A Price Level is another way to manage the various retail pricing schemes used in the system. Price Levels are methods used to markup items. Price levels appear in the Markup Method drop-down list in invoice items. Markup is defined as the percentage or amount added to direct cost to arrive at a retail selling price. Total Office Manager is also capable of using Inventory Markup Tables (see related topics below, for more information).
From the main menu, click Company | Price Level List.
Perhaps the easiest way of using the commands available in this list is through it’s right click menu. The right click menu is identical to the title menu.
- To create a new price level, right click anywhere in the list and choose New Price Level from the pop-up menu.
- To edit a price level, right-click on it and choose Edit Price Level from the pop-up menu.
- To delete a price level, right-click on it and choose Delete Price Level from the pop-up menu. Note: It may not always be possible to perform this action – inactivation may be more appropriate.
- To inactivate a price level, right-click on it and choose Make Price Level Inactive from the pop-up menu. This can also be done by checking the “Inactive” checkbox within a record itself.
- To export whatever information is currently displayed in the list, right-click anywhere in the list and choose Export List from the pop-up menu.
Creating a New Price Level
- Right click anywhere in the Price Level List and choose New Price Level from the pop-up menu. The Add Price Level form will appear.
- Enter a “Price Level Name”.
- Select a “Pricing Method” from that drop-down list
- Enter a “Value” in the field provided.
- Click “OK” to save and close the form, or click “Next” to save an create another.
Effects of Cost of Goods on Price
By lowering cost of goods (better supplier, lower labor costs) you can:
Lower your price to increase sales
Maintain price and improve your gross profit and profit margin
Reducing Cost of Goods has a direct effect on your BOTTOM LINE!