Have you ever wanted a way to ensure that your Parts and Service Teams are selling parts at the correct pricing level based on the customer’s account? We have enabled this function within DealerTeam and it is handled by the Pricing Strategy object.
Let’s start at the very beginning, here is how a Pricing Strategy is set up:
- Price Level : This is the name of the Pricing Strategy, Think through your naming convention, We recommend a descriptive Name, Such as “Retail” or “List with 10% Discount”
- Method : There are 5 supported options to choose from, These 5 will correspond to the Price on the Part record. They will act as the base calculation that the strategy uses.
- Parts Variable Amount : This will be the percentage of adjustment from the Method you selected. In order to pass a direct value enter 0% here and it will assign the Method as the value.
- Formula Operand (Parts) : This is either a Plus or a Minus. The logic will dictate that the Method times the Parts Variable as a Discount or a Multiplier.
- Comments : This is an open text field for the Admin Team to define any additional info about the Pricing Strategy
- Order : This is 999 by default, This will control the order of display in the page layout, the lower the number the higher in the results pane it will show up.
- Active : This is a Boolean field that will either allow or restrict the use of the Pricing Strategy
- Default : Only one Pricing Strategy should be marked as the Default for any given org, We will delve more into how the Default function works through the rest of this article.
Creation of a Default Retail Pricing Strategy
Now we're familiar with a New Pricing Strategy, let’s fill in some blanks and see what we have to work with.
So the expectation will be that any Parts Sold on a Service Repair Order or a Parts Invoice with this assigned Pricing Strategy would sell at the List Price as defined on the Part Object with No Markup or Discount. This will also be the First Pricing Strategy to show up on the list view. Pretty simple right? That was the intention.
Default setup is done at this point, but for those that would like to dig a little deeper and add some controls around Pricing in the Service and Parts side of the house keep reading.
Create a Discounted Pricing Strategy
So we have established how to set a Default strategy that will sell at List price, now let's create one for a top level account that will automatically give a 15% discount to any parts sold.
Notice this Pricing Strategy is not set to default, and that the Formula Operand field is set to a negative value. This will allow us to sell any parts with a 15% discount from List on any Parts Sold.
If you think through the ways you could customize this it makes it a very powerful tool. For example, If you sell parts to a Reseller account you can leverage the Jobber Price field from the part and sell parts at that level. Or use a MAP ( Minimum Advertised Price ) to ensure that your great customers get the pricing they deserve.
Learn how to Apply a Pricing Strategy to a Specific Account