Inventory Price Management

The Auto Shop Writer system can change the parts of inventory either  manually, using the parts editor, or globally by selected criterion.  The Utilities for changing parts include:

Fixed percentage

To increase parts by a fixed percentage, enter the value by which the  RETAIL price of all parts is to be increased.  The following formula  is used:

Retail = Current * ( 1 + Increase % )

Therefore, if a part costs $10., and is increased 10%, the following  calculation is performed:

10 *( 1 + .10 ) = $1.10

The system will take all parts, and increase the retail accordingly,  without any specific selection criterion.

Specific vendor

With this option, the fixed percentage increase is used, but only on  parts for the specified vendor.  The system will increase the retail  of each price where the vendor is listed in position 1, 2, 3, or 4 of  the codes.  The same formula, and procedure, applies.

Specific manufacturer

The fixed percentage increase is used, but only on parts for the  specified manufacturer.  The system will work on parts where there is  an exact match on the manufacturer's name.  This is a vital reason  for using the lookup function for inserting names, because variations  in spelling cannot be detected by the system for this operation.

Cost range

Parts can be marked up based on their COST, and for a specific price  range.   The following formula is used:

Retail = Cost * (1 + Increase % )

Consequently, a part costing $10, with a markup of 100%, would be  calculated as:

10 * ( 1 + 1.00 ) = $20.00

This is different than  the fixed percentage markup.  In addition, the markup is for parts in  a specified cost range, ie. $10 to $20.

For appropriate profits,  parts with very low costs must be marked up more than those with high  costs.  For example, bolts, with a cost of $.05, increased by 100%,  are only $.10.  However, a $600 part, increase by 100%, may not be as  acceptable at its $1,200 selling price.  Use percentages that are  appropriate for the

item to be sold.  It is easiest to build a Table of Standard Markup to use with this  system.  On such a document, the percentage of markup would be  specified for each price range.  A sample would be:

•Cost:             to $    .25       Markup:  500%

•Cost:  $    .25 to $    .99       Markup:  200%

•Cost:  $   1.00 to $   4.99   Markup: 100%

•Cost:  $   5.00 to $  19.99   Markup: 90%

•Cost:  $  20.00 to $  49.99   Markup:  80%

•Cost:  $  50.00 to $  99.99   Markup:  70%

•Cost:  $ 100.00 to $ 199.99 Markup:  60%

•Cost:  $ 200.00 up           Markup:  50%

Wholesale as a percentage of retail

This option will calculate the four wholesale prices as a percentage  of the retail price already established.  Enter the percentage of  discount for each level.  For example, level 1 may be 2%, 2 may be  4%, etc.  Enter the values as whole numbers.  The computer uses the  following formula:

Price = Retail * (( 100 - discount % ) / 100 )

As a result, a part who's level 4 discount is 10%, and has a retail  price of $100, would be:

100 * (( 100 - 10 ) /100 ) = $90.00

Creating Price Markup Tables

The mark-up/mark-down table is a very powerful tool which allows  individualizing the pricing scheme for your parts.  You may have an  unlimited number of tables, but each must have a unique two character  code.  Letters and numbers are acceptable.  Each part may be assigned  to a table.

In normal operations, tables are usually created based  on the cost range of a part, or the vendor.  Some shops will only use  one table, while others have a variety from which to choose.  Enter  the values to be used as whole numbers, ie. 23% = 23.00.  The system  will change these to their decimal values during calculation.  The  system will calculate the retail price with the formula:        

Retail = Cost * markup

Consequently, for a $10 part, when determining the markup, calculate  the number of times you want to increase the price.  Therefore, if  you want to double the price, your markup would be 2.00.  If you want  the retail to be 2 1/2 times the cost, it would be 2.50. The discount  method for wholesale prices use the formula:

Level = Retail * Ratio %

Level refers to wholesale 1, 2, 3, or 4.  Retail is the price  calculated in the previous step, and ratio is the percentage of the  retail that you wish to set this price.  The ratio is calculated by  the formula:

Ratio = 100 - Discount %

Therefore, if you wish a 4% discount, your level would have an entry  of 96.00 percent.  Use this method for all four levels.

The Mark-Up Table is activated from the pricing utilities, or when  the pricing section is chosen

when editing an individual part.  The  ratio system allows the shop to always keep all parts priced

appropriately because it can be run frequently, and corrects for all  cost variations.

All prices by mark-up table

For a discussion of the markup table, see the section under System  Routines.  With this option, the computer will recalculate prices for  individual parts using their specific markup/markdown table.  When  prompted, enter a specific markup table code, and only parts with  that value will be adjusted.  Entering an XX at the prompt will cause  the system to recalculate all inventory prices according to the  specified markup table in the part record.  If the table is empty, no  action is taken.