Labor & Pricing Factors allow you to manage some basic global pricing settings in your system. This is set in Management Module > Global Settings > Pricing Settings > Pricing Settings tab.
There are four global settings defined under Labor & Pricing Factors:
- Shop Labor Cost per Hour: This is the actual cost to run your shop, not what you charge your customers per hour. This should include labor and overhead. It should NOT include production machine costs, which are calculated for each individual machine in your Machine Settings.
- Default Minimum Margin: This is the minimum margin that will be allowed on part.
- Default Desired Margin: This is the highest margin you could hope to achieve on a part.
- Default Maximum Discount: This number is the default maximum discount that will ever be applied and can be changed on each individual part.
The Shop Labor Cost & Margin Worksheet can be used to help determine the values entered in each of these four fields.
NOTE: The worksheet is only meant as a guide. Please make sure you have considered all variables and revise the values as necessary.
Using labor and pricing factors
Labor & pricing factors can be set from the Management Module > Global Settings > Pricing Settings > Pricing Settings tab.
Shop Labor Cost per Hour
The value entered in this field may affect both your cost and retail calculations. Shop Labor Cost per Hour can be used in the following ways:
- On machines: calculating labor cost as it relates to operating a machine.
- On parts: calculating labor cost as it relates to a part.
- In custom pricing formulas: for both modifiers and parts.
IMPORTANT NOTE: CHANGING THIS VALUE MAY AFFECT GLOBAL RETAIL CALCULATIONS IN YOUR SYSTEM.
On machines, Shop Labor Cost per Hour is used in calculations related to Setup Time and Labor Percentage.
On parts, Shop Labor Cost per Hour is used in calculations related to Labor Levels. Labor levels can be managed on the part or part group level from the Management Module > Parts > Parts > Details tab.
When creating a custom pricing formula, there are many built-in components that can be used. Shop Labor is one of these components and its value will match to the value entered in the Shop Labor Cost per Hour field.
Default Minimum Margin, Default Desired Margin and Default Maximum Discount
These three values are only used when creating a new part or modifier. These values will be used to generate the default Pricing Tiers table for each newly created part or modifier.
You can override these values on a part or part group from the Management Module > Parts > Parts > Pricing Tiers tab.
You can override these values on a modifier from the Management Module > Modifiers > Modifiers > Pricing Tier tab.
The system will display the Current Invoice number being used in your system. It will be the number of the last created invoice. If you wish to begin a new numbering system for your invoices, enter the new number in the box next to Enter Next Desired Invoice Number.
NOTE: We recommend you to update this once you have set up your system, just prior to GoLive.