Introduction to the Price Rounding System

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Introduction to the Price Rounding System

okay I’d like to welcome everybody to the ACR webinar on our new selling price rounding system this webinar will take us through the setup process and how to use the price ramming system within a CR the system has been designed to make setting your selling prices as easy and convenient as possible when making cost changes to products within your product stop fire so what we’re going to be covering today we’re covering we’re going to be covering how the price rounding system works how to set your price rounding rules up and how the price rounding rules get applied within a CR so we’ve got a bit to cover but we shouldn’t take too long today and it should be well worth that time so with the introduction of the new price rounding system it’s now possible to set up rules about how your sell price will be rounded when making cost changes these rules can be set up in a number of ways to achieve whichever style of price rounding you require these rules can be set up to have simple rounding rules such as all prices end in ninety-five cents or you can set up some very complex rules with a large number of conditions used to determine what happens between certain price points to your end selling price so it is possible to end up having a very complex set of rules or to keep to a very young simple set of rules to start using the price rounding system all we need to do is set up our rounding rules and then we can start working with them you don’t actually have any other configuration behind the scenes that you need to do before you can start utilizing the system when price training rules are configured they’ll be used when the price change screen is displayed after a cost change or cost adjustment has been performed and this could either be a manual adjustment or as a result of a stock receipt so when a cost change occurs the ACR system will first apply your products markup or margin to the to the new cost and then it’ll round the resulting price that your markup or margin gives you so what we’re going to do is we’re going to have a look here now so the new price rounding maintenance can be located on your default menu under toolbox maintenance product price rounding maintenance in the property maintenance screen we can see the fields that allow us to set up the rules for our price rounding the rules that are set can be as simple as complex as your requirements need you can set up a single simple rule that will apply to all your prices or a set of rules that apply to different price ranges so what I just want to go through the available fields first so you’ve got your price inclusive from and price inclusive to so the price rounding is done on the inclusive of GST prop sale price for a product that has no GST applicable it’s still done to the price that is seen in the price inclusive of GST column in your product file the trunk to hold dollar tick box this allows for rounding rules that require the price to first have the sense dropped off before the rounding is apply will actually be using some examples of this tick box in this webinar so you will get to see how it actually works next we have type and there’s two options here round two and replace with they sound similar but I’ll explain the difference round two this will set the price to be rounded to a number that is divisible by the value entered in the amount field for example if you entered 0.05 in the amount field what we’ll end up with is values that are divisible by 0.5 so we’d end up with prices prices ending in things like 25 cents or forty cents or 35 cents however if we enter in 55 we don’t know with number numbers that are divisible by that surrounding would end up with things like we don’t know with

prices like it around up to a dollar 10 or round up to a dollar sixty-five prices that are divisible by 55 cents replace with however this will this will replace the the last number in the price with the value set in the dollar and cents field for example if we set a price of 95 cents and leave the dollar blank it’ll set the it’ll set it so that you’ll have prices attending 95 cents so you’d end up with prices like 495 or 995 or if you’d entered 4 and 9 in the dollars and ninety-five cents in the percents field direction this sets where the pricing will go and those options are next previous and nearest so next around the price up to the next configured value so this this will also mean that it will set the price Inc to as the highest possible price to round to selecting previous will means it’ll always round down and we’ll set the price ink from as the lowest possible price to round two and nearest we’ll look for what is nearer the pride plot the price below or the price above around to that it will also set the price ink from is the lowest and the pricing to is the highest and this is a note the direction field set either the high low or both possible prices based on which direction is set this is done to remove the chance of having a gap when you set a price so basically it’s designed so that you don’t end up doing like you can’t end up with a price that is going to round down to a price that’s outside of the configured options or round up to a price outside of the configured options so will always set the highest or lowest limit depending on with what has been selected now as we’ve seen if you select the round to the amount field is available this is where you enter the value that the rounding will will calculate on it’ll end up producing a set of prices that are divisible by the number that is in the amount field if we are using replace with the dollar field is available and this sum is where you determine what happens to the dollars in a price so for example if we entered 0 in here and we’d entered in ten dollars our price that we were going to round oh sorry if we dented in eleven dollars as our price we wanted to round and we taught it to round down the previous it would round down to ten dollars because it’ll it’ll look at the first value of the dollar in the dollars and replace it with zero same as if we put five in here and we put eleven dollars cited next put eleven dollars as our example it would replace 11 with 15 because it’ll replace that last one with a five instead of the zero like we had previously the sense work the same you don’t need to enter a decimal point here you just enter the amount of sense you want and what this will do is this will then replace the sense so if you haven’t got anything in dollar and you’ve put 95 it will just straight replace whatever sense come out in the in the price after the markup or margarine is applied and replace that with 95 the price rounding said area this will display up to the first 50 available rounding options this uses the price we’re all set to determine what possible prices are achievable for rounding if more than 50 possible rounding points exist will only show you the first 50 this is designed as a bit of a sanity check to have a quick look and determine whether you’re happy that it’s going to round two prices that you want it to or whether there’s something that’s been included that you maybe didn’t want an elated to fix that before you leave this screen you can actually test the price rounding rules you’ve set

