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By: Steve Moeller & Ron Stogsdill, Sr.

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1 By: Steve Moeller & Ron Stogsdill, Sr.
MENU 5 PRICING By: Steve Moeller & Ron Stogsdill, Sr.

2 GOALS Establish an efficient pricing matrix to help increase gross profit List Price Multiplier Change “Thinking” to List Less on most products

3 GOALS Mark-up from Cost (branch or direct) Fixed Price (Menu-5.3)
Limited Use – Commodities If Cost Goes Down, So Does Sell Fixed Price (Menu-5.3) Labor Intensive to Maintain (review each qtr) Lost Margin Opportunity when costs going up Use only when there is no alternative .45 equals old net catalog – 4 decimal multiplier increase does not equal 1%

4 GOALS Identify Daily, Weekly, Monthly, Quarterly, Yearly (DWMQY) pricing related tasks Establish Pricing Best Practices

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

6 Menu 5

7 Auto Update Pricing Menu

8 Price Quantity Maintenance 15. Pricing Matrix

9 Price Quantity Maintenance 15. Pricing Matrix

10 Price Quantity Maintenance 15. Pricing Matrix
DPOINT - Points to a bucket:  CPOINT - Points to a cost: 0 = Each Price  0 = Each Price 01 = First bucket                               -1 = Branch Cost 02 = Second bucket etc...                -2 = Average Cost 06 = Last bucket                               -3 = Direct Cost 23 = 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)

11 Price Quantity Maintenance 15. Pricing Matrix
DPOINT - Points to a bucket: 0 = customer each price 23 = product list price (same for all) “S”ell option – S1, S2, SA, SB “V”endor option (product master vendor) ABC is active (product detail ABC)

12 Menu-35.3 Pricing Parameter

13 Menu-35.3 Pricing Parameter
Menu – 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. 

14 To Do List Pricing Manager & lockdowns Eliminate price pointers (5.22)
Eliminate discounts (5.27) Eliminate fixed customer contracts Establish EDLP programs Quarterly LPM review Quarterly customer review

15 Daily Pricing Tasks EOD email 01-175 contracts with cost change
EOD products with cost change EOD new products transmission EOD customer with no LPM Event Notification price overrides Event Notification price hold Event Notification sold below cost JEN Price bulletins

16 Weekly/Monthly Pricing Tasks
JEN upcoming price changes 5.23 FT into folder and review, delete programs that have expired 5.35 FT into folder, review & save have company meeting and discuss pricing set goals to reduce the number of overrides

17 Quarterly/Yearly Pricing Tasks
Customer review by salesman Review customer classes Review programs Review List Price Multipliers Review all customers with programs

18 List Price Parameters Menu 35.23 – ABC Parameters
RANKING "A" (SALES.12MO) RANKING "B" (SALES.12MO) RANKING "C" (SALES.12MO) The ABC ranking re-calculates every EOM Do you want to apply these new parameters now (Y***/<enter>)?

19 List Price Multipliers
Customer ABC Report ( ) – enter ALL, ALL, ALL for all stores combined Menu Customer Activity Report – ABC, LPM, APD, etc List Price Multiplier Upload (5.20.5)

20 Questions & Answers


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