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In this This article will help you understand why pricing is crucial for your operations in Komet Sales. You will learn about “feature”, how to set it up, and learn about the various pricing methods available and how the system calculates suggested product prices. Furthermore, the article will guide you on how to manage your inventories, add markups and markdowns, and explain how price lists come into play. Additionally, you will find answers to some frequently asked questions.
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Important information. |
Table of Contents
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How Does the Feature Work?
Description.
Key points:
Requirements
Description.
To enable this feature, you need the following:
Go to
Do
Why is pricing important?
Effective pricing is a critical strategy that significantly impacts a product's success. It directly affects revenue and profitability, shapes your market position, and is key to standing out in a competitive market. Komet provides powerful tools to help you streamline your pricing decisions. By using the Inventory Pricing screen, you can effortlessly set up prices and customize settings to automatically calculate the final pricing of your products across all sales channels, including e-commerce. This feature makes pricing a breeze, saving you time and effort.
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Company GPM
The Gross Profit Margin (GPM) is what the system uses to determine the suggested prices for your products and assigns it as Price A, the price that Komet will use as a default price, making it easy to calculate the product’s suggested or final price.
To set up your company GPM, do the following instructions:
Go to Setup and select Settings.
Click on Financial Settings from the Company Setup group of settings.
Enter the GPM %.
Optional: Set an alert when the price is manually entered and it does not comply with the GPM.
Click on Save.
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Remember to set the GPM correctly to guarantee that suggested base prices align with your business needs! |
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You can also set a custom GPM for a specific customer that the system will use to suggest product prices (MSRP) in the e-commerce. To learn more, read Set Up a Customer’s GPM. |
Setup
Description.
To do “action”, do the following instructions:
Go to
Do
Conclusion.
Are there different pricing methods for the same products?
Yes, there are; in the Inventory Pricing screen, you’ll find four price columns where you’ll see suggested prices and can manually modify them. Each column will serve as a price that applies in different ways to the products you are selling:
Landed Cost. This cost is determined based on the shipping method chosen for the order and any applicable unit cost components like cost, freight, handling, duties, inbound freight, and additional charges.
Price A. This is the Default Price within Komet and it is displayed in the Price A column in the pricing screens. It's calculated according to the product landed cost and the company's GPM.
Price B. This price is used for Default Type B Customers. Some companies might want to use it as an alternative price for some customers according to sales negotiations, or you can use it as a reference price.
Web Price. The price the system will display in the E-Commerce.
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What is the default price? |
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Best Practice! |
What else affects product prices?
Once you set the prices on this screen, other factors come into play when the system calculates the final price that your customers will pay. The additional factors are the following:
Company and E-Commerce Settings
Salesperson User Settings
In this guide, we will review each of these factors in detail. You can keep reading or click any of the items above to skip to that section.
Landed Cost
The Landed Cost is the sum of the costs associated with a product, which may be related to its manufacture and logistics.
How is the landed cost calculated?
There are two types of landed costs: Estimated and real.
Estimated Landed Cost. The estimated landed cost is calculated based on the Unit Cost, AWB Freight, Handling, Duties, Inbound Freight, and Additional Charges.
Real Landed Cost. The real landed cost is calculated when you make the Purchase Order and AWB reconciliation by adding the freight and handling costs to the unit cost, duties, and other additional charges incurred during the procurement of the product.
Before the product arrives, the system will display an estimated landed cost. Once the grower adds the products to an AWB and confirms the shipment, the system will calculate the real landed cost and update the product price accordingly in the Staging Area.
Landed Cost as Price
You can use the landed cost as a price where the gross profit margin (GPM) will be zero percent, and the price will be recalculated when generating the final order, overriding the price that was set in the Prebook. This price will be the one displayed on the sales screens for this customer.
This feature applies to both units and boxes.
If you want to learn how to set the Landed Cost as Price, go to Use Landed Cost as Price.
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Best Practice! The landed cost as price setting is commonly used in companies where products are moved between different locations or sister companies to keep track of their transactions without affecting their financial recordkeeping. |
Additional Information
Description.
To do “action”, do the following instructions:
Go to
Do
Conclusion.
FAQs
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