MENU 5 PRICING

1. MENU 5 PRICING By: Steve Moeller & Ron Stogsdill, Sr.

2. GOALS • Establish an efficient pricing matrix to help increase gross profit • List Price Multiplier • Change “Thinking” to List Less on most products

3. GOALS • Mark-up from Cost (branch or direct) • Limited Use – Commodities • If Cost Goes Down, So Does Sell • Fixed Price (Menu-5.3) • Labor Intensive to Maintain (review each qtr) • Lost Margin Opportunity when costs going up • Use only when there is no alternative

4. GOALS • Identify Daily, Weekly, Monthly, Quarterly, Yearly (DWMQY) pricing related tasks • Establish Pricing Best Practices

5. Parameters & Terminology • Contracts vs. Programs • Stock status “P” & “C” • EDLP, {vend}-1, {vend}-2 • List Price Multiplier (LPM) • Matrix (5.15)

6. Menu 5

7. Auto Update Pricing Menu

8. Price Quantity Maintenance15. Pricing Matrix

9. Price Quantity Maintenance15. Pricing Matrix

10. Price Quantity Maintenance15. Pricing Matrix DPOINT - Points to a bucket:CPOINT - Points to a cost: 0 = Each Price  0 = Each Price01 = First bucket                               -1 = Branch Cost02 = Second bucket etc...                -2 = Average Cost06 = Last bucket                               -3 = Direct Cost 23 = LIST PRICE If a matrix price is used, a code will display in the lower left hand corner as follows:  CP – Customer, Product    PP – Program, Product     SP - Cust.Class, Product CG – Customer, Category  PG – Program, Category  SG - Cust.Class, Category CC – Customer, Class       PC – Program, Class        SC - Cust.Class, Prod.Class CT – Customer, Type        PT – Program, Type         ST - Cust.Class, Prod.Type CV – Customer, Vendor     PV – Program, Vendor     SV - Cust.Class, Vendor Note: Program name will also display (i.e. PP*CON-1)

11. Price Quantity Maintenance15. Pricing Matrix • DPOINT - Points to a bucket: 0 = customer each price 23 = product list price (same for all) • “S”ell option – S1, S2, SA, SB • “V”endor option (product master vendor) • ABC is active (product detail ABC)

12. Menu-35.3 Pricing Parameter

13. Menu-35.3 Pricing Parameter Menu 35.3.7 – PM.21.Price Matrix Enter a ‘Y’ in this field to use the pricing from Menu 5.15 in all cases for all products, even if it’s higher than the each price. 

14. To Do List • Pricing Manager & lockdowns • Eliminate price pointers (5.22) • Eliminate discounts (5.27) • Eliminate fixed customer contracts • Establish EDLP programs • Quarterly LPM review • Quarterly customer review

15. Daily Pricing Tasks • EOD email 01-175 contracts with cost change • EOD email 01-181 products with cost change • EOD email 01-125 new products transmission • EOD email 01-155 customer with no LPM • Event Notification 35.19.4 price overrides • Event Notification 35.19.2 price hold • Event Notification 35.19.3 sold below cost • JEN Price bulletins

16. Weekly/Monthly Pricing Tasks • JEN upcoming price changes • 5.23 FT into folder and review, delete programs that have expired • 5.35 FT into folder, review & save • have company meeting and discuss pricing • set goals to reduce the number of overrides

17. Quarterly/Yearly Pricing Tasks • Customer review by salesman • Review customer classes • Review programs • Review List Price Multipliers • Review all customers with programs

18. List Price Parameters Menu 35.23 – ABC Parameters RANKING "A" (SALES.12MO) 30000.00 RANKING "B" (SALES.12MO) 12000.00 RANKING "C" (SALES.12MO) 6000.00 The ABC ranking re-calculates every EOM Do you want to apply these new parameters now (Y***/<enter>)?

19. List Price Multipliers • Customer ABC Report (12.2.40) – enter ALL, ALL, ALL for all stores combined • Menu-11.12. Customer Activity Report – ABC, LPM, APD, etc • List Price Multiplier Upload (5.20.5)

20. Questions & Answers