MENU 5MENU 5 PRICING PRICING

By: Steve Moeller & Ron Stogsdill, Sr.By: Steve Moeller & Ron Stogsdill, Sr.

GOALSGOALS

Establish an efficient pricing Establish an efficient pricing matrix to help increase gross matrix to help increase gross profitprofit

List Price MultiplierList Price Multiplier– Change “Thinking” to List Less Change “Thinking” to List Less

on most productson most products

GOALSGOALS

Mark-up from Cost Mark-up from Cost (branch or direct)(branch or direct)– Limited Use – CommoditiesLimited Use – Commodities– If Cost Goes Down, So Does SellIf Cost Goes Down, So Does Sell

Fixed Price (Menu-5.3)Fixed Price (Menu-5.3)– Labor Intensive to Maintain (review each Labor Intensive to Maintain (review each

qtr)qtr)– Lost Margin Opportunity when costs Lost Margin Opportunity when costs

going upgoing up– Use only when there is no alternativeUse only when there is no alternative

GOALSGOALS

Identify Daily, Weekly, Monthly, Identify Daily, Weekly, Monthly, Quarterly, Yearly (DWMQY) Quarterly, Yearly (DWMQY) pricing related taskspricing related tasks

Establish Pricing Best PracticesEstablish Pricing Best Practices

Parameters & TerminologyParameters & Terminology

Contracts vs. ProgramsContracts vs. ProgramsStock status “P” & “C” Stock status “P” & “C” EDLP, {vend}-1, {vend}-2EDLP, {vend}-1, {vend}-2List Price Multiplier (LPM)List Price Multiplier (LPM)Matrix (5.15)Matrix (5.15)

Menu 5Menu 5

Auto Update Pricing MenuAuto Update Pricing Menu

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix 15. Pricing Matrix

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix 15. Pricing Matrix

DPOINT - Points to a bucket:  CPOINT - Points to a cost: 0 = Each Price  0 = Each Price01 = First bucket                               -1 = Branch Cost02 = Second bucket etc...                -2 = Average Cost06 = Last bucket                               -3 = Direct Cost23 = LIST PRICE

If a matrix price is used, a code will display in the lower left hand corner as follows: 

CP – Customer, Product    PP – Program, Product     SP - Cust.Class, Product CG – Customer, Category  PG – Program, Category  SG - Cust.Class, Category CC – Customer, Class       PC – Program, Class        SC - Cust.Class, Prod.Class CT – Customer, Type        PT – Program, Type         ST - Cust.Class, Prod.Type CV – Customer, Vendor     PV – Program, Vendor     SV - Cust.Class, Vendor

Note: Program name will also display (i.e. PP*CON-1)

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix15. Pricing Matrix

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix 15. Pricing Matrix

DPOINT - Points to a bucket: DPOINT - Points to a bucket:

0 = customer each price0 = customer each price

23 = product list price (same for all)23 = product list price (same for all) ““S”ell option – S1, S2, SA, SBS”ell option – S1, S2, SA, SB ““V”endor option (product master V”endor option (product master

vendor)vendor) ABC is active (product detail ABC)ABC is active (product detail ABC)

Menu-35.3 Pricing ParameterMenu-35.3 Pricing Parameter

Menu-35.3 Pricing ParameterMenu-35.3 Pricing Parameter

Menu 35.3.7 – PM.21.Price Matrix Enter a ‘Y’ in this field to use the pricing from Menu 5.15 in all cases for all products, even if it’s higher than the each price. 

To Do ListTo Do List

Pricing Manager & lockdownsPricing Manager & lockdowns Eliminate price pointers (5.22)Eliminate price pointers (5.22) Eliminate discounts (5.27)Eliminate discounts (5.27) Eliminate fixed customer contractsEliminate fixed customer contracts Establish EDLP programsEstablish EDLP programs Quarterly LPM reviewQuarterly LPM review Quarterly customer reviewQuarterly customer review

Daily Pricing TasksDaily Pricing Tasks EOD email 01-175 contracts with cost changeEOD email 01-175 contracts with cost change EOD email 01-181 products with cost changeEOD email 01-181 products with cost change EOD email 01-125 new products transmissionEOD email 01-125 new products transmission EOD email 01-155 customer with no LPMEOD email 01-155 customer with no LPM Event Notification 35.19.4 price overridesEvent Notification 35.19.4 price overrides Event Notification 35.19.2 price holdEvent Notification 35.19.2 price hold Event Notification 35.19.3 sold below costEvent Notification 35.19.3 sold below cost JEN Price bulletinsJEN Price bulletins

Weekly/Monthly Pricing TasksWeekly/Monthly Pricing Tasks

JEN upcoming price changesJEN upcoming price changes 5.23 FT into folder and review, 5.23 FT into folder and review,

delete programs that have expireddelete programs that have expired 5.35 FT into folder, review & save5.35 FT into folder, review & save have company meeting and discuss have company meeting and discuss

pricingpricing set goals to reduce the number of set goals to reduce the number of

overridesoverrides

Quarterly/Yearly Pricing TasksQuarterly/Yearly Pricing Tasks

Customer review by salesmanCustomer review by salesman Review customer classesReview customer classes Review programsReview programs Review List Price MultipliersReview List Price Multipliers Review all customers with programsReview all customers with programs

List Price ParametersList Price Parameters

Menu 35.23 – ABC ParametersMenu 35.23 – ABC Parameters

RANKING "A" (SALES.12MO) 30000.00RANKING "A" (SALES.12MO) 30000.00RANKING "B" (SALES.12MO) 12000.00RANKING "B" (SALES.12MO) 12000.00RANKING "C" (SALES.12MO) 6000.00RANKING "C" (SALES.12MO) 6000.00

The ABC ranking re-calculates every EOMThe ABC ranking re-calculates every EOM

Do you want to apply these new parameters Do you want to apply these new parameters now (Y***/<enter>)?now (Y***/<enter>)?

List Price MultipliersList Price Multipliers Customer ABC Report (12.2.40) – Customer ABC Report (12.2.40) –

enter ALL, ALL, ALL for all stores enter ALL, ALL, ALL for all stores combinedcombined

Menu-11.12. Customer Activity Report Menu-11.12. Customer Activity Report – ABC, LPM, APD, etc– ABC, LPM, APD, etc

List Price Multiplier Upload (5.20.5) List Price Multiplier Upload (5.20.5)

Questions & AnswersQuestions & Answers

0

50

100

1stQtr

3rdQtr

East

West

North

??????

CONTRACTS LIST PRICING MATRIX