It s OK to Make Money! How to Create Rules and Plans with Pricing Planner
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1 It s OK to Make Money! How to Create Rules and Plans with Pricing Planner Sandy Lieber Phone Trainer 2016 Epicor Software Corporation
2 Sandy Lieber Phone Trainer Over 10 years Retail experience Prior to Epicor, previously spent 5 years working for RetailerSoft, where she focused on training and support of the retail pricing tool, Margin Master Several years of hardware retailing experience Her retail experience, along with the hands on experience of Eagle, gives Sandy a unique set of abilities and knowledge that allow her to focus on providing retailers with real world perspectives. Primary training focus at Epicor is on our Planner Series products, Pricing Planner, Performance Manager, and Inventory Planner Epicor Software Corporation Eagle Online Academy 2
3 It s OK to Make Money! How to Create Rules and Plans with Pricing Planner Sandy Lieber Phone Trainer 2016 Epicor Software Corporation
4 The contents of this document are for informational purposes only and are subject to change without notice. Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of its date of publication, April The usage of any Epicor products or services is subject to Epicor s standard terms and conditions then in effect. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Epicor, the EPICOR logo, Eagle, Grow Business, Not Software, are trademarks or registered trademarks of Epicor Software Corporation in the United States, and in certain other countries and/or the EU. Copyright 2016 Epicor Software Corporation. All rights reserved Epicor Software Corporation Eagle Online Academy 4
5 Objectives Understanding Variable Pricing Concepts Factors Rule Building with Pricing Planner Saving Time Through Automation Making More Money Building a Plan with Pricing Planner Putting it All together Implementing Making it happen! 2016 Epicor Software Corporation Eagle Online Academy 5
6 All things are difficult before they are easy. - Thomas Fuller 2016 Epicor Software Corporation Eagle Online Academy 6
7 Agenda 1. What is a Variable Pricing Structure 2. Rule Building in Pricing Planner 3. Building a Pricing Plan 4. Wrap-up 2016 Epicor Software Corporation Eagle Online Academy 7
8 Variable Pricing Factors 2016 Epicor Software Corporation Eagle Online Academy 8
9 Outlining Notes for Variable Pricing Building a Pricing Structure Pricing Plan Worksheet 2016 Epicor Software Corporation Eagle Online Academy 9
10 More Outlining Margin Calculation Worksheet 2016 Epicor Software Corporation Eagle Online Academy 10
11 What is Variable Pricing? Variable pricing is an understanding of where margins and retails must be kept low to continue to have a positive price image with our customers and raising margins when possible in order to continue to make a profit Epicor Software Corporation Eagle Online Academy 11
12 Thinking about Variable Pricing, I think that my customer s level of awareness and understanding of pricing in the market is best described as: A. Aware of market pricing on all items in my store and my customer always looks up pricing for the items I carry B. Has no awareness of pricing at all C. Highly aware of market pricing on some items, general awareness on other items, and little to no awareness on most items D. None of the above Epicor Software Corporation Eagle Online Academy 12
13 The Majority Answered A Aware of market pricing on all items in my store and my customer always looks up pricing for the items I carry 2016 Epicor Software Corporation Eagle Online Academy 13
14 The Majority Answered C Highly aware of market pricing on some items, general awareness on other items and little to no awareness on most items 2016 Epicor Software Corporation Eagle Online Academy 14
15 Who is My Customer? Versus Homeowner Contractor 2016 Epicor Software Corporation Eagle Online Academy 15
16 Pricing Sensitivity 2016 Epicor Software Corporation Eagle Online Academy 16
17 Defining Sensitive Items 2016 Epicor Software Corporation Eagle Online Academy 17
18 Defining Competitive Items 2016 Epicor Software Corporation Eagle Online Academy 18
19 Defining Non-Competitive Items 2016 Epicor Software Corporation Eagle Online Academy 19
20 Defining Blind Items 2016 Epicor Software Corporation Eagle Online Academy 20
21 Sensitivity in Pricing Planner (Using Category Analysis) 2016 Epicor Software Corporation Eagle Online Academy 21
22 Sensitivity in Pricing Planner (Using Segmentation) 2016 Epicor Software Corporation Eagle Online Academy 22
