1. Getting Started – Price Matrix
August 2017

2. The Price Matrix
Use of Price Levels is the easiest way to accomplish maintaining your pricing strategy for your Branch. A template has been created to aid you to establish and maintain price levels via an easy to use matrix.
In this brief demonstration, I will walk through an example of using the template to get started.

3. The Basics
The Pricing Matrix for Levels 1-20 is to be used for all Price Groups and Stocking Inventory.
It is recommended to include secondary material items, such as Base, Supplies, Pad and Labor for greater visibility and ease of control of your Pricing Strategy.
Typically Price Levels 1-3 are used for “Street Pricing”. Those belonging to a National Management Company should be assigned a Level for that Management Company.
In most cases, Levels should be assigned for your largest, or most important, Management Companies so that all of the properties managed by that company are billed the same price for the same item.
For example, if Cortland is set up on level 4, then all of the properties that are managed by them will have the level 4 price for any items that are sold to the customer.
Only the Management Company is listed on the matrix. Properties managed by that company are updated with the same level in Varnet.
Pricing for a Customer does not need to exactly match every price on the Level assigned.
This is where Special Pricing comes in. If the majority of pricing matches a Level, assign that Level and create Special Pricing for the exceptions.
Special pricing (also known as a pricing exception) is a specific price, for a specific item, for a specific customer. If there is a special price set up for a customer, it will override Price Level and the Special Price will be what is used in order entry.
If you find you have more than 3-4 items for Special Pricing, review to determine if that customer should be moved to a different level.

4. The Steps Maintenance Create your Price Matrix
Determine which Management Companies are important
Identify “Street Level” Price
Verify if Price Groups are set up for your Branch in Varnet
Set up Level Pricing in Varnet
Verify Customer Accounts using the Customer Price Level List in Varnet
Delete old Special Pricing
Maintenance
Review Price Changes using the National Customer Pricing or Vendor Cost updates distributed by Branch Support
Update the Matrix
Update Varnet

5. Create your Price Matrix Step 1 – Determine which Management Companies are important
Review Management Company Report sent monthly by Branch Support to determine National and Regional Management Companies for that Branch.
Assign the Management Company to a Price Level on the Matrix (Row 1).

6. Create your Price Matrix Step 2 – Identify “Street Level” Price
Identify Street Pricing Levels by printing your Customer Pricing List (OP-3-51) from Varnet and determine which prices are used most often.
This is typically entered under Price Levels 1-3.

7. Create your Price Matrix Step 3 – Verify if Price Groups are set up for your Branch in Varnet
Print the Item Maintenance Report (IN-3-62) from Varnet – Refer to Procedure 310
If Pricing Groups do not exist, identify each style name of the products stocked in your Branch and refer to Steps 2 and 3 of Procedure 310 to create Pricing Groups.
Once Pricing has been entered into Pricing Groups, print the Price Group List (IN-3- 55). Best practice is to work on updating alphabetically.
Note: This report is converted to LF price for rolled goods.
If Price Group already exists, skip to Level Pricing.

8. Create your Price Matrix Step 4 – Set up Level Pricing in Varnet
The GM will set up levels on the Pricing Matrix (excel spreadsheet). Levels are typically assigned to management companies with the highest sales. Levels are applied to stocking items only.
Run the Special Pricing List Report (OP-3-51) in Varnet for each Management Company you have assigned to a Price Level to ensure there is no Special Pricing that shouldn’t be there.
Go into Pricing Group Maintenance (IN-3-6), enter the Pricing Group, and update the price for that Level.
Secondary material items, such as Base, Supplies, Pad, and Labor, must be updated in Item Maintenance (IN-3-1).

9. Create your Price Matrix Step 5 – Verify Customer Accounts using the Customer Price Level List in Varnet
The Customer Price Level List Report (OP-3-50) may be used to pull up all properties under the same management company to ensure they are all on the correct level.
If any properties under the management company searched are not on the corresponding level, adjust by using Customer Maintenance (AR-3-1).

10. Create your Price Matrix Step 6 – Delete old Special Pricing
Delete out all old special pricing for customers that are now on levels. Leave any exception pricing in place.

11. Maintenance Step 1 – Review Price Changes
Review Price Changes using the National Customer Pricing or Vendor Cost updates distributed by Branch Support
You will receive an update for Customer Pricing (National Accounts), or an update for Vendor Cost, which will look similar to this:

12. Maintenance Step 2 – Update the Matrix
Simply update your Price Level for that Management Company using the amount for your location.
For example, using the price changes for Mohawk Preferred Choice on the previous slide, we will update Management Companies that use that product
Cortland uses Preferred Choice and has been assigned Level 4 on the Matrix. Therefore pricing from this update has been updated on Level 4 of the Pricing Matrix tab.

13. Maintenance Step 3 – Update Varnet
Using your updated Matrix, update the Levels within Pricing Groups in Varnet
Cortland uses Preferred Choice and has been assigned Level 4 on the Matrix which was updated.
Therefore Level Prices for Pricing Group “PREFF” would be updated in Varnet.
Not all stocking items will belong to a Pricing Group. You will need to update level pricing for those items within Item Maintenance.

14. “The great dividing line between success and failure can be expressed in five words: I did not have time.” — Franklin Field
Yes, if you are not currently using Price Levels, or not using them effectively, it will take a bit of time to get set up.
Yes, if you spend this time now, it WILL save you much more time later.
Yes, there is help and guidance available.

15. Questions?
For general questions regarding Price Levels or Groups, please reach out to your Regional Operations Coordinator.