up using the checking tool at the bottom here you simply enter the price before rounding you wish to check press process it’ll display the price that will be rounded and then it will display the actual rounded price this comes into effect specifically when we’re using trunk to hole and will we will use that in a moment so what we’re going to do now we’re going to do our first example we’re going to use the round crew feature will first set up a price rounding rule that will go from little cover all prices from one sent to two hundred dollars will leave the trunk to hold all or off set the type to rounding in and direction to next so what we’re going to do here we’re going to set the one sent to two hundred dollars leave that set round to next and in the amount we’re going to put 0.5 this is going to achieve having the sell price round to a value that’s divisible by 0.5 so what we can see here is if we put in a sell price of 25.8 hit process we’re going to get twenty-five dollars and ten cents as our rounded price now we can put in pretty much any price we want here up to 200 to see what it’s going to result in so 185 46 process 185 50 so this is a way of being able to check specifically what a price will will result in but as mentioned here will display the first 50 possible results to be able to have a look at so we’ve had a look here at a simple one we’re going to go to example 2 we can now see that the price rounding being the fact that the price will round to a number divisible by the value entered in the amount field a bit clearer so by now we’re going to change this rule and we going to change it instead of 0.05 benefit another of dollar 75 so so what we’ll see here is that we’ve got again a much different set of values showing so if we again use our 25 point Oh a it in the price checker and we hit resolve what we’re going to see is we’re going to see a value of 26.25 we return this because 26.25 is divisible by a dollar 75 so that’s the round to feature there nice and simple not too difficult the next option we’re going to go with is in our next example we’re going to start looking at the replace so to do this we can simply set 0.01 and this time we’re going to go up to 199 95 we’re going to still leave the trunk to Holt and off we’re going to set it to replace though we intercept that we’re gonna leave the direction as next this time however what we’re going to do is we’re going to round 2 25 50 75 and 95 cents so we’re not going to worry about what we’re doing with the dollar we’re going to replace the sense with the next either 25 50 75 or 95 so to do that we enter 20 50 75 95 nice and simple and what we’ll see here is that we’ve got 20 50 75 95 a dollar twenty dollar fifty dollar seventy-five a dollar ninety-five all of those four cent options available right up to 100 995 so will now do a quick test on that just so that we can see a result um we’re going to winter 5580 this time as our price when we hit process will now see that the 5580 has rounded up to the next available which is 95 cents so it’s rounded up to 55 95 now if we get it now we can do a little lump example here and we can change this direction from next to nearest and we will see a difference in the price achieved when we round when we apply it this time we’re going to do the same we’re going to do the 5580 again we’ll hit process and this time instead of getting 5595 we’ve got 5575 because 5580 is closer to 75 than it is in 95 hence

