Using Price Levels to Maximise Profit
RFMS provides you with up to 12 price levels for all your products and services. What might you use them for?
RRP will be your full retail price with no discounts. Use this price for small jobs where no discount can be justified.
Discount levels based on metres in the job. If RRP is jobs under 7 metres, level 2 might be 7.1-15 metres; level 3 might be 15.1-25 metres and level 4 might be 25.1 metres plus. In this way you are controlling the levels of discount handed out by the sales team.
If you have a price agreement with a builder, you can have a price level reflecting that arrangement.
Similarly, you might have an arrangement with a Real Estate company or an Insurance company. You can use price levels to ensure that these clients consistently receive the agreed pricing.
If you have a policy for staff pricing, you can have a price level for that sole purpose.
If you want to put a price on a sample being loaned out, you can issue a sample docket showing that cost in the event it is not returned.
Some other points to know about price levels:
You can restrict access to price levels.
You can further restrict salespeople from entering any price other than those they have access to. If they want to vary the price, RFMS will require a management override.
Pricing is not done on a product by product basis. Through the RFMS pricing tools, you apply a formula for each price level.
You can connect a customer to their appropriate price level. If you have a price level for Bloggs Builders, you set it in their customer record and from that point on, orders and quotes will default to the correct price level.
Price levels are a powerful tool to control your pricing, and to increase your margin. Let us know if you would like some further information, or some assistance to get going with them.