Before getting started with creating part markup contracts, it will help to
have an understanding of the different costing and pricing methods that can be
used in EMDECS.
When you sell parts through a counter sale or a repair order in EMDECS, the
part sale prices are based either on a markup of the part purchase cost or
using retail prices (either a fixed retail price or a markup/discount of the retail
price). The most common choice is to markup based on cost, as this ensures
your part sales continue to be profitable when part purchase costs increase
over time, and does not require manually maintaining retail prices for your
parts in EMDECS.
Your EMDECS system will be set with a default costing method for new
parts. If you need to change your default costing method, please email us at help@brightorder.com, or call us at 1-888-205-8817, and ask to change your COSTINGMETHOD system
parameter to the appropriate default for your business. Individual parts
can be set to a different costing method from the part settings screen (Parts menu → Part Master → search for and click on a part number and
select the Costs & Pricing tab).
The Retail Markup % and Retail Price fields are only applicable when a discount contract is used (this is explained
further in the Parts Contract Wizard section). Entering
a retail price or a retail markup percentage will not affect the price of parts
when a cost markup contract is used. If you are using discount contracts,
the discount is applied to the retail price. If you select the "Use
Retail Markup %" option, this will add a markup on top of the retail price
instead of discounting the retail price.
The Things To Do list on the left-hand side of the Part
Master screen contains tools for bulk changes to part cost and pricing
settings. If you need to make bulk changes to the costing method of parts
or groups of parts in EMDECS, click on the Change Costing Method In
Bulk link.
Using the filters at the top of the screen, you can select From and To part
numbers to generate an alphabetic listing of parts. You can also narrow
down your results by product group or markup group. There are also radio
buttons for selecting active parts and stock parts. If you leave all the
fields blank, the system will generate a list of all of your parts. Once
you have selected your search criteria, click the Refresh button. This will generate a list of parts to be updated. To
perform the bulk change, select a New Costing Method from the
drop-down list and click Apply .
If you use standard costs to markup part prices, the Monitor & Update
Standard Costs tool can be used to change standard costs to equal the current
last purchase cost. To access this tool. click on Monitor &
Update Standard Costs under the Things To Do List.
Click on the Generate List of Parts button
Enter the appropriate inventory warehouse at the top of the screen, select a
radio button to generate a list of parts with a last purchase cost that is
greater than or less than the current standard cost, then enter an amount or
percent under variance before clicking Generate .
A list of parts will be generated and displayed. Use the Select
All, De-select All, and Select check boxes to select which part prices to modify, then click Update
Standard Costs at the bottom of the screen to change the standard
price to be equal to your last purchase cost for the selected parts.
If you sell parts based on retail prices, you need to decide whether you
want your retail prices to be fixed or based on a markup of the retail
price.
If you use fixed pricing, parts will be sold based on a discount of the
retail price. For example, you could create a discount contract of 0% to
sell at the retail price, or have a discount of 20% to sell to your preferred
customers at 20% off the retail price. Alternatively, if you want to add
a markup on top of the retail price, then you can use a retail markup (this
should not be confused with the markup option in the parts contract wizard
explained in the Parts Contract Wizard section).
The fixed vs. markup behaviour is controlled by the "retail price based
on" setting for each of your parts. If you need to change the default
setting for new parts created in EMDECS, please contact our customer experience
team to change your RETAILPRICEBASE system parameter to either fixed or markup.
This setting can be changed in bulk for existing parts by opening the Parts menu -> Part Master → then click on the Change
Retail Price Based On link from the Things To Do list
on the left-hand side.
Click on Generate List of Parts .
Before generating a list of parts, the list can be narrowed down by product
group, vendor, active status, and stock status. Leave the fields blank to
generate a list of all parts in your EMDECS system. Click the Generate button to generate a list of matching parts.
Using the Select All , De-select All , and Select check boxes, ensure there is a check next to the parts that need the retail
price base changed.
At the bottom of the screen, select Set Retail Price To Be Fixed (for fixed pricing based on the discount percentage) or Set Retail
Price To Be Markup (to have parts pricing set using a markup of the
retail price). Click Change to update the price base.