direction nearest it’s determined to round down if we’d set this to previous we would have will achieve the same result because it had just grounded down previously anyway okay so we’ve now done we have a look at the round two we’ve done a very simple Replace option and this is a valid way of rounding and a lot of people when they were talking to us about this we’re looking for this style of rounding now we do have a more complex tile around you that we’re going to look at now and this is just where we’re going to have multiple sets of rules depending on what price point so we can set up at a more complex set of pricing rules that will treat different price ranges with different rules as an example we can see the following set of rules we’re going to set up a relatively quick to set up once you know what you want to set up this set of rules has six pricing ranges set up in it that again a cover prices from one set all the way up to 99,999 dollars and ninety-nine cents so it’s basically covering all of your price with about potential price ranges so we’re gonna set up the first term we’re going to be able to say that these will cover prices up to nine dollars 95 we’re not going to be doing anything with the dollars but they’re going to have a number of different options available with the sense so we’re going to leave that at 0 0 point 0.01 sense we’re going to take this up to 99 cents leave it with replace and next and this time we’re going to have 10 20 30 40 50 60 70 80 90 and 99 so while i’m doing here is when i finish 1 i’m just pressing enter it’ll automatically make available the next field to type in so that’s our first rule that anything below a dollar we want to round it up to the next point here so we’re then going to add a price range and this time we’re going to take it from one dollar to nine dollars 95 now the system does do a check to make sure that you don’t have overlapping prices because you each range must have a unique set of a unique price range in it you can’t have any overlap it is possible to end up with a gap if you’re not careful and you don’t do it methodically so we’re going to keep with the replace within the next this time for our prices between one dollar and nine dollars 95 we’re going to round them to 25 50 75 and 95 so for the next two rules they’re going to cover the prices between nine dollars 96 and 9995 and this is going to round dollars oh this is going to replace dollars and cents they do this by replacing the the value in the individual dialogue column and in the sense column with the next configured combination so what we’re going to do we are at a price inning now at the end of the dollars if you press ENTER again it’ll actually move you up to the sense here we’re going to go for 2996 and 9995 replace with we’re going to do four and nine and 95 all right so what we’re going to see here is in this set that allow you to round two prior it’ll replace with prices of 495 on 995 so we can now set up some and we can actually use the trunk to hold dollar feature for the last two so what we’re going to do here is we’re going to set up another one for 9996 to 199 i’m ninety-nine ninety-nine this time we got to do the truncate and replace with

we’re going to use five and nine now when doing this it is important to add 00 with the trunk to hold dollar because as you can see here at the moment it’s going to look to round to every cent until we press ENTER on this and it will now look to round two only the whole dollars so we can now chuck in our last 100 round replace with this time we’re just going to go for nine and zero zero sense so to check out to test these what we’re going to do we can actually have a bit of a look at some of the some prices here and actually see what’s going to happen so we come down here we can do $55 80 and process and we can see it’s going to give us 5995 so if we have a look up here we can see that it’s going to be this set of prices so you put $55 80 it’s been told to replace with next so nine dollars 95 we can see here that the next price after 5580 is 5995 so it’s returned us the price we would expect now in the in these larger ranges what we can do we can do a price let’s have a look at the price of two hundred and nine dollars 99 and process this is where we can see the trunk ate two whole dollar come into effect with the results we could see that it’s actually truncated the 99 cents off initially and then looked around to the next nine dollars so we’ve ended up with two hundred and nine dollars now if we were to take the trunk ate the whole dollar off and that same price in you’ll see that it’s now rounding 209 dollars 99 and going to replace it with rounded up to the next 900 which is 219 so as you can see here that trunk to hold dollar has had a ten-dollar effect on the final price the viewer truck if you wanted to say 209 dollars 99 basically you want that to just go to 209 then you need to have the trunk to hold dollar turned on and the 00 in the sense and that will go to 209 with it the trunk to hold dollar turned off 200 999 is returning us a price of two hundred and nineteen dollars so we’re going to turn it back on now once you’ve entered all your rules as you’ve seen I’ve not been pressing the Save button at this point the price checking feature is available at any point in time without having saved so as you’re working through you can do your example prices without a concern about having to type in and make sure I keep saving it to be able to do your checks but it is important that once you’ve completed it you do save it to get it locked in so we’re going to have a look at now is we’re going to actually have a look at the price rounding rules and how they actually get applied so for this we’re going to need to actually trigger a cost change within the system so I’m going to quit out of this I’m going to go to our cost adjustment utility now this what I’m going to do here I’m doing it just by a manual cost adjustment this would be the same if you had done it if a price had come up from the auto file if you’d had a price change at stop receipting the same will affect so what we’ll do we’ll bring up a product and we’re going to do a price change i’m going to change the price to 15 doll of the cost sorry wind or cost change you change the cost of $15 80 so when I trigger that we’ve now got our maintain price maintain margin and rounded margin as options so if i say maintain price now here we’re looking at price two three and four maintain price we can see that maintain price is going to keep our our inclusive price the same but it’s going to affect our margin so here for instance we’re going from 62.7 three percent down to fifty six point three eight percent if we did a maintain margin what will notice is our price inc changes but our

