(1.) First, navigate to the Products module and click the “Add New Record” button near the top-left corner of the screen.
(2.) Next, use the “Category Name” dropdown to assign the product to a category, and then give the product a name in the “Item Title” text field.
(3.) Now on the “Pricing” tab, use the “Price Matrix Type” dropdown to select Price Bands.
(4.) Now you can nominate a “Cost For 1 ($)” value (as well as a markup and a “Selling Price For 1 ($)” value) for your product.
Looking at the example above, we have set this up so that our first quantity breakdown (for orders with a quantity of 1 to 20) has a Cost For 1 ($) of $5 and a Selling Price For 1 ($) of $9.25 – which is a markup of 85%.
Likewise, we are giving our customers a quantity discount if they order between quantities 21 to 50 and 51 to 100, where there is a slightly lower markup and therefore a slightly lower Selling Price For 1 ($) if they order more at a time.
(5.) Taking our pricing structure one step further, we have added a “Decoration” cost onto our product as well.
We added only one extra cost here for “branding” (i.e., if the customer wants a logo printed on their water bottles) but we could have added up to six additional costs if necessary.
For this particular decoration cost, it has a Setup Cost of $5 and a Per Item Cost of $2.
If you would like to see the process of using this product in an estimate, please see our guide Creating a Product Catalogue Estimate with the “Price Bands” Pricing Type.
