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The distinct advantage of pricing by Formula is that it is flexible and versatile. Consequently, Formula pricing can be very simple or very complex.
Important: The objective, when pricing by Formula, is to achieve a Retail Price per foot/meter.
To calculate a Retail Price Per Foot, FrameReady uses a Formula statement that evaluates your Cost (which can be based on length, chop, or join) and multiples it by a Markup.
A Formula can be a simple statement, such as, Cost * 4 (this tells FrameReady that you want to use the value of the Cost field, i.e. Length, and then mark it up four times).
Or, if you want to use the value of the Chop field, then the Formula would be Chop * 3 (the Markup value used here is arbitrary; it is determined by what you think is appropriate for your retail setting).
Or, a slightly more complex Formula
might include a fixed amount and add it to first part. For example,
Chop * 3 + 2
This takes the value of the Chop
field, multiples it by three and then adds two to that amount. So,
if the Cost of a moulding is $4.50 per foot, then the Retail Price
calculates out to $15.50 per foot ($4.50 * 3 = $13.50, then add $2.00
= $15.50)
Important: in the Formula field the words: Cost; Chop; and Join represent the field value of the same name. This means that if the field value (wholesale cost) changes, (via a price update) then the net result (the retail price) of the Formula changes.
The distinct advantage of pricing by Formula is that it is flexible and versatile. Consequently, Formula pricing can be very simple or very complex.
The default Formula that comes with FrameReady is a sliding scale formula and can be viewed as very complex. First of all, it evaluates which Cost field (length, chop, or join) you wish to use, and then based on the Cost value in the field, it determines the corresponding Markup.