Setting up Pricing Tiers

How To - Create and Apply Price List Tiers (v2)

Why Use Pricing Tiers

Pricing Tiers are used to vary pricing markups between customers or customer "types". For instance you could set up different tiers for Commercial Customers, Retail Customers,  Government Customers, Charities, Trade Customers, Print Brokers (or agents). 
Within each tier you can also vary the markup based on
  1. the volume of area (square foot/meter) within a job
  2. the quantity of the job
  3. the cost of the job
Tiers can be used with either the RETAIL (selling) or the WHOLESALE (cost) price list. 
  1. attaching the tier to the retail price list (the selling price list) list will cause it to calculate on the Cost + the Wholesale Markup
  2. attaching the tier to the wholesale price list (the cost price list) list will cause it to calculate only the Cost 
Some customers attach the tier to the wholesale price list  to vary the "initial markup" while leaving the retail price markup free for sales people to discount or increase as needed to meet the market needs. 

Tiers on a price-list should not be used if you intend to invoice by line item. 


Setting up Pricing Tiers

Pricing Tiers are managed under the  ➥  ADMIN  ➥  PRICING ADMIN  menu.  

The pricing tier is attached to the SELL (RETAIL) PRICE LIST or the COST (WHOLESALE) PRICE LIST.  The SELL (RETAIL) and COST (WHOLESALE) price lists are what drive the pricing markups on estimates.

Step A – Creating a Pricing Tier

It is important to note that Level 9 is the tier that all new customers are set to when they are imported into IQ through the Bulk Customer Import ( Bulk Updating Customers or Suppliers)  if the tier is not set in the CSV file. 
You might want to rename this tier to "STANDARD TIER", this will rename all the tier for all customers with Tier 9 to "STANDARD TIER" 


1.  Choose the  MANAGE PRICING TIERS  option under Price Lists, the following pops up:












2.  C lick on the edit button next to LEVEL 1 

3.  Rename the Level to whatever you want the tier to be called. 






4.  You can remove excess tiers
(not Level 9 – it is the default that customers are imported into).


Step B – Creating the Pricing Tier Markups

1.  Go back to Pricing Admin and choose the PRICING TIER MARKUP option under Price Lists, the following pops up:


2.  Make sure you are under the MASTER FACTORY to see your lists.
3.  Make sure you pick the  RETAIL or WHOLESALE  price list that you want to attach your tiers to.
4.   Click the  EXPORT  to CSV to get a blank spreadsheet you can enter your tiers into:

5.  In your spreadsheet populate the information you require:



Column A – is the ID that is automatically generated by the system, and will appear if you export another price list


Column B – is the name of the PRICE LIST your created (ie. Retail or Wholesale Price list)


Column C-D – are used if you want control the price list by a value. Remember your start price cannot equal your end price – so if the end price is $500.00 the start price on the next line should be $500.0001


Column E – is the name of the TIER you created in STEP A


Column F – is the markup factor you wish to apply – 5% would be 1.05.


Column G – is the dates this will be effective (required)



A filled out spread sheet could look like this (this example has two tiers applied #1 is the Spend Tier – and will be applied first, #2 is the Black Discount – and can be applied by overriding it)



*Note: you must make sure your end price and start price are different.
You must have a start and finish date.
You must have an end quantity for your last tier (you cannot leave it blank)



Once you have completed your tier markups in your spreadsheet you can re-import the edited csv back into the system:

a.  Click the CSV Button and choose your CSV from your computer

b.  The file name will then appear

c.  Click the Import Button

                     d.  Click the  UPDATE  button which will turn blue once you finish the import.









Step C - Changing the Price List to PRICING TIERS

It is necessary to set the pricing method for the price-list you are attaching the tiers to.


Edit the Price List by going to   ➥  ADMIN  ➥  MAINTAIN PRICE LIST  then if the price list you wish to attach to (either cost or sell).
Open the pricing list, and change the Pricing method to Pricing Tier Markup:


Remove any pricing factor.

This will alter the way the price list works to now look at pricing tiers you have created. 

Step D - Linking the Price List with the Bespoke Template

The Price List is assigned to the Quote Templates (ie. Flat Sheet, Plus Cover etc), under  Factory Capabilities  ➥  Bespoke Templates.

You are only able to have ONE RETAIL / WHOLESALE price list assigned to each Quote Template. It is the PRICE LIST that generates the MARKUP on the QUOTE. However, if you want to have different markups for different customer types you can create PRICING TIERS. The PRICING TIERS are assigned to the PRICE LIST.

The Price list is assigned to the template in the Bespoke Templates:



Step E - Attaching the Price List to the Customer

The Price List has to be added to the customer file for it to work. 


Simply click on the + and you will see all the price lists available:


Step F - Setting the Pricing Tier

You will then be able to assign a  Pricing Tier is assigned to the Customer in the customer file:




Step G – Using the Tiers in a Quote

Your customer tier will automatically be added to the customer and applied to the quote. 

If you want to you can override the the TIERS within a quote:

1.  Once you have your quote created, you can click on spanner/wrench for the PRODUCTION METHOD for the job:



2.  This will bring up different options you can override for a job. In our case, we want to override the Price List to use the Pricing Tiers we created:


      



      3.  We want to apply the  Tier Override to choose the  pricing tier  based on black only printing :

             


3.  This will now apply the tier markup based on the BLACK DISCOUNT TIER  found in the PRICING TIERS 

             

You can see the 12.5% markup above is pulling from the 1.125 factor in the pricing tiers spreadsheet.

In  theory, we could create a RETAIL list called  BLACK TIERS  and have these sit separately in it,
for our example we combined both into one so that you could pick either the  SPEND TIER
(which is simply based on the spend of the quote, or you could apply the  BLACK DISCOUNT
for jobs that were all black. When the quote is updated it applies th e tier to  pricing  markup
in r etail price:




Bulk replacement of Tiers

Pricing Tier Admin – Delete option warning

When managing pricing tiers, we have added a function to allow the user to bulk reallocate the tier against any customer records that use the selected tier.

In this example we have a tier called ‘Tier IQ’:



This tier is linked to a customer record:


 

When deleting a tier that has a customer link, you will be asked to select a replacement tier:












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