If you use a discount contract and maintain retail prices for parts, retail
prices can be changed in bulk, based on a percentage, using the Change
Retail Prices in Bulk screen.
To access this tool, open the Parts menu → Part
Master → then click on the Change Retail Prices in Bulk link from the Things To Do list on the left-hand side.
Click on Generate List of Parts .
Before generating a list of parts, the list can be narrowed down by product
group, vendor, active status, and stock status. Leave the fields blank to
generate a list of all parts in your EMDECS system. Click the Generate button to generate a list of matching parts.
Using the Select All , De-select All , and Select check boxes, ensure there is a check next to the parts that need retail prices
adjusted.
At the bottom of the screen, select a change option ( Increase Retail
Price by % or Change Retail Markup % to ) and then
enter the appropriate percentage. Click Change to update
the retail prices or markup.
To manage part markup contracts, open the Administration menu and select Standard Codes .
Select the Customer tab at the bottom, then open the Parts
Contract tab.
The screen will be blank if you have not added any parts contracts to your
EMDECS account. To add a part markup contract, click Add .
Adding a new parts contract, as detailed above, will open the Parts Contract wizard.
Each new contract requires a code and description. Notes are optional.
Put a check next to Default to make the parts contract the
default markup for any customers in EMDECS who are not assigned a specific contract.
The following markup fields are
available:
You can enter markup percentages, or discount percentages, not both.
Click Next to continue.
The Markup by Cost Range step is optional and only
applicable when using a markup contract. You can click Next to skip this step. This is useful if you want to have different markup
rates based on the cost of the part. For example, you might want a 50%
markup on any parts that cost less than $10 while having a 35% markup on all
other parts. Note - markup by cost range cannot be used with a discount
contract.
To add cost range markups, click Add Markup .
Each time you click Add Markup , a new line will appear in
the Markup by Cost Range section. Enter the cost of the parts to be
included in the markup in the Include Up To field, the markup
%, and a core markup % if your markup should be different for core parts.
In the example pictured below, any parts that cost up to $100 will have a
40% markup:
With multiple cost range markups entered, you have the flexibility to vary
your markup rates for different part cost ranges, as pictured in the example
below. Click Next to continue.
The Markup By Markup Code screen is optional. You can click Save
/ Exit to save your new parts contract without adding markup
codes. Markup codes are useful if you need to price or markup groups of
parts differently from other parts in EMDECS. For example, if you need to
sell oil filters with a different markup percentage from other parts, this can
be accomplished by creating a markup code. If this is applicable for your
repair shop or parts counter, this section will walk you through how to create
markup codes with contain different markup groups for those parts with different
markups.
To configure markup by markup code settings, click Add .
If you have not created any markup codes in your system the Markup Code
drop-down list will be blank. Click on Add New / Manage to create your first markup code.
Each markup code can contain multiple markup groups with different
rates. Begin by adding a markup code. Click Add Markup Code .
Enter a code and description then click OK to save.
In the example pictured below, I've created a markup code named OIL.
After adding a markup code, rates need to be added. Click Add
Rate .
A markup group name can be selected from the drop-down list, or click Add
New to create a markup group name.
Enter a code name and description for the markup group.
Enter the markup percentage or discount percentage. The core fields
should be left blank, unless you want to markup or discount core parts at a
different rate. Click OK to save.
In the example pictured below, a new markup group named OIL, with a 55%
markup rate, has been added under the OIL markup code. Additional rates
can be added by clicking on Add Rate again.
For this example, two markup groups have been added under the OIL markup code: OIL with a
55% markup and SYNTHETIC with a 40% markup.
These markup group names, OIL and SYNTHETIC, need to be assigned to
individual part numbers to follow their markup rates. This is explained
below in the section titled "Assign Markup Groups to Parts."
Back on the Markup By Markup Code screen, the location and markup code must
be entered. Effective and termination dates are optional. Click Save
/ Edit to close the screen and save your changes,
You can repeat the steps above to assign additional markup codes for
different groups of parts, or for other repair shop locations. When done,
click Save / Exit to complete the parts contract wizard.