margin stays the same or markup you feel that way I’m configured if we do round margin what we’re going to notice is that our price has changed and applied our pricing rule so it’s gone to forty nine ninety five and our margin has changed or markup this is a concept called margin cream this is where your rounded price and your and your marginal markup both increase if this happens a number of times in quick succession or in succession without a reviewer or correction you can find that your margin will continually keep creeping of marginal markup will creep up higher and higher which could end up pushing your sell price into an uncompetitive rain so you do need to make sure that you monitor the marginal markup if you’re implementing this to make sure that you don’t end up with a snowball effect and end up with margin creep that is beyond what you were expecting now you can monitor this obviously in this screen here where you can see what margin you had what your new margin will be but it will only show you your your current margin and what your new margin will be you can’t see previous margins in here so just to recap if you select maintain price your price your inclusive price will stay the same your marginal markup will change if you select maintain margin your marginal markup will stay the same your price will change if you select rounded margin your price and marginal markup will change There is obviously occasional exceptions where you may end up with a price that is exactly what the rounded price will be but barring those you will get an effect of price and marginal markup changing so once we’re happy with which one we want we can just click on OK and that will apply the price change the same as it would any other time so we have a look at another product here and we’re going to do a cost change for this to one hundred and fifty dollars so what we can see here again is with the maintain margin our margins have stayed the same however our prices have changed maintain price our prices have stayed the same but our margins have changed with rounded margin we now have prices that ended nice 309 double 0 to 99 but our margins have slightly changed so here at the moment we’d end up with like 30 681 and to 9692 now we’re anything with 30 9 mm to 99 double 0 so we’re more happy with that we can just click on ok and that’s applied it for us so that is applying and using the price grounding system now there is one configuration that has been added in the ordering configuration in your price change screen too deep a default to where it previously only had maintained prices maintain margins you do now have the rounded margins as an option to set your default to so just to recap with a some helpful hints you can set which menu option the price range change screen defaults to as we just saw you do need to watch out for margin creep or markup creep when you’re using the price rounding now how much that is going to affect your will that will be determined by yourself but it is something just to be mindful of when you when you were looking to implement this and just to keep in mind and finally I highly recommend planning out our having it structured on a bit of paper or in a spreadsheet how you want your price rounding to work before you start setting it up the more defined you have your set of rules the quicker and easier it will be till we’ve set them up and get them working for you but as you saw in this example today as soon as you get them set up and keyed in you can start using them so just to finish this up thank you very much for joining us if

you have any further questions or would like any more information about the price grounding system please feel free to contact a CR or one of the trainers here we’re always happy to help and would be more than happy to take you through anything further of course if you have any other questions about the ACL system please feel free to contact the training team otherwise if you’ve got a general question you may want to talk to your account manager Matt connive who’s always happy to have a chat to anybody thank you very much everybody for attending and hope you have a great afternoon