Appendix C
7. Price Basis 3=Gross Margin % Markup/
Markdown
Use this method if you wish to mark up or mark
down from List/Base using a gross margin
percentage. A change to List/Base will change the
calculated price levels accordingly. This option
works well in a “sticker-less” store. It allows a
minimum amount of maintenance and you always
get the margin you want.
Gross margin is calculated using this formula:
Total Selling Price - Total Cost
Total Selling Price
See Appendix B in the Inventory User Manual for
the Gross Margin % Conversion Table for a quick
reference on markup percentages. Here’s an
example of the calculations for this price basis. If
an item’s cost is $10.00 and you want to mark up
from cost, enter 10.00 or the cost of the item in
List/Base. Then enter the percentage of the gross
margin you want to make on the item or the
markup in Price Adjustments 1-9:
Price
Level
Adjustment
Gross
Margin
%
Calculation
(Selling Price – Total
Cost) / Total Selling
Price
Selling price
for:
Price Adj 1 33.34 (15.00 – 10.00) / 15.00 PL 1 = 15.00
Price Adj 2 25.93 (13.50 – 10.00) / 13.50 PL 2 = 13.50
Price Adj 3 16.67 (12.00 – 10.00) / 12.00 PL 3 = 12.00
8. Quantity test in relation to Price Basis:
This is an easy way to give better pricing for large
quantities sold. This basis of pricing allows the
price level to automatically drop the price when a
customer purchases large quantities of inventory.
This is useful on screws or nails where a customer
can buy a single pound but if they purchase a 50
lb. box, the price drops down. Price Bases 10-13
are similar to Price Bases 0-3 except that price
adjustment levels 6-9 contain quantity breaks
rather than percentages or dollar amounts.
) NOTE: DO NOT assign customers Price Levels 6-9 if you
have inventory items with a Price Basis of 10-13.
This is because Price Adjustments 6-9 will hold
quantity breaks rather than percentages or dollar
amounts.
Dimensions 14 417
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