MENU 5MENU 5 PRICING PRICING

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

MENU 5 PRICINGMENU 5 PRICING

Increase gross profit and establish an Increase gross profit and establish an efficient pricing matrix. efficient pricing matrix.

List Price and maintaining multipliers.List Price and maintaining multipliers. Menu 5 has a new look that will enable Menu 5 has a new look that will enable

workflow to be user friendly.workflow to be user friendly. Automatic Updates of Contract Pricing. Automatic Updates of Contract Pricing.  Q&A session with Database Programmer Q&A session with Database Programmer

and a Johnstone store pricing expert.and a Johnstone store pricing expert.

List Price MatrixList Price Matrix

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

productsproducts 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 (Old Menu-5.2)Fixed Price (Old Menu-5.2)– Labor Intensive to Maintain (review each qtr)Labor Intensive to Maintain (review each qtr)– Lost Margin Opportunity when costs going upLost Margin Opportunity when costs going up– Use only when there is no alternativeUse only when there is no alternative

Programs & ContractsPrograms & Contracts

Define different terminologyDefine different terminology Move from Contracts to ProgramsMove from Contracts to Programs Stock status “P” optionStock status “P” option Stock status “C” optionStock status “C” option HOT-1 HOT-2 KEY spreadsheets – HOT-1 HOT-2 KEY spreadsheets –

view of Customer Programsview of Customer Programs Daily reviews – EOD reports & JENDaily reviews – EOD reports & JEN

List Price OptionsList Price Options

Product master maintenance Product master maintenance (12.3.2.2) – change each price – auto (12.3.2.2) – change each price – auto change the list price immediately change the list price immediately without waiting for EOD to calculatewithout waiting for EOD to calculate

End-of-day program to refresh List End-of-day program to refresh List Price on Non-catalog items (auto Price on Non-catalog items (auto multiply Each/Qty Prices by 2.2223)multiply Each/Qty Prices by 2.2223)

List Price MultipliersList Price Multipliers

Customer ABC Ranking Parameters Customer ABC Ranking Parameters (35.23) – automatically runs at EOM(35.23) – automatically runs at EOM

Customer ABC Report (12.2.40)Customer ABC Report (12.2.40) List Price Multiplier Upload (12.2.42) List Price Multiplier Upload (12.2.42)

from Excel Spreadsheet from Excel Spreadsheet Column A = A.CUST.NO Column A = A.CUST.NO Column B = LPM (ie .4750)Column B = LPM (ie .4750)

Old Menu-5 PricingOld Menu-5 Pricing

New Menu 5New Menu 5

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix (old 5.33)15. Pricing Matrix (old 5.33)

Product Master Maint. field (#21-Menu 5.33) - Enter a ‘Y’ in this field to use the pricing from Menu 5.33 (ALL customer) in all cases, even if it’s higher than the each price. Also, the flyer pricing will be blocked, and you will NOT have to block the corp update of this product (Menu-12.3.2.2.9, field 4). 

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix (old 5.33)15. Pricing Matrix (old 5.33)

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 Matrix (old 5.33)15. Pricing Matrix (old 5.33)

• Individual contracts entered in 5.2 – if finds something uses this price, if not moves on to …• Program contracts entered in 5.2 – if finds somethinguses this price, if not moves on to …• Searches all of 5.33 to find the lowest price in any bucket and uses that scenario, then compares this price to the each price & lot pricing and uses the lowest price

• Any customer specific pricing setup in 5.33 (even for customer ALL) will always override program pricing, even if that program happens to be lower than the customer specific pricing.   

• Any Product Specific Pricing setup in 5.33 will always override vendor/product class/product type/category pricing even if that price happens to be lower then the product specific pricing.

Hierarchy for Pricing Hierarchy for Pricing

Hierarchy for PricingHierarchy for Pricing

Flyer PriceFlyer Price Each PriceEach Price List PriceList Price Quantity Break or Lot PricingQuantity Break or Lot Pricing Discount PriceDiscount Price Contract or Program PriceContract or Program Price Price MatrixPrice Matrix

Price Quantity MaintenancePrice Quantity Maintenance15. Pricing Matrix (old 5.33)15. Pricing Matrix (old 5.33)

New updates:New updates: DPOINT - Points to a bucket: DPOINT - Points to a bucket:

Add price pointer Add price pointer 2323, (ie, discount of 55.00 , (ie, discount of 55.00 percent equals .45 multiplier)percent equals .45 multiplier)

““S”ell option – S1, S2, SA, SBS”ell option – S1, S2, SA, SB ““V”endor option now uses Product Master vendorV”endor option now uses Product Master vendor ABC is now activeABC is now active

U2007.1 changes:U2007.1 changes: Effective/expiration dates and print in 5.21Effective/expiration dates and print in 5.21 Select Vendor/Product Class combinationSelect Vendor/Product Class combination

Price Quantity MaintenancePrice Quantity Maintenance35. Matrix Listing (old 5.24)35. Matrix Listing (old 5.24)

Pricing Matrix Listing

Column Options:– 1. Each Column– 2. Bucket 1 Column– 3. Bucket 2 Column– 4. Bucket A Column– 5. Bucket B Column– 6. All Columns

Selection Options– 1. Select for Specific Vendors– 2. Select for Specific Product Classes– 3. ALL records (Vendors, Classes, Customers)– 4. Select for Specific Customers– 5. Select for Specific Products– 6. Select for Specific Product Types– 7. Select for Specific Product Categories

Specific Field Selection– 1. DPOINT (field #2) only– 2. CPOINT (field #4) only– 3. All fields

Auto Update Pricing MenuAuto Update Pricing Menu

Pricing Menu – Price BooksPricing Menu – Price Books

Auto Updates of Contract PricesAuto Updates of Contract Prices

Questions & AnswersQuestions & Answers

0

50

100

1stQtr

3rdQtr

East

West

North

??????

CONTRACTS LIST PRICING MATRIX