ESTABLISHING YOUR PRICE STRUCTURE STEPS SEQUENCE

Transcription

1 All-In-One Business Solutions for the Automotive Aftermarket JMS Price Structure The JMS price structure includes many sections such as: Basic price structure for the products (Inventory, sub lines) Customer s price (Accounts receivables, Customers, Search for a specific customer, double click on its file, click on the invoice tab, see discount formula ) Special prices (Pricing, special prices) Volume discounts (Pricing, volume discount) House promotions (Pricing, Sales promotions) Uni Select sales promotions (Pricing, sales promotions, check off Show flyer promotions, click on refresh) ESTABLISHING YOUR PRICE STRUCTURE STEPS SEQUENCE To begin with, you must have a line code. You will be able to associate the line code to a sub line, even tough, you may have more than one sub line. The line code represents a supplier in JMS. 1

2 ESTABLISHING YOUR PRICE STRUCTURE STEPS SEQUENCE Line code The information squared in green color is very important within the line code window: $List Change will update the products files when a price change is performed Auto. Product Creation important to have this box checked off as when creating an invoice or receiving a purchase order, the system will ask if you wish to create the products. $List it is crucial to indicate which price list the system will use when invoicing or ordering parts $List - line code it is crucial to indicate which line code in the price list will be utilized 2

3 ESTABLISHING YOUR PRICE STRUCTURE STEPS SEQUENCE Sub lines Core -> Fees this indicates to JMS to move the amount in the core column to the fees. This applies to products that have environment fees. Then, you will have the sub lines; you may have one or more. JMS utilizes the sub lines in three different ways: To establish the products in inventory, basic prices (product file is existing within JMS) To establish the prices when you sell external parts (on the supplier s price list or not, never were on inventory in your store) When performing a price change Sub line formulas First, you have to establish the sub line formulas in order to create your price structure within JMS. The Uni Select s members can follow the same sub line structure as Uni Select as it gets easier to modify the discount prices when Uni Select does allow discounts. Establish sub lines formulas for a line code Here is the legend of JMS price structure: 3

4 Sub lines formulas Here are some examples: 1. If you wish your cost price to represent the supplier cost price from the price list + 12%, you will write in the sub line formula: Cost Price SCP*1.12 (cost price check box must be checked off) 2. If you wish your dealer price to be the dealer price from the price list $, you will write in the sub line formula: Dealer price DP+5 (dealer price check box must be checked off) 3. If you wish the price list to be the price list from the price list (-) the jobber price $, you will write in the sub line formula: LP-JP+10 (list price check box must be checked off) There are three different ways to establish the sub line formulas. Some jobbers will wish to use the suppliers suggested prices. In this case, the sub line formulas will reflect this: 4

5 Sub lines formulas Another way is to establish the price structure basing it upon your cost price; cost plus we call it. When establishing your price structure this way, when you type in the cost price in the invoice screen, the selling price will be indicated by the system as it knows the cost price. Here is an example: The additional fees for Uni Select (admin, freight, warehouse) is an example. It is not included in the other prices. That is why the above example shows the.19% in all the selling prices except the list price. Other jobbers prefer to work with a markup. The markup is easier to remember as if you are aiming a 30% profit, you will divide your cost by 70%: SCP/.70. When you are multiplying your factors in JMS, to obtain a true 30%, you will have to multiply your cost price by 1.43 which is not as easy to remember. When using the markup formula, here is an example: 5

6 Sub lines formulas The sub line formulas will be used to establish the products basic prices; when using a supplier s price list. Once your sub line formulas established, you can proceed to test them before massively changing the prices. These tests will help you ensure that your prices are as you want them to be. It is recommended for the Uni Select s members to have the same sub line structure as Uni Select has. This is simpler to manage when Uni Select gives discount to revise your prices. Here is an example that will help you determine in a fast fashion the formulas to write within JMS: Cost Price ($) Aimed Percentage Gross Profit Factor to use for the aimed gross profit Selling price Selling price divided by the cost price The multiplying factor to use How to write your sub line formula (A = the price you wish to base the formula upon, such JP, SCP etc.) Markup factor (dividing within the sub line formula) $ 1.11 $ 0.11 A*1.11 A/ $ 1.76 $ 0.18 A*1.18 A/ $ 2.50 $ 0.25 A*1.25 A/ $ 3.33 $ 0.33 A*1.33 A/ $ 4.29 $ 0.43 A*1.43 A/ $ 5.38 $ 0.54 A*1.54 A/ $ 6.67 $ 0.67 A*1.67 A/0.60 6

