Let’s talk about advanced features. This includes the unit of measure and rounding. This pricing strategy is for all who need to sell a certain number of pieces per pound or number of pounds per case. We are going back to math class with this one.
Choosing Units
The unit that is chosen all depends on how the product is packaged and sold. If sold by weight, you can use ounces, pounds, kilograms or 100-g units. Selling by dry volume, use dry pints, dry quarts, liters, or 100-ml units. If sold by liquid volume, use fluid ounces, pints, quarts, gallons, liters, or 100-ml units. If the product is sold by count, the unit is each individual item in the package.
Let’s see some examples
Unit of Measure – pounds
You can break it down individually, by pack, or by case.
- 1 can of soda
- 12 pack of soda
- 1 case of soda or 24 pack
How about poultry or chicken. They can be in a case, but you can break it down by pound. Even a landscape or concrete supply distributor can do it by pounds/tons of dirt or sand.
There are so many ways and types you so just want to make sure your pricing system can handle whatever it is.
Time to Round-up
Or round down. There are many ways you can. It all depends on what you want the final cost to be based on the different pricing strategies you are using.
How about these rounding options:
- To the nearest .99
- To the nearest nickel
- Round up or round down
- Out to 5 significant digits
What can RPM do
Not trying to downplay your ERP. It is great for all the basics like Finance and Accounting, Marketing and CRM functionality, Human Resources, and Inventory.
But we could all use a little help from our fellow ISVs when it comes to things like Payroll, Warehouse Management, and Pricing. There are so many other solutions to help us grow, run our business, and automate manual processes.
Rockton Pricing Management or RPM can help:
- Track multiple units of measure by item
- Calculate per item per pound price adjustment even though you may be selling it by the case
- Convert by the unit of measure on a per item basis
- Round up or down, out to 5 digits
Conclusion
Pricing strategies and features come in all shapes and sizes. If you stuck with us and viewed all of our blogs, you can see and learn why. If not, check them out.
Pricing revenue management is not one size fits all and it’s certainly not the same for every industry.
When putting these strategies in place you need to think about not only your product or service and industry but can your ERP handle it?