If you have created markup code assignments, the markup groups need to be
assigned to individual parts. To assign a markup group to a part, open
the Parts menu → Part Master → then search
for and click on the part number. Under the Settings tab, select the markup group from the drop-down list and click OK to save your changes.
After creating parts contracts, they need to be assigned to the appropriate
customers (unless it is your default parts contract). The default parts
contract will be used for any customers who are not set to a specific
contract. To assign a parts contract to a customer, open the Administration menu → Customer → search for and click on the customer
name, then select the appropriate parts contract from the drop-down list.
Click OK at the bottom of the screen to save your changes.
EMDECS allows for overriding the cost / price of parts. You can
override a part price by location or for all your locations. To set an
override, open the Parts menu → Part Master →
then search for and click on the part number. Under the Costs
& Pricing tab, open the Override Contract Pricing sub-tab and click Add Override .
To create an override, select a contract code and currency from the
drop-down lists and set an effective date (defaults to the current date).
The contact pricing override can be based on either Percent or Price .
If you base your override on a percent, the system will ignore any other
discount or markup settings and use the percent entered to markup the part
based on its costing method (this will ignore any discount contracts). If
you select the price option, the price you enter will be the price charged for
the part.
After filling in the override screen, click OK to save.
Overrides are displayed on the screen after clicking OK to
save:
To instead do an override by specific location, open the Override
Contract Pricing By Location tab and click Add Override .
This opens an identical override pop-up window, except it also has an option
to select a location.
After filling in the override screen, click OK to save.
An example of an override by location is pictured below:
If you set warehouse specific overrides for retail prices, these will
take effect when a discount contract is used, or if no customer contract is
specified:
Another tool EMDECS provides for setting part pricing is the Promotional
Pricing screen. Promotional Pricing was designed to be used as a tool for
creating sales promotions with reduced part prices, typically for a limited
time.
Please note: When promotional pricing is set, EMDECS will ignore all
other parts contracts and overrides unless the promotional price is higher than
the customer's existing price. The lowest price will be used. For
example, if you have a family discount contract that sells parts at cost to
your friends and family, they will continue to get their 0% markup instead of
promotional pricing that would be higher than what they currently pay.
To create a sales promotion, open the Parts menu → Part
Master → open the Promotional Pricing tab → then
click on Add Promotion .
Enter a description, effective and expiry dates. Notes are
optional. In the bottom pane, search for a location where the promotion
is taking place and click Add . Multiple locations can be
added.
Click Save / Exit at the bottom of the screen when you're
done adding locations.
To add parts to the promotion, select the promotion in the promotions list,
then search for a part, enter its promotional price, and click Add .
Repeat these steps to add additional parts to the promotion.
When you are done adding parts, you can click on the Print button at the top to print a promotional flyer. Click Activate to start the promotion (on the effective date) or click Void to cancel / void a promotion.
Example of promotion flyer printout:
There are three import tabs / screens in EMDECS for uploading or updating
parts. Open the Parts menu -> Part Master → then click on the Import Parts , Import Parts Onhands ,
or Import Parts Location Details tab. Each screen has a Download
Template button at the top and buttons to Browse for
and Import your prepared data file.
The import templates can be edited in Microsoft Excel. When adding new
parts, the bold columns are required. All other fields are
optional. Existing parts can be updated by just entering the item code
and filling in the columns that need to be updated in your EMDECS system.
The Import Parts tab is intended for uploading or updating
your parts list in EMDECS and also contains fields for updating company costs,
retail prices, setting the costing method, and item markup groups. The Import Parts On hands template can be used to upload an on hand count of
existing parts, and the Import Parts Location Details tab can
be used to upload warehouse storage locations and costs for each warehouse.
If you have multiple inventory warehouses and have cost by warehouse
enabled, warehouse specific part costs and retail prices must to be uploaded
using the parts location details template. It contains a warehouse code
field so you can upload parts with warehouse specific costs.