Pricing Structures: Four Options for Keeping Pricing Flexible
When it comes to using pricing structures in your ERP, flexibility is the name of the game. If staying on top of your pricing requires frequent, manual maintenance, it’s more complicated than it should be. While some pricing maintenance is understandable, you’ll generally want your pricing to be a “set it and forget it” operation.
And while this post isn’t meant to be an all-encompassing guide for the setup of the pricing structures available, we do have a team of consultants who would be happy to help. Consider this post a quick overview of the various pricing structures offered. We’ll try and give some possible use cases for using the structures too. Here are a few ways to achieve pricing bliss in SalesPad Desktop.
1: Standard (GP) Pricing
SalesPad Desktop defaults to using standard pricing right out of the gate. When you create an item, you give it a price, and this is the standard price. If no other pricing methods have been configured, this will be used every time you sell your item.
Say you’re selling Led Zeppelin albums for $25 each. If the price for your Led Zeppelin albums is the same for all of your customers, you’re probably using standard pricing.
2: Group Pricing
SalesPad Desktop’s group pricing allows users to set up pricing for a group of customers or a group of customer addresses. If you have a few customers that you’d like to offer your sweet collection of records to for cheaper than you sell it to the masses, group pricing is the way to go. Simply create a group, add the customers who get the discount, add the item, and you’re golden!
It’s also worth mentioning that group pricing will override Dynamics GP standard pricing. To help keep the order of pricing structures crystal clear, we’ll include a list of the pricing priorities at the end of this post.
3: Customer Special Pricing
This pricing structure gets a bit more granular than group pricing. Use customer special pricing when you want to sell the same product to several customers for several different prices.
If you want to sell “Houses of the Holy” to Big Bob’s Record Shop for $24.99 each, but charge Frankie’s Fine Albums $23.50, customer special pricing is the easiest way to do just that. And if you’ve already got group pricing that covers the same customers that you’d like to use customer special pricing for, don’t sweat it — customer special pricing will take priority over the group pricing.
4: Contract Pricing
Contract pricing takes priority when you’re using multiple pricing structures in SalesPad Desktop. Since a contract price is a legally binding agreement, it’s imperative it be gine the highest priority. You want to do your part to adhere to the contract, hence contract pricing being given the right-of-way over other structures.
What’s the pricing structure priority?
If you opt to use several of SalesPad Desktop’s pricing structures simultaneously, you’re going to want to know which takes precedence over the others. Here’s what you can count on when using the pricing structures SalesPad Desktop has to offer:
- Contract pricing receives the highest priority
- If no contract pricing exists, Salespad moves on to customer special pricing
- If no customer special pricing exists, group pricing takes center stage
- When there is no group pricing, SalesPad Desktop defaults to Dynamics GP’s standard pricing
Honorable mention: Discounts
We’re giving an honorable mention to discounts because they work slightly differently than the pricing structures mentioned above. Whereas the four pricing systems mentioned previously are all line-level changes, discounts make a price change at the document header level. They’re effective ways to update pricing, but they’re a little broader and less detailed than pricing methods.
If you want to offer your friends at Big Bob’s Records a 10% discount on all merchandise for the month of October, look no further than customer discounts. With customer discounts, you set up discount percentages and time frames for sales documents. When creating a new document for this customer during the appointed time, the discount will automatically apply.
The trade discount field originates in Dynamics GP, but with SalesPad Desktop security clearance, it can be edited on either the customer card or on sales documents. Trade discounts are arguably the easiest discounts to apply to sales documents.
And there’s your quick primer on pricing structures available in SalesPad Desktop! This post focused on the pricing options available in our on-premises ERP product (SalesPad Desktop), but don’t forget to take a look at some of the pricing structures available for our cloud ERP solution as well.
For more information on what SalesPad has to offer on pricing strategies, don’t be shy! Reach out and schedule your own personalized demo!