Chapter 5. Inventory
1 = Dollar Markup/Markdown
Use this method if you wish to markup or markdown from List/Base using
a dollar amount. It is similar to price basis 0 except you use dollar
amounts. A change to List/Base will change the calculated price levels
accordingly.
For example, if an item's cost is $5.00 and you want to markup from cost,
enter 5.00 in List/Base. Then enter the dollar amounts to markup in Price
Adj 1-9:
Calculation
List/Base + Dollar Amount
Selling price
for:
Price Adj 1 2.00 5.00 + 2.00 PL 1 7.00
Price Adj 2 1.80 5.00 + 1.80 PL 2 6.80
Price Adj 3 1.60 5.00 + 1.60 PL 3 6.60
etc.
Price level 1 customers will buy the item at $7.00. Price level 3 customers
will buy the item at $6.60.
If you want to markdown, from a list price (retail), use negative price
adjustments. For example (List/Base is $5.00):
Calculation
List/Base + % of List/Base
Selling price
for:
Price Adj 1 0.00 5.00 - .00 PL 1 5.00
Price Adj 2 - .50 5.00 - .50 PL 2 4.50
Price Adj 3 -1.00 5.00 - 1.00 PL 3 4.00
etc.
2 = Actual Prices
Use this method if you wish to enter the actual prices in price adjustments
1 through 9. No List/Base is needed. Whenever the prices change, you
must manually change each price level when you use this method.
Selling price for:
Price Adj 1 20.00 PL 1 20.00
Price Adj 2 18.00 PL 2 18.00
Price Adj 3 16.00 PL 3 16.00
etc.
3 = Gross Margin Percentage Markup/Markdown
Use this method if you wish to markup or markdown from List/Base using
a gross margin percentage. A change to List/Base will change the
calculated price levels accordingly. Gross margin is calculated using this
formula:
Total Selling Price - Total Cost
Total Selling Price
Dimensions 14 175
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