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ServMan has many powerful pricing tools that allow you to tailor pricing to suit your company’s needs. ServMan has 5 built in pricing levels that allow you to enter 5 discrete prices for stock non-stock, service, template, assembly and labor codes. These prices levels can be selected on quotes, work orders and invoices ensuring that the correct price is applied. (Created and maintained on the item Pricing TAB). In addition to the 5 standard price levels the software also allows you to create custom Price Books with virtually unlimited flexibility. Note: Flat Rate components have a unique pricing structure and do not use pricing levels or price books.
All ServMan items contain two fields, Cost and Retail, which can be used for price calculation using price books or using the ServMan Retail Price Adjustment Procedure, described later.
The cost field reflects the current cost of the item. ServMan will normally update this field each time you receive the item into inventory, however this feature may be turned off for any specific item by checking the “Do not update cost when received” check box on Page 2 of the Item setup screen. You may wish to check that box when an item has very volatile pricing, if you are purchasing the item with a special, one time discount, or the item number represents a generic item such as “Miscellaneous Parts” where the price may vary. This cost is the default cost for populating purchase orders, quotes, work and sales orders.
The retail price is the price that will be charged for the item if the customer does not have a special price book associated with their account and there is not a default system wide price book. In many instances the retail price may represent a manufacturer’s suggested list price. Note that if your company uses Flat Rate pricing then the retail price for most items will either be zero or the price on orders and invoices will be set to zero by a price book.
ServMan Price Books are a powerful tool that performs pricing calculations “on the fly”. This is not intended to be an in-depth review of Price Books, but the following illustration represent how the Primary Category may be used as criteria for pricing. You may wish to markup up from cost or markdown from the retail price depending on your industries prevailing pricing model. When basing pricing based off of cost the price will be based off of the cost at the time it was entered onto a quote, work order or invoice. If the cost basis changes ServMan Will Not update the pricing automatically.
Price Books are created and managed under MasterFiles->Miscellaneous. PriceBooks allow you to create rules that will be applied to your clients quotes, orders and invoices. Rules can be based on mark ups or mark downs and applied to Manufacturers, Categories, Item types of specific item codes. If a price book does not contain a rule for an item, the client will be charged retail. Once created the price book is assigned to the client record. If you have project specific pricing you can optionally assign a price book to a Job record that will be applied to documents created under that Job.
ServMan has an optional procedure that allows you to adjust the retail price at any time. This is especially useful if you are not using Price Books. Please contact ServMan support to request the Retail Price Adjustment procedure and installation instructions if it is not already present in your system.
Locate the “Retail Price Adjustment” procedure in the ServMan System Procedures and DBL-Click:
A window will appear for you to enter your selection criteria. The default settings as illustrated below will set the price of all items based on a %markup from the item cost. Simply enter the desired mark-up percentage and click “Apply Retail Price Changes”.
In addition to marking up from cost, you can also set prices based on a desired Gross Profit %, or adjust prices using the current retail price as the basis.
If you want to see the proposed price changes listed in a report before committing to them, click the check-box accordingly before running the procedure.