The Pricing Rule module, located in the Sales group, allows you to markup or markdown your product prices for customers. Pricing rules may apply to specific customers, customer groups, products, and product trees. The pricing module is a convenient way to quickly and accurately create price adjustments for your products.
Save saves any changes made to the pricing rule.
Delete deletes the pricing rule.
Duplicate creates a copy of the pricing rule.
Print sends the default module report to the printer.
How To opens this article in a web browser.
Refresh reloads whatever is currently open in the module.
Create a new pricing rule
- Click the New button on the module toolbar.
- Enter a name and description for the new pricing rule.
- Select which customers or customer groups the pricing rule should be applied to.
- Select which products or product trees the pricing rule should be applied to.
- Select the Adjustment Type and a Price/Cost Value from the lists below, and then click Save.
Pricing rules are created by selecting an adjustment type and selecting the price/cost value that will be used for the adjustment. Below is a list of the available Adjustment types, as well as the Price/Cost values that can be used for those adjustments.
- Markdown - the selected value will be decreased by the specified percentage.
For example, when applying a 50% markdown to a value of $100, the new price would be $50.
- Markup - the selected value will be increased by the specified percentage.
For example, when applying a 50% markup to a value of $100, the new price would be $150. There is also an option in the Sales Order module options to show the markup on the sales order. This allows the markup to be monitored and adjusted for each item.
- Margin - the selected value will be increased to provide the specified margin.
For example, to have a 50% margin on a value of $100 the new price would be $200.
- Percent - the new price will be a set percentage of the specified value.
For example, when adjusting to 50% of a $100 value, the new price would be $50.
- Amount - the new price will be the selected value +/- the specified dollar value
For example, when applying a +$25 adjustment to a $100 value, the new price would be $125.
- Fixed Price - the new price will equal the fixed dollar value that is entered.
- Average Cost - The average value of inventory that is in stock.
This value can be seen on the General tab of the Inventory module.
- Default Vendor’s Cost - If the part has a default vendor, this is the amount the default vendor charges for the part.
This value can be seen on the Vendors tab of the Part module.
- Last Cost - This is the most recent cost of this item from any vendor.
This value can be seen on the Vendors tab of the Part module.
- List Price - The List Price is the Tier 2 price or the product price if no Tier 2 rules have been created.
See Pricing tiers for more information.
- Product Price - This is the product price as set on the General tab of the Product module.
- Standard Cost - This is the standard cost as defined on the Details tab of the Part module.
- Customer Last Price - The customer's last price can be viewed and edited on the Parts tab of the Customer module.
The specific dollar amounts of these price/cost values can also be seen by clicking the Details tab of a saved pricing rule. Right-click the column header and select which values to display. The values will be shown for all of the products that the pricing rule applies to.
Pricing rules can also be created using a CSV Import.
Edit, delete, or inactivate a pricing rule
- To edit a pricing rule, double-click the pricing rule in the search pane, make any changes, and then click the Save button located in the module toolbar.
- To delete a pricing rule, double-click the pricing rule in the search pane and then click the Delete button located in the module toolbar.
- A pricing rule cannot be deleted if it is in use by other modules. In this case, a pricing rule can be inactivated by unchecking the Active checkbox and then clicking the Save button in the module toolbar. To view an inactive pricing rule, click the Advanced Search button and uncheck the Active checkbox.
Duplicate a pricing rule
You may duplicate a Pricing Rule by clicking the Duplicate button located on the module toolbar. A confirmation box will be displayed asking if you are sure you wish to duplicate this pricing rule. Choose Yes. Fishbowl will immediately display a dialog box informing you of the pricing rule that was duplicated. Whenever a pricing rule is duplicated it will always be created as a 'Copy of ___'. After the rule is created you may change or edit any fields in the Main Screen if necessary. Make sure to save your changes by selecting the Save button on the module toolbar.