7 Testing your changes in your sub lines formulas To test your sub line formulas before doing a massive price change, you take a product that is associated to a price list. Therefore in the product file, you will find this button: With this button, when you access the price s tab, the F4 option is shown and allows you to see the results of the sub line formulas. You click on the triangle to modify, click on F4 on your keyboard, then you will see the new prices shown at the top of the screen. You will be able to compare them with the actual prices to confirm that the changes are the proper ones. The F4 option allows you to see the prices with the sub line formulas or with the supplier s prices when you select Direct : If the prices shown at the top are the ones you wish for; you click on the check mark to save. You will then be able to do your price change. When doing changes in the sub lines, you will always have to follow these changes with a price change, so JMS updates the product files. The other test is to go to the screen price test. The path is: click on Pricing, double click on Global View, click on the price test tab. 7

8 Testing your changes in your sub lines formulas Price change When performing a change in your sub line formulas, you have to proceed with a price change afterwards. Complete instructions for performing a price change are available by clicking the link on the JMS main menu. Uni Select s members do receive the price list each week: The first of the month the complete price list Each week cost prices promotions Activate cost promotions (Uni Select s members) To activate the cost price promotions, click on Inventory, and double click on $List Tools, click on the third tab: $List Promotions. 8

9 Activate cost promotions (Uni Select s members) Once this screen is shown, select the dates as explained below: The first Start Date is always January 1 st of the current year The last End Date is always December 31 st of the current year This allows you to activate the yearly cost promotions The second Start Date is the day of the next week that you will receive the promotions cost price; this is generally the Tuesday of each week. The first End Date is the same as the previous one. These dates will allow activating the cost promotions just in time and not ahead of time. 9

10 Activate cost promotions (Uni Select s members) The promotion cost prices allow having the ordering price up to date when preparing purchase orders. Be careful if your price structure is based upon cost price, as your selling prices will change consequently. This could mean that you could decide to update your cost price, but not your selling prices. The decision is entirely yours. Basic Discount Formula for your customers Once your sub line formulas are established, meaning that you have your basic products prices, you have to check the customers basic discount formula within the customer s file. To provide a price in an invoice, the system starts with the basic discount formula within the customer s file: accounts receivables, customer, invoice s tab. The basic discount formulas for the customers are: 10

11 Check on how the system provides the net price It is possible for you to know how the system provides the net price within the invoice screen. When you check prices for a customer within the invoice screen, the system registers a lost sale, for example, when you click on New, when you delete a line within the invoice, when you change quantity. To check which price the system utilized, click on this icon within the invoice screen:. You can find it at the top of the invoice when creating the invoice, and at the bottom of the screen when the invoice has been printed. Here is an idea of what the screen looks like when checking the : 11

12 Other steps The next steps are your decision. You can establish various discounts. We will review each one of them. The first discount is the special price. This discount is associated to customers models; it allows you to create a pricing structure for more than one customer at a time. To create customer s model: accounts receivables, model, and category. To see to which model a customer is associated to: Accounts receivables, customer, invoice tab. To see more than one customer associated to a specific model: accounts receivables, customers, printer, and customers by category, model. Special prices You can create a model for more than one customer. First, you create the model. This model will have to be associated to the customers in the customer s file (invoice tab) to whom you wish to give discounts. Even though a customer is associated to a specific model, you can give this customer, additional discount in the special prices screen. To do so, you click on the + sign and write in the customer s number. Create your special price for one customer. Create a model Click on Accounts receivables. Double click on Models and Categories. Click on the + sign to add a new model Write the information: The code can be alphabetical or numerical. Ensure that the type is showing Model. Both French and English descriptions are mandatory. 12

