Review of List, Group and Fixed Pricing Methods
This will be an overview of the basics of pricing in Prism. This information is intended to be educational and to help you enhance your understanding of the applications. Please note that it is your responsibility to use this information correctly and in accordance with your company's chosen pricing method.
List price
List price, also know as VAM or stock, is the standard item price. We like to say, "Set it to your highest sales price". We like to error on higher prices when setting this. You should be setting this in your Accounting system, likely QuickBooks or AccountMate.
- Pros:
- Simplicity: It's easy to set and manage as it involves setting a single price for each item.
- Consistency: As it ensures that there's a baseline price that can be consistently referred to.
- Higher Margins: Setting it to the highest sales price can potentially lead to higher profits.
- Cons:
- Inflexibility: Doesn't account for different customer segments or bulk purchasing which might demand different pricing.
- Overpricing Risk: May lead to lost sales if the list price is too high and competitors offer lower prices.
Group Price
Group pricing involves creating price books where you can add items and set prices within a single list, which can then be applied to multiple customers. This method overrides the list price. Additionally, it offers up to five levels of price books that can be assigned to a single customer
Below are two screenshots showing Customer maintenance, and group price maintenance.
- Pros:
- Customization: It allows for tailoring prices for different groups of customers, which can cater to bulk buyers or special customer segments.
- Efficiency: Saves time by setting prices for groups rather than individual items, simplifying pricing management.
- Marketing: Can be used strategically to offer discounts to specific customer groups, fostering loyalty.
- Cons:
- Complexity: It's More complex to manage than list pricing as it requires keeping track of various group prices.
- Potential for Error: Risk of mispricing if not carefully monitored, which can lead to discrepancies.
See the group pricing article:
Fixed pricing
This pricing overrides any other pricing set in ServQuest and only exists on that schedule. Although very convenient, it is very difficult to manage overtime and requires a report and utility to use.
- Pros:
- Specificity: Allows for very specific pricing that can be tailored to individual Schedules or special agreements.
- Override Capability: Can override other pricing methods, ensuring that the agreed-upon price is applied regardless of other factors.
- Cons:
- Management Difficulty: Harder to manage over time as it requires detailed tracking and maintenance.
- Resource Intensive: Needs reports and utilities to managed effectively, which can be resource-intensive.
- Inflexibility: Can be cumbersome to make changes.
Fixed Pricing Article:
