Pricing Materials Advanced

In This Topic

Advanced Combination Pricing

Materials Manager allows you to combine many of the pricing options to construct the price.

Area pricing can be used in conjunction with...

Price Table
- Use a price table for pricing any material based on its length and/or depth.
Area Rate
- Price per sqm that can be set for all appropriate materials e.g. this could correspond to your supplier's price lists.
Linear Price Rate
- Used in conjunction with the calculated linear length of material to create the cost price automatically.
Markup (%)
- A percentage markup applied to the total cost e.g. to account for cost of freight.
- Not be confused with the Markup Level Percentages in the Pricing/Markups page.
Extra price per item
- Useful if accounting for fixed prices associated with material.

In this tutorial we will price a door using area but a simpler approach would be to group the door prices because the choice of doors affects the price of the cabinet. See Pricing Door using Price Groups.

Tutorial

A combination of pricing methods can be used for doors purchased from a manufacturer in a raw state, priced using a Price Table from the supplier, and these doors are shipped to another business who hand paints the doors based on an Area Price Rate. The supplier of the painting services may also charge a fixed amount (Extra price) per door to cover their own contingencies.

For this tutorial, we will price the door on a Floor 2 Door which has a price :-

for Door uses a Price Table + an Area price rate + Extra price per door
fixed for Carcass and Benchtop materials on the Pricing > Settings page

If used, the following steps must be repeated for every Material within every Group within every Type that you wish to apply it to.

However, you do have the option of setting a default price, for materials that have a $0 value, on the Pricing > Settings page - see tutorial on Price Zero. This method is used in this tutorial for Carcass and Benchtop materials.

For more on Combined Pricing Method, see Pricing Benchtop using Pricing Tables : Tutorial 3

Step 1 - Materials Manager

First access Manager from either the Pricing > Material/Hardware page or Materials-Advanced > Manager page.

Click on the Manage button and select the relevant material and price accordingly. In this example,...

Step 2 - Select Material

On the Details page in the Materials Manager.

select the applicable door.

Door material selected in Material Manager - Click to Expand

Step 3 - Price Material

On the Pricing page...

select Use Price Table by ticking checkbox.
Select a Price Table containing the raw door prices.
- In this example, we will use the Duratech / Caprice Gloss.
- You can create a Price Table using the Manage : Price Tables button.
Enter the hand painting rate per square meter into the Area price rate field.
- In this example $10 per sqm.
Enter the fixed amount per door into the Extra price per item field.
- In this example $5.
Save changes.

Remember to Refresh - Default Material Data.

If the report does not use the current pricing for the materials, then enable the Look Up Current Pricing option on the Pricing > Settings page.

For more on the use of Price Code see Pricing Doors using Price Groups : Tutorial 3

Pricing/Markups page

Ensure you have the Doors & Drawers category ticked and any other required Categories i.e. Carcass and Benchtops.

In this tutorial, Carcass and Benchtops have a default price set on the Pricing > Settings page.

To designate the Sell price you need to set the Level Markup percentages.

Step 4 - Run Report

To see the effect of pricing, run a Quantities report.

Click to view Carcass and Benchtop prices set on the Pricing > Settings page.

The above report shows only pricing details pertaining to this tutorial.

Rounding during the calculation process can cause amounts to increase by a few cents.

To calculate Sell price set Markup Percentages per category on the Pricing > Pricing/Markups page.

Click on image to see how cost pricing was set for Benchtop and Carcass (See topic on Price Zero).

How is the Door price calculated?

The Cabinet Information shows that individual doors are 725mm x 371mm.

The left side measurement is the finished size and the right side, in brackets, is the size with edging.

Click to view Information page used to make extra pages available.

Price table, shown below, will use price of $82.70 for each door i.e. $82.70 x 2 doors = $165.40
- Calculated using price in applicable column is ≤ Depth and row is ≤ Length
  - Length 725mm which is ≤ 800mm (but > 650mm) i.e. row 800mm
  - Depth 371mm which is ≤ 450mm (but > 350mm) i.e. column 450mm
Area price is $10 per sqm i.e. 0.54sqm x $10 = $5.42
Extra price per door is $5 i.e. $5 x 2 doors = $10

This makes the total Cost price $165.40 + $5.42 + $10 = $180.82

The Sell price calculated as $180.82 plus 20% markup i.e. $180.82 + $36.16 = $216.98

Duratech/Caprice Gloss table - Click to Expand

Price Tables can have a discount applied to all the values in the corresponding table.

If you want your drawing to always use the current pricing for the materials then enable the Look Up Current Pricing option on the Pricing > Settings page as shown...

Pricing > Settings page - Click to Expand

Materials

Materials Manager and Creating Materials

Materials Refresh