The Adjust Prices wizard allows the user to update the Product Price within the Product module according to an existing Pricing Rule. For example, if you wanted to update all of the product prices to reflect a 50% markup from their average cost, you could do so through the Adjust Prices wizard.
To adjust the price of a product affiliated with a Pricing Rule, click the Adjust Prices button located on the module toolbar of the Pricing Rule module. The Adjust Prices wizard will be displayed. Choose the pricing rule from the dropdown that applies to the products that will be adjusted and then click Next.
Step 2 of the Adjust Prices wizard will provide a list of all the products to be affected. If your pricing rule specified for all products to receive a 50% markup from their average cost, then the Adjust Prices wizard will indeed affect the prices of all products. Likewise, if your pricing rule only applied to a Product Tree, then only the products within that tree will be adjusted. After verifying the new prices in step 2, choose Finish to complete the wizard. The product prices will be adjusted immediately.
- Note: If pricing rules are created exclusively to adjust the prices through the Adjust Prices wizard, go to the Advanced tab of the Pricing Rule module and uncheck Apply this rule as products are added to a Sales Order.
Applying pricing rules
You have a Customer Group labeled Valued Customers, and set a pricing rule to state that all of your Valued Customers receive a 20% discount (markdown) off the product price of all items. With the information shown below, each Valued Customer to purchase the super flash handlebars would receive $2.80 off their purchase, and $11.20 would show in blue on the Sales Order to confirm it has been modified from the List Price.
|Super Flash Handlebars||20% Product Price Markdown||$14.00||-$2.80||$11.20|
Your company desires to have a 100% markup on a certain product. Below the pricing rule has been established for Heavy Duty Water Bottles to be marked up 100% relative to the Average Cost. With the information shown below customers would be charged a markup of $3.00. The new price of $6.00 would show in blue on the Sales Order to confirm this price has been modified from the List Price.
|Item||Type||Average Cost||Markup||New Price|
|Heavy Duty Water Bottles||100% Average Cost Markup||$3.00||$3.00||$6.00|
NOTE: There is an option in the Sales Order module options to show the markup on the sales order. This allows the markup to be monitored and adjusted for each item.
Pricing rule precedence
Since you are not limited in the number of pricing rules that may be created, several rules may apply for the same customer or product (for example, a customer may exist in more than one Customer Group pricing rule, etc.) In cases such as these, the following rules apply:
- Pricing Rules have a precedence in the following order:
- Customer Specific Pricing Rules
- Customer-Group Pricing Rules
- Fixed Pricing Rules
- If multiple pricing rules exist for a product then the higher/lower (based upon the Pricing Rule Module Options) calculated price will be the price given on the Sales Order.
- Pricing Rules referencing nodes lower in the Product Tree take precedence over rules assigned to higher nodes of the tree.
- When two or more pricing rules are deemed valid, but each rule applies to a distinct Product Tree branch, rule 2 will be used to determine which rule to apply.
NOTE: When a price comes down from a previous tier it is just the price; not the pricing rule. So, for instance, if the winning rule from Tier 2 was a Customer Specific pricing rule and there is a Customer-Group Pricing Rule in Tier 3, the Customer-Group Pricing Rule would take precedence because the Tier 2 price is simply a price. It does not come down with the precedence of a Customer Specific Pricing Rule.
Within Fishbowl, pricing tiers are available to allow multiple pricing rules to apply to the same product, customer, etc. For example, a company could set a Tier 2 pricing rule to mark up their products 100% from its average cost, and set another Tier 3 pricing rule to provide a temporary holiday discount off the Tier 2 pricing rule. In the Pricing Rule module options you have the option of choosing whether Tier 2 and Tier 3 look for the highest or lowest price from the previous tier. The following information explains how Fishbowl uses Pricing Tiers:
- Tier 1: Tier 1 will always be the Product Price. If no Tier 2 rules are defined, then the List Price will also be the Tier 1 price.
