Our inventory Reference Margin system has received a major update that is expected to be of significant value to many stores. Paladin POS has automated calculation of inventory quantity price breaks (prices 2-4) based on a DISCOUNT from price one! Now you may offer a quantity price break for an item that is an exact discount of say 10% from price one. Price three could be a discount of 15% from price one and price four could be an 18% discount.
Regardless of the fluctuation in price one (up or down) prices two through four will be automatically maintained at the exact discounts you specified. This allows you to advertise a simple but effective statement in the isles of your store: “10% off all case quantities of Caulking” or filters or ____. This simplicity is achieved though the use of negative Ref Margins in prices 2-4. Most stores have used the Ref Margin feature at some point in their pricing strategy to allow EDI and received Purchase Orders to automatically establish a retail price calculated from the current market cost and the stated reference margin. Our new feature uses “the other side” of reference margins. Simple isn’t it?
Most stores are aware of the “calculator” features built into the Pricing Levels display. Change any value on a particular pricing level, and the remaining fields display the resulting effects of your change. We’ve further enhanced the calculator functions present in this display. Anytime a negative Ref Margin is entered on a pricing level, the new discounted Sale Price is displayed (and its margins) and the Sale price and margin columns are grayed out to prevent manual entry of new values. Naturally you can’t specify a discount and a specific price and/or margin. Also anytime price level one is changed, levels 2-4 are automatically updated to reflect the new discounted prices.
Positive and Negative Ref Margins can not be mixed on pricing levels 2-4. Obviously price level one will not allow a negative Ref Margin to be saved. One other restriction involves items with a supplier defined “multiple retail units”. When one of these items is processed by EDI, negative reference margin lines will be over-written with the supplier provided data. To prevent this from occurring, lock the pricing panel to prevent supplier updates to this family of data.
The example below illustrates use of a positive Ref Margin on price level one and negative Ref Margins on price levels 2-4: