Cost-Plus Pricing is an advanced pricing model that gives you the greatest amount of control over pricing and can ensure that you do not charge less than your actual cost which protects your bottom line. This method totals your costs (including labor and overhead) and adds the profit margin as defined in the part's Pricing Tiers.
The Margin Chart Table shows you a break down of the Margins offered for each Pricing Tier based on the quantity breaks you specified.
Setting up the Margin Chart Table:
- Navigate to the Pricing Tiers Tab.
- Check Cost-Plus Pricing.
- Select how your Quantity Breaks will be determined.
Enter your desired Quantity Breaks into the cells below. Click Save & Recalculate.
- There are two ways to fill in the Margin Chart Table.
- (A) Minimum and Desired Margin: The Minimum margin represents the lowest amount of margin you are willing to accept for this part. It will populate to the highest Quantity Break and Customer Tier. The Desired Margin represents the highest amount of margin you can achieve for this part. It will populate to the lowest Quantity Break and Customer Tier.
- (B) Custom Margins: You can customize individual Margins by highlighting the number in the cell and entering the percentage you want. Then click Save Custom Margins.
- (A) Minimum and Desired Margin: The Minimum margin represents the lowest amount of margin you are willing to accept for this part. It will populate to the highest Quantity Break and Customer Tier. The Desired Margin represents the highest amount of margin you can achieve for this part. It will populate to the lowest Quantity Break and Customer Tier.
- Click Use Interpolation to allow a range of margin between Quantity Breaks.