13 Associate the model to a customer Click on the check mark to save. You are now ready to associate the model to customers. You could prepare your special price list; test the special prices within the global view: Prix, global view, price test tab. Testing the special prices help you to confirm everything is fine. Follow the next steps to associate the model to the customer s file. Click on Account Receivables Double click on customers Select a customer and double click on its name to open up the customer s file Click on the invoice tab at the top left of the screen In the drop down menu for Model, select the appropriate model for the customer Click on the check mark to save the modification Once the model has been associated to the customer s file, you can establish your special prices. When establishing special prices You wish to create special prices that are different than the basic discount formula in the customer s file (customer, invoice tab, discount formula). The special price can end at a certain date, however, not mandatory. JMS will always show the lowest price in the invoice. However, if a special price is associated to a customer number (and not a model), this price will be shown in the invoice. 13

14 When establishing special prices The system analyses the following to establish the net price: 1. Takes the discount formula in the customer s file 2. If the customer is entitled to volume discount, JMS compares this price to the discount formula 3. If the customer is entitled to Uni Select s promotions or house promotions, the system compare the promotional price to the ones determined in steps 1 and 2 and keeps the cheapest price. However, if a customer special price is associated to a customer number and not a model, JMS keeps the special price. 4. The system analyses if there are environmental fees applicable 5. The net price is established within the invoice How to establish a special price Click on Pricing Double click on Special Prices Click on the + to add a special price Type the following information: Indicate the customer s number OR the model (it is either or) The customer s number will be written if you wish to create a special price for a specific customer; even though the customer is associated to a model. The update formula will be the one compared to the discount formula in the customer s file, volume discount, promotions to calculate the net price. A special price is created for one line code; mandatory as it is blue and bolded. You can associate other specifics such as product, sub line, classification. These are not mandatory though. You can decide to add and end date; not mandatory. The field markup formula is a formula that your customer will not be aware of and it allows you to get additional money. 14

15 Testing your special prices Once that the mandatory fields are filled and the non-mandatory fields you chose to fill are completed, you can save by clicking on the check mark It is strongly recommended to proceed with tests for your special prices before changing the model in your customer s file. You could establish yourself a test customer account to which you would associate your special price. On the other hand, you could prepare you special prices and test them by accessing Global view, and clicking on price test tab. Therefore you will be able to see if the result is the one you are expecting. In this screen: Type the customer number, click on enter Type the line code, your part number and the quantity Click on enter The system will show the price your customer will pay and where the price comes from such as: CLIENT SPECIAL means special price You will then be able to confirm that the price is the one you wished for Importing special prices It is possible to prepare a special price file to import it within JMS. You work on an Excel spread sheet. You keep the file in the Excel format in case of rejects when importing. To import your file, you will have to save it as a CSV (comma separated value) format. A document is available on the JMS help on line for this. Be careful to check which special prices are already within JMS; is your file adding special prices or replacing special prices. The special price wizard could help you in cleaning the special prices before importing. 15

16 Volume discounts The volume discounts do not have dates. Volume discount can be based upon any available JMS prices, associated to specific quantities of product sold. To create a volume discount, click on the + sign at the bottom of the screen. You will see this screen: All the fields are mandatory to fill in. Make sure that if you create more than one volume discount for a product, there are no missing numbers; such as: 1 à 5, 6 à 10, 7 à Sales promotions The house promotions have a beginning date and an ending date. They can be valid according to a certain amount of stock, valid for some customers categories, or all the customers. You can prepare a file to import them within JMS. The Uni Select s flyers promotions are automatically imported within JMS; unless you told Carrus not to perform this action for your store. Uni Select s flyers promotions can t be modified or deleted. To see them in the promotions screen, you check off this box: To create a house promotion you can click on the + sign at the bottom of the screen. The blue and bolded fields are required. 16

17 Sales promotions You can import a house price list in JMS To know which fields you need on your Excel spread sheet as shown below, click on System, double click on Importation, in the drop menu at the top, select sales promotions, click on the? and you will get the list below. Note that all the columns are mandatory in the Excel spread sheet. You now know how to establish your price structure. 17