Flexible Retail Price and How to Manage it In Candela
If you are a retailer or wholesaler you probably know this: though cost and retail are two standard types of prices you deal in, they are not the only types. Business owners want to remain open-ended about their pricing strategy. There can be different types of retail prices depending on the type of customer or the nature of the product.
And this is where flexibility and customizability of Inventory management software like Candela is helpful. Candela makes it extremely easy to implement different types of pricing strategies according to your requirements
In this blog post, we will show you how to keep retail price flexible and in which situations flexible pricing can be helpful.
Let’s get started!
Keeping Prices Flexible with User Price Feature
Flexible Price for Made on Order Products
As you know, Candela customer order and layaway feature helps you book advance orders for your products. At times, you may not have any idea about how much the finished product would cost, and the only thing you are certain about is the percentage of profit margin you want to keep. In such cases, you can simply define the percentage of profit you want to charge and keep your retail price flexible.
Candela will automatically calculate the cost price according to the profit margin.
Let’s understand this with the help of an example.
Suppose you have a boutique business where you also take orders for wedding dresses; you have no idea about what the finished dress would cost because the final cost would depend on the customer’s requirements like material, embellishments, etc. But you have fixed your profit margin at 40 % (this means your cost will be 60 percent of the total retail price), and want to have the flexibility to decide the retail price once the dress is made.
This is how you will manage it in Candela:
On Product Definition screen, define the product by entering its name and code.
Now in the Average Cost field enter the percentage of cost that will be incurred according to your pre-decided profit margin.
Don’t enter any price in the Retail Price field.
Mark the checkbox User Price and Save.
Configure Cost Price Calculation
The next step is to configure Candela for automatic cost price calculation:
Go to Configuration>System Configuration>Sale tab
Mark the checkbox Cost Price Calculation for User Price Products
Enter Price While Selling
Once you have defined your product with user price and made the cost price calculation you can sell it at any price you want to.
Go to Sales and Return screen
Select the product
Retail price pop up will automatically appear
Enter retail price
Receive payment and Save your sale
Candela will automatically calculate cost according to the percentage mentioned on the product definition screen.
You can check cost in sale reports:
Flexible Price for Everyday Items
Similarly, you can also manage flexible pricing for everyday products. There are certain everyday products whose selling prices you may need to change regularly.
For example, there is a frequent change in egg prices. You can follow the above-mentioned steps and use the user price feature to manage cost and retail of eggs. This means you will define egg, enter cost percentage according to the profit margin you want to keep against each egg and check the User Price checkbox.
Keeping Prices Flexible with Price Editing Rights
Another way to manage change in the run-time display of pricing is through price editing rights.
From Security>Users screen select the user (from the grid) to whom you want to give the price editing rights.
Now mark the checkbox Allow POS Price Editing
For the user having this right the price field on the Sale and Return screen becomes editable.
Date wise details of price change of product are available in C-11 report:
You can use the User Price feature to manage flexible pricing for your customer orders and everyday products. Price editing right also gives you the freedom to change run-time pricing display.
Have you ever used the User price feature in Candela? How do you use it or how do you intend to use it? Let’s talk about it in the comments
If you want to know more about various pricing strategies in Candela, shoot questions at us in the comment section!