How to Manage Item & Model Pricing

1. Configuring a Pricing Matrix
2. Configuring a Rule
3. Quick Setup
4. Advanced Formulas
5. Bulk Updates
6. Auto Calculation
7. Permissions

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This guide will start with the two major configurations you need to set up to start using our dynamic pricing system effectively: Pricing Matrix and Pricing Rule.

How to access:

 

Configuring a Pricing Matrix

A Price Matrix is a structure for defining price levels based on Cost or MSRP. These matrices form the foundation for your pricing logic and determine the pricing level assigned to a product.

Steps to Create a Pricing Matrix

• Name the Matrix: Provide a descriptive name (ex: "Standard Markup", "Heavy Equipment Pricing", "Standard 30% Margin")
• Define a Basis: Choose between Cost or MSRP as the condition on which a pricing level will match.
• Define Pricing Levels:
  • Set a min/max range
  • For each level, assign a price formula
• Save: The saved Price Matrix will appear on the left along with other saved Price Matrices.

 

You can add as many levels as need. At least one is required to save the Price Matrix.

The first line of this example reads "When an item's cost is between $0 and $100, set its list price at a 50% markup over cost.

 

We recommend setting up price levels to cover the full range of min to max (the first level starting at 0 and the last level ending at max, with each level's starting value equalling the previous level's max value). While creating gaps are possible, it is not recommended as it may result in unwanted list price calculations. If gaps do exist, any values falling within the gaps will calculate against the Vendor's Default Markup as configured on Vendor Dashboard.

 

Configuring Rules

Rules are the conditions that determine which Pricing Matrix applies to a product. By setting up Rules, you specify the circumstances under which a particular Matrix is used.

For Items, Rules can be based on:

• Vendor
• Department
• Division

For Models, Rules can be configured using:

• Vendor
• Primary Class
• Secondary Class

Each Rule also includes:

• Priority: Rank the importance of Rules when a product matches multiple criteria. 0 is the highest rank.
• Matrix: Assign a Pricing Matrix to apply to the Rule’s products.

Item and Model configurations can be set as:

• Exact Selection: The Rule will only match on an exact selection (example: Vendor = John Deere)
• Any: When matching on a Rule, values set to "Any" will be ignored.
• Unset: A Rule matches on an "Unset" value when it is not configured to any specific value.

In this example, the Rule is configured to match on Bobcat models that do not have a Primary Class configured.

A Bobcat model with Primary Class of "Skid Steer" would not match this example Rule. However, if the Rule was configured for Primary Class "any", the Rule would match.

Example 2: Apply a standard Pricing Matrix to Parts of a specific division, regardless of Vendor:

• Priority: 0
• Vendor: "Any"
• Division: "Tires"
• Department: "Any"
• Matrix: "My Standard Parts Matrix"

 

Rule Priority

An Item or Model can potentially match against multiple Rules. Priority is a number used to rank which Rule to prefer in this case. 0 is the highest priority.

We recommend configuring a default "catch all" rule. To do this, simply configure a new Rule with all values set to "Any", with its Priority set to be below all of your other Rules, as shown here:

 

Quick Setup

Let's create a basic pricing structure. In this example, we will configure a single pricing formula for all items under one Vendor.

• Create a new Pricing Matrix. Leave min and max empty and enter formula msrp * 1.03
• Create a Rule, set a Vendor, set the other values to "Any", then assign it to the Price Matrix you just created.

That's it! You have configured a Pricing Rule that will now price all items for this Vendor at 3% over MSRP.

 

Advanced Formulas

The examples so far have only shown formulas to mark up cost or list. Formulas can use many common mathematical operations and helper "functions" to create more complex pricing formulas.

Variables - phrases that represent key price data on an item or model. Allowed variables:

• msrp
• cost
• vendorMarkup (Vendor Default Markup as configured on Vendor Dashboard)
• distributorMsrp - For multi-currency use only
• distributorCost - For multi-currency use only

Mathematical Operations:

• +
• -
• *
• /
• ( )
• <
• >

Functions:

• GREATEST
• FLOOR
• CEIL
• IF

 

Example Formulas:

cost / (1 - (18 / 100))
Sets the list price to achieve 18% margin.

(floor(cost * 1.75) + 0.99)
Calculates cost times 1.75, then rounds it down, then adds 0.99 -- this ensures the calculated list price will end in .99

if(cost < msrp, msrp, cost * 1.25)
Sets list price to msrp if the cost is less than msrp. otherwise, set list price to cost times 1.25

greatest(msrp * vendorMarkup, cost * 1.2)
Sets the list price to the higher of these two calculations
- msrp times vendor markup
- cost times 1.2

 

Auto Calculation

When enabled, list prices will calculate as you are adjusting costs.

 

Enable Auto Calc by toggling the switch at the top of each Pricing editor page, as shown here:

 

With Auto Calc enabled on Models, the following actions will automatically calculate the List Price:

• Creating a new Model
• Updating a Model's Cost, MSRP, Vendor, Primary Class, or Secondary Class
• Adjusting Machine costs or allocated fees on a draft Machine Receiving Voucher

With Auto Calc enabled on Items, List Price is automatically calculated when:

• Updating an Item's Cost, MSRP, Vendor, Department, or Division on Item Dashboard
• Creating an Item on Point of Sale via Quick Add Item
• Adusting cost or msrp on Item Receiving Voucher

 

Bulk Updates

Bulk Updates allow you to update prices across an entire set of Items or Models. This is commonly used for recalculating list price when making changes to a Rule or Matrix. 

This will attempt to update all Models or Items that match Pricing Rules associated to the updated Matrix. Use the "Update Models" or "Update Items" buttons to preview affected products before finalizing changes.

Note: There are max limits of Items or Models that can be updated per Bulk Update. If you require assistance with a larger set of price updates, contact a Consultant or submit a Support Ticket.

 

Permissions

Admins must enable permissions for their Users; this will allow them to:

• Access Pricing Matrix configuration pages
• Enable / Disable Auto-Calc functionality
• Add / Edit / Delete Pricing Rules
• Add / Edit / Delete Pricing Matrices

The permission can be found in Flyntlok Access Controls, under the "Inventory" section: