying category-specific pricing grades
The computer shop is happy that RetailManager will now apply the correct prices automatically to each of its customers. However, they have received an excellent purchase price on a bulk purchase of computer keyboards, and want to pass this saving on to their customers. They would like normal customers to be given a 10% discount off keyboards, and VIP customers will receive a 15% discount, rather than their standard 5% discount.
RetailManager pricing grades allow you to specify global rules for all stock items which can be overruled at the category level. The process of creating category-based pricing rules is as follows:
- Go to the Stock Management menu and choose Pricing Grades.
- Click the Department and Category button at the top of the window. This will apply the pricing rules to all stock items, rather than the category or individual level.
- Keyboards fall under the HWARE (hardware) Category, and KBRD (keyboard) Sub Category. Select the HWARE category and KBRD sub category in the top left corner of the window, as shown in the example below.
- Select the Def option and select RRP - 10% in the Sell column then click Add/Update. See our example below.
- Select the A option and select RRP - 15% in the Sell column then click Add/Update. See our example below.
The special pricing rules have now been established for computer keyboards. If a normal customer purchases a keyboard, that customer will now be charged the RRP price of the keyboard less 10%. Similarly, if a VIP Grade A customer purchases a keyboard, the price will be the normal RRP price less 15%. Note that because no special rules have been assigned to the category HWARE and subcategory KBRD, wholesale customers and computer shop staff receive the same 20% discount and cost price respectively.
Applying pricing grades specific to an individual stock item
Global pricing rules and category-specific pricing rules have now been created for the computer shop. The only item remaining is to create individual pricing rules for specific stock items that have become obsolete, and are to be sold at a heavily discounted price.
The steps required to create specific pricing rules for individual stock items is as follows:
- Go to the Information menu and choose Stock.
- Enter the barcode of each stock item that requires its own pricing rules.
- Click Pricing from the list on the left side of the Stock window.
- Select the Def option and select Cost + 5% in the Sell column, then click Add/Update.
- Select the A option (VIP customers) and select Cost + 5% in the Sell column, then click Add/Update.
- Select the B option (wholesale customers) and select Cost + 5% in the Sell column, then click Add/Update. See our example below.
The pricing rules have now been entered and will take effect at the time of sale. Because this stock item is obsolete, the price for customers has been set to cost + $5. No individual pricing rule has been specified for Grade C customers (the computer shop staff), so they will continue to receive this product at cost. All of the pricing grades which we have covered in this support note work in conjunction with each other. A global pricing rule will apply to all stock items based on the pricing grade of the customer, which can be overridden at the category or stock level. You can use global, category-specific, and individual stock pricing rules in your shop to have maximum flexibility over the prices charged to varying groups of customers.