- Tier 2: Tier 2 will always be the List Price. By default, Tier 2 will look for the highest price.
- Tier 3: Tier 3 will be the price placed on the Sales Order. By default, Tier 3 will look for the lowest price.
3 tier pricing rules
Your company has a pair of bike handlebars that cost you $5.00. Your Product Price is set to $8.00 (The Tier 1 price will always be the Product Price). However, you have pricing rules set for this product. The following represents the product's Tier 1 information:
For this example our Module Options state for Tier 2 to look for the highest price. Below you can see that this product has two Tier 2 pricing rules resulting in $10.00 and $7.50. Our price from Tier 1 will be brought down to be included with these prices, making the price options $8.00, $10.00, or $7.50. Because the module options for Tier 2 is set to take the highest price, $10.00 is determined to be the Tier 2 price. The Tier 2 price is considered to be the List Price.
|Tier 2||Pricing Rules||Pricing Rule Outcome||Tier 2 Pricings|
|100% > Average Cost||$10.00|
|50%> Average Cost||$7.50 →|| |
*NOTE* The List Price is always the price that was brought down from Tier 2. If no Tier 2 rules are defined, then the List Price is simply the Tier 1 price (the Product Price). If Tier 3 establishes a price different than the List Price it will be displayed in blue while creating the Sales Order.
Your company now wants to have a 10% off List Price Labor Day Weekend Sale. A Tier 3 pricing rule would be created giving 10% off the List Price. The Module Option is set to look for the Lowest price from Tier 3. The highest price from Tier 2 will be brought down to be included in our Tier 3 prices, making our price options $10.00 and $9.00. Due to our Module Options set to take the lowest price, $9.00 will be the price placed on our Sales Order and will show in blue because it is different from the List Price established in Tier 2.
|Tier 3||Pricing Rules|
|10% < List Price||$9.00 →|| |
Give VIP customers a 10% discount off the list price
Your company has a number of VIP customers who regularly purchase items from you. By creating a discount and assigning it to a Customer Group, you may efficiently ensure that all of your VIP's are well taken care of (customers must already be assigned to a Customer Group).
- Choose the New icon from the module toolbar.
- Enter a Name and Description for your Pricing Rule. For example, a name could be "VIP Customer Discount" with a description of "VIP customers receive a 10% discount off the List Price".
- Beneath the Apply To Customers section, choose the Customer Group option. From here, you may choose your Customer Group from the given drop down menu (all customer groups must already be created through the Customer module).
- It is likely that a VIP Customer Group would receive a discount off all items, so beneath the Apply to Products section, choose the All Products option.
- Beneath Apply Price Adjustment choose to Markdown 10% relative to the List Price.
- Choose Save from the module toolbar to save your changes.
Give a customer a fixed product price
Perhaps your company has a specific customer that receives a fixed price for a product. This may be a VIP customer, or perhaps they purchased an item with a guarantee to always receive an agreed upon price. For whatever reason, this customer will always receive the same price for a product. For Fishbowl to recognize a fixed price for this customer you must first create a Pricing Rule.
- Select the New icon from the module toolbar.
- Enter a Name and Description for your Pricing Rules. For example, a name could be "Fix-It Bike Shop" with a description of "Set Product Price for Bike BB2001".
- Choose the Customer to whom this pricing rule will apply beneath the Apply To Customer section. Any customer shown in the given drop down menu will have already been created through the Customer module
- Due to the fact that this Pricing Rule will apply to only one product, choose the Product option beneath the Apply To Products section. Then choose the product this pricing rule applies to by selecting the product from the drop down menu (any product shown in this menu has already been created via the Product module).
- Beneath the Apply Price Adjustment section, choose the Fixed Price option and enter the fixed amount of this product for the customer.
- Choose the Save option from the module toolbar to save your changes.
