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Markup Tables

Summary: How to set up mark up tables for item and serial inventory.

Markup tables can be first set in item and serial inventory to affect all items/models.

They can also be set at the brand level which will override the ones set up in the variables. This is the most common way to do markup and will pull the rules from the entered markup table.

You can also set it at the individual item (not model) level but this is very rare. This will override variables and brand markup if they have been set.

 

Item Inventory

Markup

 

For our first example, we will assume sell price after the markup is $24.95.

Replace cents will change price to $24.98.

Replace dollars will change price to $29.98.

Replace ten dollars is not set up. If replace ten dollars was set to 9, the price would be $99.98.

Rounding is not typically used if any of the ‘replaces' are used. For example if the option below was set, it would change the price from $29.98 to $39.98 as it's the next one ending in 9.

The cost is set to average which will be used for the markup scale calculation.

 

Markup Scale

In the markup scale, if item cost 50 cents it'll mark it up by 600%; this is shown in line 9. It would go $3.50 ($0.50X6 + original $0.50) and then the .98 would be added to give it a price of $3.98 if replace cents is set to $0.98. This acts as a smoothing scale so for example an item with average cost of $0.6250 which is exactly between $0.50 and $0.75, would get a 550% increase which is the middle point between 500% and 600% (lines 8 and 9).

 

List Prices

 

Finally, we would need to determine what rules we want to calculate the list prices.

Gross margin is not typically used for items.

% of List 1 would calculate a percentage of L1.

Markup uses the markup scale. You can set it to use different codes under use markup.

 

L1 in this example would use the markup scale for markup code 1. This is the scale that was setup on the previous page.

L2 would use 95% of the L1 price. This would be calculated after the markup is applied.

L3 would use the markup scale for markup code 10 instead of markup code 1. This would have to be set up under a different markup table separate from the example went through earlier.

 

Serial Inventory

Markup rules would be the same and markup scale wouldn't be used for models.

List Prices

 

L1 would use 23% margin on the standard cost of the unit set up in the model. The margin calculation would be (Selling Price – Cost)/Selling Price. However, if you do any ‘replaces', it'll do those calculations after the gross margin calculation which will then affect the margin. IE if gross margin of 23% puts a sell price at $145.01, the replace options set above would put the price at $199.98 which would significantly increase the margin.

L2 would use 98% of L1 price and L3 would use 96% of L1 price; these calculations would be done after the above markup. It's best not to use replace dollars if you are using % of List 1 as it won't be an exact number.

 

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