Merchandising agrees with the vendor on a unit cost that is based upon a locked/fixed amount or fluctuates with the cost of the primary metal component of the item.
For any item with vendor unit cost that fluctuate with the cost of the primary metal component of the item
A standard, system wide metal cost is set, e.g., $2,500 Gold, Purchase Order Metal cost, and the Purchase Order Unit Cost is set for the item base upon this Purchase Order Metal cost.
At receiving, the unit cost used to adjust average cost is based upon a formula to adjust the Purchase Order Unit cost by the difference in the actual primary metal cost at receiving versus the Purchase Order Metal Cost, e.g., the unit cost used is lower that the Purchase Order Unit cost when the actual primary metal cost is lower than the purchase order
For any item with a locked/fixed unit cost, the Purchase Order Unit cost is determined with a metal type of NA but remains as Purchase Order Unit cost
Selling Prices:
There exist four levels of pricing for a product
Retail
The current retail price is printed on sales tickets when they are printed.
The Purchase Order Unit cost is adjusted for the difference between Purchase Order Metal Cost and Retail Metal Cost.
The adjusted cost is then marked up within a range of costs and markup rates at the department, class or sub-class level.
Advertised
Based upon a UPL establishes an allowed selling price during established promotional periods.
The advertised price is explicitly set in the UPL
POS controls are in place to control/audit selling an item for more or less than the current advertised price.
Trunk
Based upon a UPL establishes an allowed selling price during established promotional periods in specific locations.
The trunk price is explicitly set in the UPL along with adjusted SPIFFS.
Trunk UPLs also support automated transfer of units from Trunk inventory locations to the actual selling location.
Black Book (Clearance in Multidev)
Based upon a UPL establishes an allowed selling price when the item may not be Advertised.
The clearance price is explicitly set in the UPL along with adjusted SPIFFS.
POS controls are in place to allow unaudited selling of a trunk item for up to 10% less (previously referred to as the Black Book Price) than the UPL price (previously referred to as the Black Book Ticket Price).
Minimum Standard Selling Price
When an item is NOT included in an active UPL for Advertised, Trunk or Black Book, established an allowed lowest selling price.
The minimum standard selling price (Multidev refers to as a floor price) is a factor based an adjusted Purchase Order Unit cost.
The Purchase Order Unit cost is adjusted for the difference between Purchase Order Metal Cost and Retail Metal Cost.
The adjusted cost is then marked up within a range of costs and markup rates at the department, class or sub-class level.
Desired Behaviors
New Items - when new items are entered, Retail and Minimum Standard Selling Prices are set based upon previously documented formulas.
Existing Items
When the Purchase Order Unit Cost changes OR markups change, Minimum Standard Selling Prices must be updated.
Ad-hoc/one-off/SF plug-in for testing of new markups or changes in cost ranges at the department, class, sub-class level.
System driven updates for all Purchase Order Unit Cost changes and/or changes in markups or cost ranges; a polling event was suggested to reduce negative impact on system during production hours.
When the Retail Metal Cost changes OR markups change, Retail prices must be updated.
Ad-hoc/one-off/SF plug-in for testing of new markups at the department, class, sub-class level.
System driven updates for all Retail Metal Cost changes applied selectively at the class level; a polling event was suggested to reduce negative impact on system during production hours.
Last Updated 9/30/2024 8:54 AM (awr) Page 2 of
o:\misgrp\multidev\implementation documentation\product pricing.docx