Activant Dimensions Getting Started page 425

Dimensions 14
7. Price Basis 3=Gross Margin % Markup/
Markdown
Use this method if you wish to mark up or mark
down from List/Base using a gross margin
percentage. A change to List/Base will change the
calculated price levels accordingly. This option
works well in a "sticker-less" store. It allows a
minimum amount of maintenance and you always
get the margin you want.
Gross margin is calculated using this formula:
Total Selling Price - Total Cost
See Appendix B in the Inventory User Manual for
the Gross Margin % Conversion Table for a quick
reference on markup percentages. Here's an
example of the calculations for this price basis. If
an item's cost is $10.00 and you want to mark up
from cost, enter 10.00 or the cost of the item in
List/Base. Then enter the percentage of the gross
margin you want to make on the item or the
markup in Price Adjustments 1-9:
Price Gross
Level Margin
Adjustment %
Price Adj 1 33.34
Price Adj 2 25.93
Price Adj 3 16.67
8. Quantity test in relation to
This is an easy way to give better pricing for large
quantities sold. This basis of pricing allows the
price level to automatically drop the price when a
customer purchases large quantities of inventory.
This is useful on screws or nails where a customer
can buy a single pound but if they purchase a 50
lb. box, the price drops down. Price Bases 10-13
are similar to Price Bases 0-3 except that price
adjustment levels 6-9 contain quantity breaks
rather than percentages or dollar amounts.
NOTE: DO NOT assign customers Price Levels 6-9 if you
have inventory items with a Price Basis of 10-13.
This is because Price Adjustments 6-9 will hold
quantity breaks rather than percentages or dollar
amounts.
Appendix C
Total Selling Price
Calculation
(Selling Price – Total
Cost) / Total Selling
Price
(15.00 – 10.00) / 15.00
(13.50 – 10.00) / 13.50
(12.00 – 10.00) / 12.00
:
Price Basis
Selling price
for:
PL 1 = 15.00
PL 2 = 13.50
PL 3 = 12.00
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