Pricing

How Pricing works in Retail 365

• When creating a new product you add the cost price of this product. We advise you to add the Net price of the product to this field i.e what price you bought the product at including discounts etc.

• You also add the Retail Price of the product - the price you will sell the product at.
• For more info on Creating a New Product

Cost Price Types

• There are three cost price types by default in Retail 365 ( these can be seen under the pricing section of product maintenance ) - Avg Purchasing Cost; Latest Cost Price; List Cost Price.

• After a product is created all of the above cost price types will be set to the cost price that was entered on creation of the product ( the Net Cost )

• Avg Purchasing Cost - The cost price worked out over time. Each time you check in an order or complete a stock transfer, this average cost price is recalculated. This average cost price is used for reporting profitability.

• Latest Cost Price - The most recently purchased price from the supplier (the delivered price in the orders). Each time the product is ordered the Latest Cost Price is updated with the new List Cost Price.
• List Cost Price - The price that you are currently paying for the product ( Net Price ). This is the price that is updated by the user in the following modules: Product Imports, Advanced Search, Product Updates.

Example of Pricing From Creation to Profitability Reporting

• We will use the example above, we have created a product called TESTING MAKE UP PRODUCT and entered 9.50 as the Cost Price ( net price we paid for product ) and a Retail Price of 19.50

• The Cost Price Types in the Pricing tab will all default to €9.50

• The product can now be ordered through the Orders module. It will display the Latest Cost price which has been updated by the List Cost Price.

• For this example we will order a quantity of 10 which will total the cost at €95.00 ( 10 x €9.50 )
• The Avg Purchasing Cost, Latest Cost Price and List Cost Price remain at €9.50.
• We will then check in the product and it will again display the Lastest Cost Price.

• The Avg Purchasing Cost, Latest Cost Price and List Cost Price remain at €9.50.

• We will now sell the product in a local store. A quantity of 3 were sold and the a quantity of 2 were sold, both at a retail price of €19.50.

• Category Sales & Profitability will show the following:

• Qty: Quantity sold
• Value: sales value including VAT ( €9.50 x quantity of 5 )
• Value ( Ex VAT): sales value excluding VAT ( €9.50 x 5 - 23% )
• VAT: The VAT is set in the Pricing tab ( standard VAT of 23% )
• Cost: The Avg Purchasing Cost ( €9.50 x quantity of 5 )
• Profit: sales value excluding VAT - Avg Purchasing Cost ( €79.27 - €47.50 )

• Profit %: Profit / Value(Ex VAT) X 100

• Note: By hovering over the report info icon, it will detail what the report contains

  

• We will now change the List Cost Price of this product as we are now purchasing this product at a reduced cost. The net cost of the product is now €8.50 so we will enter this into the List Cost Price field under the Pricing tab in Product Maintenance.

• The Avg Purchasing Cost and Latest Cost Price will remain at €9.50.
• The product can now be ordered through the Orders module. It will display the Latest Cost price which has been updated by the List Cost Price ( €8.50 ).
• For this example we will order a quantity of 10 which will total the cost at €85.00 ( 10 x €8.50 )

• Once the order is checked in the Latest Cost Price will be updated to the List Cost Price under the pricing tab in Product Maintenance (€8.50)

• Avg Purchasing Cost Price will now display €9.00 ( €8.50x10 + €9.50x10 / 2 )

• The newly updated Avg Purchasing Cost will now be used for sales when calculating profitablity in the Category Sales & Profitability report.

How to Apply a Special Offer to a Product

• Select an Offer Type, either Markdown or Special Offer

• Enter the quantity of the product you wish to apply the special offer to and the price you wish to assign the product during the Special Offer

• Enter the dates you wish to allow this Special Offer to run for, in the 'Active From' and the 'Active To' text fields. This allows you to make price changes to a product that will not actually take effect until the from date specified and will only run until the to date specified. Please note that the active from / to dates are not mandatory. You can leave either or both fields blank

• Click the button

• Once a Product export has been sent to the till, the next time you scan the product with the special offer, it’s ‘Special Price’ will appear automatically on the till