Mitchell1’s manager is not just a tool to keep track of your customer’s repair orders. It’s a powerful profit machine- when used correctly. Have you ever set up your price matrix? The Price Matrix panel in Standard Tables allows you to apply markups to parts as they are added to orders and to inventory items. These markups can be structured based upon the item cost to create a tiered pricing structure.
To set up a Price Matrix:
- Select Standard Tables from the Setup menu. The Standard Tables dialog box displays.
- Select the Price MarkUp Matrix tab to display the Price MarkUp panel.
- Enter a “From” and “To” price in the first row of the Matrix for the parts cost range for the first markup tier.
- Enter a Markup percentage. Markup percentage is the percent over (or under, as represented by a negative number) cost at which you want the part to be priced at on Manager orders.
- Repeat steps 3 and 4 to apply markups to as many pricing tiers as you desire.
- Choose whether you'd like to apply pricing to inventory items based on Average Cost (the average cost of all inventory item purchases) or Last Cost (the cost of the most recently purchased inventory items).
- Choose Apply Matrix to Inventory if you want to overwrite the current inventory markups with the new pricing structure.
- Choose Done when finished. You are prompted to apply the markup to your Inventory.
- Click Yes.}
Price Markup Matrix allows you to scale parts markup according to what you paid for each part. In other words, parts that cost less than a dollar are marked up at much higher rate than a part that costs $100. We recommend using several levels to remain both profitable & competitive. Changes made to the matrix can be applied to parts by clicking on Apply Matrix. In Manager Plus, you have capability of using Last Cost or Average Cost. This is significant because:
1) Inventory parts can be set to transfer with either average cost or last cost applied. This makes a difference on invoice profitability reporting.
2) Last cost may place part into a different (higher) bracket and receive a different (smaller) markup than expected.