23 Inventory Mix/Assortment 2016 Epicor Software Corporation Eagle Online Academy 23
24 Inventory Mix, Sensitivity & Customer Type Dominant Non-Comparable Blind/Non- Comparable -Comparable Industrial Competitive Homeowner/DIY Convenience Homeowner/DIY Niche/Convenient Low Range Pricing Mid- Level Pricing High Level Pricing Contractor Dominant Low Range Pricing Sensitive Contractor Convenience Mid- Level Pricing Non- Comparable Homeowner Industrial Contractor Dominant Convenient Niche Low Range Pricing Sensitive 2016 Epicor Software Corporation Eagle Online Academy 24
25 Competition 2016 Epicor Software Corporation Eagle Online Academy 25
26 Competition & Pricing Planner 2016 Epicor Software Corporation Eagle Online Academy 26
27 Competitive Analysis 2016 Epicor Software Corporation Eagle Online Academy 27
28 Question on Rounding: To a customer, what is the difference between the price point $1.89 and $1.99? A. Ten Cents B. No difference 2016 Epicor Software Corporation Eagle Online Academy 28
29 The Majority Answered A 2016 Epicor Software Corporation Eagle Online Academy 29
30 The Majority Answered B 2016 Epicor Software Corporation Eagle Online Academy 30
31 Price Rounding Pennies here and there turn into thousands of dollars to your bottom line 2016 Epicor Software Corporation Eagle Online Academy 31
32 Price Rounding Within Pricing Planner 2016 Epicor Software Corporation Eagle Online Academy 32
33 Price Rounding Source From Art Freedman s, Making Money is Not Illegal, Immoral or Fattening 2016 Epicor Software Corporation Eagle Online Academy 33
34 Building a Pricing Rule 2016 Epicor Software Corporation Eagle Online Academy 34
35 2016 Epicor Software Corporation Eagle Online Academy 35
36 2016 Epicor Software Corporation Eagle Online Academy 36
37 Item Set Selection 2016 Epicor Software Corporation Eagle Online Academy 37
38 Item Set 2016 Epicor Software Corporation Eagle Online Academy 38
39 Pricing Strategy 2016 Epicor Software Corporation Eagle Online Academy 39
40 Analysis 2016 Epicor Software Corporation Eagle Online Academy 40
41 Pricing Rules 2016 Epicor Software Corporation Eagle Online Academy 41
42 Understanding Pricing Planner Enter GP%, Match Competitor, etc. Pricing Strategy Item Set Pricing Strategy Pricing Rule Rule(s) Schedule Pricing Plan 2016 Epicor Software Corporation Eagle Online Academy 42
43 Example: Setup a Pricing Strategy Department 5 50% Margin 2016 Epicor Software Corporation Eagle Online Academy 43
44 Pricing Rules Step 1: Selecting the Item Set 2016 Epicor Software Corporation Eagle Online Academy 44
45 Pricing Rules Step 2: Creating a Pricing Strategy Enter GP% Match Competitor Match Catalog Match Store Enter Price Increase/Decrease 2016 Epicor Software Corporation Eagle Online Academy 45
46 Creating Pricing Strategies (continued) Set Segment Code Can be blank Effective Date Can be blank Rounding Options Other Options Allow increases or decreases? Be sure to hit Save or Save As!!!! 2016 Epicor Software Corporation Eagle Online Academy 46
47 Pricing Rules Step 3: Save As Pricing Rule 2016 Epicor Software Corporation Eagle Online Academy 47
48 Building a Pricing Plan 2016 Epicor Software Corporation Eagle Online Academy 48
49 2016 Epicor Software Corporation Eagle Online Academy 49
50 2016 Epicor Software Corporation Eagle Online Academy 50
51 Let s talk about rule order True or False: In this screen shot, we are looking at 3 rules. Two of the rules are related the rule dept 1 57% and the class 111 to 45% gp Katz rounding (Class 111) is a class within dept 1. In the order that the rules are listed, class 111 will override the dept 1 rule. A. True B. False 2016 Epicor Software Corporation Eagle Online Academy 51
52 The Majority Answered True 2016 Epicor Software Corporation Eagle Online Academy 52
53 The Majority Answered False 2016 Epicor Software Corporation Eagle Online Academy 53
54 Agenda 1. What is a Variable Pricing Structure 2. Rule Building in Pricing Planner 3. Building a Pricing Plan 4. Wrap-up 2016 Epicor Software Corporation Eagle Online Academy 54
55 Extend Your Learning with Training on Demand Content related to this topic: Using Manage Prices Pricing Planner Rules and Plans 2016 Epicor Software Corporation Eagle Online Academy 55
56 For more information on products featured in today s presentation, or to find out how Epicor Professional Services can help you grow your business, please contact your Account Manager at Epicor Software Corporation Eagle Online Academy 56
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