Introduction To Item Price

Item Price, and Price List, are interconnected components that work together to manage and optimize product pricing.

Item Price

Item Price refers to the specific cost assigned to an item within a Price List. When you create an Item Price, you link it to a Price List, categorizing it under your chosen pricing strategy. Item price can include:

Selling Price: 

The price at which the item is sold to customers.

Buying Price: 

The cost at which the item is purchased from suppliers.

Let us try to understand the concept of an Item Price with the help of an example. We have created an Item. The details are as under:

The screenshot above depicts that there are 2 Price Lists defined for the same item (WB-1001: New York Price List and Houston  Price List.

Click on the Item Name to open the Item Detail Screen. 

The screenshot below depicts the Selling Price List for the New York Store and the Rate. 

The screenshot below depicts the Selling Price List for the Houston Store and the Rate. 

You sell this item (WB-1001) in both the stores : New York Store and Houston Store. Since these are 2 different regions have created two separate Price Lists: New York Price List and Houston  Price List.

• For the New York Price List, you set the price of "WB-1001" at $225.

• For the Houston Price List, you set the price of "WB-1001" at $180.

You then link these prices to their respective Price Lists, to ensure that when a sale is made at the New York Store, the price applied is $225, and for Houston Store sales, the price is $180.

Price List

A Price List functions like a container for Item Prices, which define the specific selling or buying rate for an item. You can create different pricing structures for your items based on various factors such as Currency, Region, or Customers.

Linking Item Price to a Price List

Linking an Item Price to a Price List is a crucial step in managing your pricing strategy. When you link an Item Price to a Price List, you are associating a specific price for an item with a particular pricing strategy defined by the Price List. This connection ensures that the item is priced according to the rules and conditions set in the Price List.

Steps to Link Item Price to a Price List

The steps to link an Item Price to a Price List are explained below:

Create or Select a Price List: 

Start by creating a new Price List or selecting an existing one. This Price List will define the overall pricing strategy, such as currency, region, or customer-specific pricing.

Define Item Prices: 

For each item, determine the specific price you want to assign. This can include various parameters like unit of measurement, packing unit, minimum quantity, etc.

Link the Item Price: 

Assign the defined Item Price to the chosen Price List. This involves specifying the item, the price, and any additional conditions (e.g., validity period, batch).

Save and Apply: 

Save the changes to ensure that the Item Price is now part of the Price List. This linked price will be used in transactions where the Price List is applied.

Example Scenario

Imagine you have an item (WB-1001)  that you sell in your New York Store and Houston Store. Since these are 2 different regions you have created two Price Lists: New York Price List and Houston  Price List.

• For the New York Price List, you set the price of "WB-1001" at $225.

• For the Houston Price List, you set the price of "WB-1001" at $180.

By linking these prices to their respective Price Lists, you ensure that when a sale is made at the New York Store, the price applied is $225, and for Houston Store sales, the price is $180.

Attaching a Price List to a Customer in iVendNext 

If you have multiple Price Lists, you can select a Price List and tag it to a Customer (so that it is auto-selected). Your Item Prices will automatically be updated from the Price List.

Impact of Linking a Price List on Transactions

When a transaction is processed, the system will refer to the linked Price List to determine the applicable Item Price. This ensures that the pricing strategy is consistently applied, whether it's a sale, purchase, or any other transaction involving the item.

By linking Item Prices to Price Lists, businesses can effectively manage complex pricing strategies, ensuring accurate and consistent pricing across different scenarios. 

Store Specific Pricing

Store Specific Pricing refers to the ability to set different prices for the same item across various store locations. This feature is particularly useful for businesses with multiple outlets, allowing them to adjust prices based on factors like local market conditions, competition, and cost variations. For example, a retail chain might have different pricing for a product in a high-demand urban store compared to a rural location where demand is lower. This flexibility helps businesses optimize their pricing strategy to maximize profits and remain competitive in different markets.

Correlation between Item Price and Price List 

Item Price, and Price List, are interconnected components that work together to manage and optimize product pricing. The section below explains how they relate to each other:

Price List: This acts as a container or framework that holds various item prices. It defines the overall pricing strategy and can be customized based on different criteria like currency, region, or customer type.

Item Price: This is the specific price assigned to an individual item within a Price List. Each item can have multiple prices depending on the different Price Lists it is associated with.

Summary

In summary, the Price List provides the structure and criteria for setting and managing Item Prices, allowing for flexible and dynamic pricing strategies tailored to various business needs.