Overview of Stock Item Pricing Types
You can set the pricing type for a stock item as List, Margin, Markup, Level List, Level Margin, and Level Markup in the IN Stock window.
• List: the selling price is the amount you enter in the field.
• Markup: the selling price is calculated using the following formula: $Price = Cost x (1+Markup). This formula yields a price that is your specified percentage above cost.
Example: Markup Pricing |
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You buy a textbook for $100, select Markup as the pricing type, and choose 25% for the Markup amount. When the sale is made, your selling price will be $100 plus the markup of 25% on your cost ($100) for a total price of $125. |
• Margin: the selling price is calculated using the following formula: $Price = Cost / (1-Margin). This formula yields a price of which your specified percentage is profit.
Example: Margin Pricing |
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You buy a textbook for $100, select Margin as the pricing type, and choose 25% for the Margin amount. When the sale is made, your selling price will be $100 plus the margin of 25% (which is calculated on the selling price) for a total price of $133.33. |
• You can set up price breaks for List, Margin, and Markup pricing types.
• Level pricing types are used only when you establish
Price Level Codes. Price Level Codes allow you to set up different prices for groups of customers.
Published date: 12/21/2020