Price Codes
Overhead and Markups
How to select markup values according to overhead costs (including income tax, purchases, and expenses) for a small, one person, frame shop/gallery.
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Most of the picture frame industry pricing gurus suggest having your Cost of Goods at 30% or less. The lower the better.
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FrameReady can generate a report to reveal this. See: Work Order Cost Report
Disclaimer
It must be emphasized that the pre-installed Markups, Formulas and Code Tables are included as a temporary beginning point to help you get started.
In no way does Adatasol Inc. suggest that these should be your formulas or that they represent an accepted industry standard. There are a number of books and courses that specifically focus on pricing techniques. If you are unsure of what you
should charge, then we recommend that you take advantage of the many educational opportunities that are available. That being said, the pre-installed formulas and code tables have been well thought through and you may use them with confidence. FrameReady
users new to the industry can count on the program giving them a good starting point.
How to examine your Cost of Goods
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On the Main Menu, click the Find Work Order button.
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The Find screen appears.
In the Date field, enter a date known to have one or several Work Orders. Click the Perform Find button. -
Click the Print Documents button.
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Click the Wholesale Costs button.
Depending on the number of Work Orders in the found set, this may take a few moments. -
A print preview of the document appears.
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Click Continue to proceed.
How to Read the Wholesale Cost Report
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The Wholesale Cost Report shows the wholesale costs and the retail price being charged. More important, it shows your percentage.
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Check the report to see which prices may need to be adjusted to provide you with a better profit margin.
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Check this report anytime you notice the Cost of Goods (lower left) shown on your Work Order screen is more than 1/3 of the price (top right corner).
Tip: The Cost of Goods is only visible (bottom left hand corner in grey text on a Work Order) when you are logged in at level2 or above.
