Appendix C
Price
Level
Adjustment
%
Markup
Calculation
L/B + % of L/B
Markup
Selling price
for:
Price Adj 1 100.00 10.00 + 10.00 PL 1 = 20.00
Price Adj 2 90.00 10.00 + 9.00 PL 2 = 19.00
Price Adj 3 80.00 10.00 + 8.00 PL 3 = 18.00
Customers assigned to price level 1 will purchase
the item at $20.00. Price level 3 customers will
purchase the item at $18.00. Usually lumber and
commodities have List/Base as the
cost (using the
Base side of List/Base) of the item. Then use a
mark up percentage to calculate the different
price levels. On the other hand, hardware items
have List/Base as the suggested retail from the
vendor (using the List side of List/Base). Then
use a mark down percentage (negative
percentage) to calculate the different price levels.
5. Price Basis 1=Dollar Markup/Markdown
Use this method if you wish to mark up or mark
down from List/Base using a dollar amount. It is
similar to price basis 0 except it uses dollar
amounts. A change to List/Base in an item will
change the calculated price levels accordingly.
For example, if an item’s cost is $5.00 and you
want to mark up from cost, enter 5.00 in
List/Base. Then enter the percentages to mark up
in Price Adjustments 1-9:
Price
Level
Adjustment
$
Markup
Calculation
L/B + $ 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
Customers assigned to price level 1 will purchase
the item at $7.00. Price level 3 customers will
purchase the item at $6.60. If you want to mark
down from list (retail), use negative price
adjustments.
6. Price Basis 2=Actual Prices
Use this method if you wish to enter the actual
prices in price adjustments 1-9. No List/Base is
needed. Whenever the prices change, you must
manually change each price level when you use
this method.
Price
Level
Adjustment
Actual
Price
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
416 Dimensions 14
To Next Page
Loading...