Markup prices 50% higher than their average cost
Suppose your company has the intention of selling all your products for 50% more than their Average Cost. Use the following steps to create a pricing rule to define this.
- Click the New button located on the module toolbar.
- Enter a Name and Description for your Pricing Rule (for example, 50% markup from Average Cost).
- Beneath Apply to Customers choose "Everyone".
- Since your company desires to sell all of your products at a 50% increase, choose to apply this rule to All Products.
- Beneath the Apply Price Adjustment section, choose Markup.
- Next to 'Markup', enter 50% relative to the Average Cost.
- Click the Save button on the module toolbar to save the changes.
- For additional advanced settings, choose the Advanced tab where you may assign this pricing rule to specific dates or quantities.
To create a new Pricing Rule, click the New button on the module toolbar. This will create a blank pricing rule on the main screen for you to enter the following information:
First, enter the Name and Description of your new pricing rule. Next, beneath the Apply to Customers(s) section, choose whether this Pricing Rule applies to Everyone, a specific Customer, or a Customer Group.
Step two is to choose whether this rule applies to all Products, a single Product, or a Product Tree. If your rule applies to a specific product or product tree choose the appropriate items from the given drop-down menu.
Next, beneath the Apply Price Adjustment section you may choose the price adjustment for this rule. Your price adjustment options include: Markdown, Markup, Margin, Percent, Amount, or Fixed Price. The default percentage will be shown as 10%; however you may modify this percentage by entering your own number into the given field. Next, you may choose whether this rule is relative to the Product Price (price of the product within the Product Module), Average Cost, Default Vendor Cost, Last Cost, List Price (price on the Sales Order after it has been modified by pricing rules in other tiers), or Standard Price. If you choose a flat rate, choose the Fixed Rate option and enter the appropriate amount in the given space.
When creating a New Pricing Rule, you have the option to offer advanced features such as Rounding. If desired, your company may choose to have all products round to the nearest $0.99.
You may also give a Date or time frame for when this rule will be valid; or if your pricing rule is only valid when a customer purchases a certain quantity amount, then you may specify a Minimum and Maximum amount beneath the Apply to Quantities section.
Pricing Rules may be set as Tier 2 or Tier 3 level pricing. By default, Tier 2 will look for the highest pricing level, while Tier 3 will look for the lowest pricing level. These options may be changed through the Pricing Rule module options. For detailed information on Tier pricing, see 3 tier pricing rules.
Fishbowl will default to apply your new pricing rule as items are added to a sales order. If you do not wish for this to occur, simply deselect the checkbox that states, Apply This Rule as Products are Added to the Sales Order.
After all of the necessary information has been added to the Pricing Rule, click the Save icon located on the module toolbar to save your changes. Your pricing rule will be effective immediately to Sales Orders placed from this point onward.
The Details tab provides a Summary of Information regarding the pricing rule. Here you can view the day the rule was created, last modified, and who modified it. The Details tab will also provide a summary of which customer the pricing rule has been set for, which products it applies to, and the dates and quantities (if any) associated with this rule.
Lastly, the Details tab will provide a list of all the products this pricing rule applies to. From here you can view the List Price with the New Price being applied. Prices may not be edited here; However, the Product Price may be edited through the Adjust prices wizard.
Some aspects of the Pricing Rule module can be customized by opening the module, clicking the Tools menu, and then selecting Module Options.
- Tier 2 looks for the...
- This option determines which pricing rule will be used when there are multiple Tier 2 pricing rules. Options include Highest Price, and Lowest Price.
- Tier 3 looks for the...
- This option determines which pricing rule will be used when there are multiple Tier 3 pricing rules. Options include Highest Price, and Lowest Price.
- Don't allow calculated prices to be less than...
- This option prevents the calculated price from going below a specified level. Options include Average Cost, Default Vendor's Cost, Last Cost, List Price, Product Price, or Standard Cost.
NOTE: For tiered pricing rule examples, see 3 tier pricing rules.