In this Article: Show
You can set a minimum retail price so that moulding will not fall below a specified dollar amount per foot, e.g. $12.50
Rather than using a markup Cost<2.50; Cost * 5; and having moulding with a cost of $1 being sold for $5 per foot…
you can enter the retail price Cost<2.50; 12.50; and all moulding with a cost below $2.50 sells for $12.50 per foot.
There is a simple calculation to determine the Cost Break between the minimum retail price you want to charge and when a moulding will go above that amount at your regular markup.
Retail Price divided by Markup = Cost breaking point
For example, you want a minimum Retail Price of $7.50 per foot on Length but your formula in FrameReady looks like this:
Let([
Length Price =
Case(
Cost<2.50; Cost * 5;
Cost<3.75; Cost * 4.9;
Cost<5.00; Cost * 4.8;
Remember, Retail Price divided by Markup equals Cost Breaking Point.
If the retail price is $7.50 and the Markup is 5 then
$7.50 divided by 5 = Cost Breaking Point
$7.50 / 5 = $1.50
Add in the new Cost Breaking Point of $1.50 and the formula looks like this (the newly added line appears in bold):
Let([
Length Price =
Case(
Cost<1.50; 7.50;
Cost<2.50; Cost * 5;
Cost<3.75; Cost * 4.9;
Cost<5.00; Cost * 4.8;
Now, all wholesale costs below $1.50 will retail at $7.50 per foot and all wholesale costs higher than $1.50 will result in a higher retail price, e.g. $1.51 * 5 = $7.55
The same can be done with a Sliding Scale Markup for Chop Pricing
You want the minimum Retail Price to be $9 per foot on Chop but your formula in FrameReady looks like this:
Case(
Chop<5; Chop * 2.85;
Chop<10; Chop * 2.8;
Chop<15; Chop * 2.75;
Chop<20; Chop * 2.7;
Chop<25; Chop * 2.65;
Chop * 2.6);
As before, lets calculate your new Cost Breaking Point. Remember, Retail Price divided by Markup equals Cost Breaking Point.
If the retail price is $9.00 and the Markup is 2.85 then
$9.00 divided by 2.85 = Cost Breaking Point
$9.00 / 2.85 = $3.16 (rounded up from 3.15789)
Retail Price divided by Markup equals Cost Breaking Point.
Add in the new Cost Breaking Point of $3.16 and the formula looks like this (the newly added line appears in bold):
Case(
Chop<3.16; 9.00;
Chop<5; Chop * 2.85;
Chop<10; Chop * 2.8;
Chop<15; Chop * 2.75;
Chop<20; Chop * 2.7;
Chop<25; Chop * 2.65
Chop * 2.6);
Now, all wholesale costs below $3.00 will price at $9.00 per foot and all wholesale costs higher than $3.00 will result in a retail price higher than your minimum of $9.00, e.g. $3.17 * 2.85 = $9.03
Cautuion: ALL AMOUNTS SHOWN ABOVE ARE FOR USE AS EXAMPLES ONLY AND ARE NOT INTENDED AS A RECOMMENDATION OF RETAIL PRICE.